The Jail Break System

Thanks, hopefully it will keep moving lower. I would like to see it come down to 119.000, which is the 200EMA.

I sold it at 119.399

Here's the CHF/JPY pair on the 1 hour chart. At the present time were at the 1st level and this pair is moving up to the 2nd level.

Here's the EUR/JPY pair on the 1 hour chart. At the present time were at the 1st level and this pair is moving downing to the 2nd level.

On the pair CHF/JPY 1 hour chart the outer red candle with the red arrow pointing up at it is a fake candle. This pair is going up to the 2nd level.

On the pair EUR/JPY 1 hour chart the outer red candle with the red arrow pointing up at it is a fake candle. This pair is going up to the 2nd level

Great info here. For those who have eyes to see.. many thanks pokerchip .good pips

Hi PokerChip, I am confused on the 2nd level that you mentioned, hope you can clarify further.
Are you referring to the "whipsaw effect of trapping traders" or "MA50 cross over 200" as 2nd level? If MA50 cross-over 200 is the 2nd level, but in H1 chart 200 is below 50. this pair must go down in order to cross 200.
Thank you.

Thank you Sir

Okay think of these levels as walking up stairs or walking down stairs. Every step is a new level. You want to look for railroad tracks. (llllllll) these kind of railroad tracks. These railroad tracks are accumulation zones, " MM " are accumulating contracts from buyers and sellers. Once the " MM " have a imbalance of say 70% sellers and 30% buyers the " MM " leaves the box, sometimes they put a fake move in the wrong direction to pull in more traders, and sometimes they don't make a fake move.

The key to all of this is the railroad tracks, the railroad tracks are what you want to find. These are the levels, find the lowest railroad tracks and you've found a new lower level. Same thing if a pair is going up, find the next railroad high and that will be you're level.

Three levels and usually there will be a reverse. But, sometimes they will keep moving up or down. Be patient and wait for the levels to be completed.

Sometimes I use a line chart instead of candlesticks to find these levels.


(1) When the 13 crosses over the 50 is to be bullish and it is looking for a 1st level to establish.
When the 13 passes under the 50 is to be bearish and it also is looking for a 1st level to establish.

(2) When the 50 crosses over the 200 to be bullish it is looking for the 2nd level to establish.
When the 50 passes under the 200 to be bearish it is looking for the 2nd level to establish.

(3) This is the most important part of all 3 levels. The 3rd level is when you make the profit because you'll have confidence in the trade after seeing the 1st and 2nd levels established.

When the 200 crosses over the 800 this will be very bullish it is looking for the 3rd level to establish.
When the 200 passes under the 800 this will be very bearish it is looking for the 3rd level to establish.

Then after a new high is established the cycle repeats itself and starts all over again but were headed in the other direction to lower levels for a new first lower level to be established.

If we hit a new 3rd level low, the cycle starts all over again but were looking for a 1st level high. Then look for the 13 to cross over the 50 for the beginning of the 1st level.

Use the 1 hour chart to locate where you are. You could be anywhere using different pairs. So open up a 1 hour chart and find the level where the pair is at and draw the box of the level or levels and start watching. This will help you understand why you want to trade with the " MM ".

I hope this explanation helps.

For the pair AUD/JPY were at the 1st lower level and looks like it's looking to go lower.

Note: If you can get 20-30 pips a day these days, that's like hitting a homerun everyday . The longer you stay in a trade you become part of the herd, don't become part of the herd. That's when a reversal comes. The " MM " is always looking for a imbalance to reverse a pair so they can trap a bunch of traders.

All I do is this, if I can get 8-10 pips in one pair I'm happy and I'm out of the trade.

The best time to trade is right after a pair has set a new high and has come down to the 1st established lower level then you know what direction the " MM " are going to take it.

Remember this, if any pair is running slow and steady this is correct direction. Slow and steady.

Here is the AUD/CAD and it just passed the 2nd level box and it's on it's way lower.

Note: When using the Jail Break System, I would highly recommend staying out of a pair that is ranging. Like the EUR/USD.

Here's the EUR/GBP on the 1 hour chart. It looks as if the pair wants to reverse and start looking for the 1st level to the north. We will see.

Remember when you look at any chart, you want to look at it as if you are the " MM ". How can I trap these traders. This will help you I believe.

The " MM " usually will use 2-3 candles, or a big single candle to trap a trader, then bam the trader is trapped and the reverse comes and the " MM " has just made it's profit.

The USD/JPS just passed the 1st level box on the left moving south in a hurry looking for the 2nd level.

Here's the AUD/JPY on the 1 hour chart and moving south and passing the 1st level box on the left. It just crossed over the 800EMA looking for the 2nd level.

The pair AUD/USD should be about to reverse and go north or up. This pair has hit all 3 levels now.

Update on AUD/JPY 1 hour chart. If you sold this pair at the bottom of the box, you could have had over 40 pips.

Note: If you want to speed up the process of making a profit. I would highly recommend looking for only selling positions. When you sell, it drops a whole lot quicker than when it goes up.

We have a reversal in EUR/GBP, I would recommend waiting until we have a accumulation box. Then after the box is formed wait until we have a break out, we might have a fake out but wait and see.