plenty of various opinions and strategies about how the market strikes, such because the
Wyckoff methodology, Elliott Waves, Stacey Burke Buying and selling, Steve Mauro’s BTMM, and many others. One
factor that each one of those strategies have in frequent is that the market strikes in
market is at all times transferring in some three push sample. The market is
fractal, and all the things that’s occurring
on the next time-frame is going on way more regularly on the decrease
time frames. If there’s an uptrend on a 15-minute chart, however the 15-minute chart
is at the moment pulling again, you is perhaps in a downtrend on a decrease time-frame,
you is perhaps in an uptrend on the month-to-month chart, however in a downtrend on the 15-minute
chart you must bear in mind and perceive that persons are buying and selling all these
completely different time frames, and that is the place we begin to use the month-to-month, the weekly,
and the each day earlier highs or lows for understandings of the place persons are getting
into the market. We name them “Different Time Body Merchants” (OTF). It helps us to determine
liquidity areas. As soon as these OTFs are available in the market, we ask:
The place are their cease loss orders? The place is their cash, on the higher or on the decrease
finish of a spread?
third push into one route value goes to retrace, that’s going into consolidation:
all the things between a excessive and a low is consolidation. That is the market maker’s
lure to erase and harvest the retail dealer’s entry and cease loss orders. Throughout
the second push retail-traders consider that value goes to proceed greater
or decrease, all people jumps in. This makes it very straightforward for the market maker to see
the place merchants are getting in, and the place they’re placing their cease loss orders.
4 completely different variations of the three push patterns that may be noticed on all
1. 3 Ranges, additionally known as ‘stair stepping’.
2. 3 Pushes:
a. Stair Step.
b. 1, 2, Pause, 3.
c. 1, 2, 3.
d. 1, Pause, 2, Pause, 3.
e. 3 Burst Impulse Candles.
3. 3 Pushes out of consolidation in any of the above listed variations.
4. Working Ranges (3 Pushes)
a. Triple Tops.
b. Triple Bottoms.