M&W-Trading

Pipanator,

This is how I would have read that one hour chart and it's different levels.

Just my take anyway.

Thanks

I absolutely agree with you. The more you study the charts, the more you find similarities and recurrences of market maker moves taught in this method.

EUR/JPY last week presented a wide W-pattern over Thursday/Friday thus completing the Level3 bottoming action. The second/right leg of W-pattern was formed at 8:45pmET during Friday's asian session, although it did not come near the first leg at Thursday's 9:30amET lows. However, two good StraightAway trades can be taken as shown in next two 5mins charts. Thursday's Level2 short from 109.868 was good for +103pips while Friday's Level1 long from 109.732 was good for +78pips (more if the first entry 109.589 had not been taken out by the 11amET spike down). Noticed that Thursday's StraightAway drop broke below the lows formed on Wednesday, while Friday's StraightAway rise reached the highs formed on Thursday. The method does work.

(The W-pattern if hard to see, is marked by the two green circles inside Level3 yellow box.)

Great advice guys really helped.

I think I am looking at the levels to closely rather than the main ones I guess you could use the fractals theory patterns within patterns but i get you. I never thought about using trendline’s to make obvious level points do they have to be any particular angle or is it as tom demark says the steeper up/down the stronger?

ynot4x reason I mention that it is that it makes sense the Market Makers do not have enough volume accumulated to make a big move and retrace 2/3 times gaining more contracts to make the move.

Also, is it possible to have 4 levels rather than 3 then see a reversal?

"Also, is it possible to have 4 levels rather than 3 then see a reversal?"

The MM do what they want to do. All the rules can be manipulated. This week I had a nice move that only had two levels.

I use a 5min chart to see if there could be a U turn and no third leg.

If you look at the image from the course and then go and look at the charts and see if there are exceptions.

Good Luck,

Thanks

EUR/USD on 5mins chart showed 3 "pushes" to the highs after 2amET european open, testing last week Friday's HOD of 1.33758. Prices made higher highs but TDI showed divergence and stayed under volatility band.

Shorted first entry at 1.33599 after two 5mins red bars (late breakout buyers trapped), added second entry at 1.33515 when trade moved comfortably in my desired direction down. Moved stop to breakeven+2pips. Took partial profits at 1.33198 for +40pips best exit from first entry.

Caught the second/right leg of 15mins M-pattern, forming "3 hits to Friday's high". First leg of M was formed in asian session at 7pmET.

Update: Once the trades proved to be winners, rode the intraday "smart money" trend and peeled off small bits (take partial profits) as far as the move will go. Expect LOD or HOD to be formed in New York 9:30amET session (trend reversal) and then close the remaining partial/trailing positions.
EUR/USD best partial exit to 1.32798, +80pips.
GBP/USD best partial exit to 1.59939, +55pips.
USD/CHF best partial exit to 0.90670, +51pips.

As one teacher taught, it is possible to capture the intraday HOD and LOD with this method. As shown in above EUR/USD trade, the sell short entry was near to 4:25amET highs and exit cover was near to 9:25amET lows, capturing 80pips out of 102.2pips ADR available today.

Great advice and charts bstay love em!

Just wondering today we seen the GU make a huge stop hunt than the EU so does that mean more contracts have been accumulated for a short move which should be larger than the EU seeing it made a smaller stop hunt, but still moved nicely.

I calculate the impulsive leg to be 95% of the buying contracts from Asian through London open high which was 98 points on the buy swings before the drop if you get me.

Shorted first entry at 1.33599 after two 5mins red bars (late breakout buyers trapped), added second entry at 1.33515 when trade moved comfortably in my desired direction down. Moved stop to breakeven+2pips. Took partial profits at 1.33198 for +40pips best exit from first entry.

Hi bstay2,
thanks for the post which contains some valuable insights. Would you normally wait for 2 bars before entry or consider entry after the first?

Hammo

Just wanted to post a trade before the results. I felt this was a valid trade since we had three pins to the low of the day. I will watch it carefully to make sure it isn't a trap since we are only in the last day of a down cycle or in the first day of an up cycle.

Thanks

yeah ynot your comments are fantastic.

Hi All,

well the disadvantage of posting trades before they play out is everyone can see your mistakes or misreads of the charts. Up a couple of post you can see my entry into the USDCAD and then this shows where I got out. A 25 pip run on a week currency so ok. I did however have a 10 pip loss on GBPUSD today so overall not such a good day. It happens. Will watch and see if a perfect setup happens latter as night comes on, but not a big deal there is all ways tomorrow.

Only my charts and my take from now on.

Thanks all.

Hi I'm a new bee. from where can i get the chart template of steve mouro's MMM method.

Some StraightAway trades that could be taken today.

EUR/USD on 15mins chart showed railroad tracks or tweezers candlestick formation at 2:45amET, while GBP/USD on 15mins showed "2 pins" to the declining 50ema at 4:45amET.

On 5mins chart, the only signature is probably the "SharkFin" in TDI for entry.

So, using this method can the Asian session make a high/low of the day and without London making a stop hunt high/low and make the big move of the day? I guess it would be more authentic to see stop hunts in both Asian and London open to confirm each other before taking the mark down move?

I would also like to contribute my info on this method to share to everyone as I care about the well being of all traders.

The market usually goes through regular daily cycles in all pairs. Marker makers use the Asian session high and low to form a channel. If you see a high Asian range lower your targets as London/NY may make small moves. We will usually see a false breakout at the start of day/week/month/quarterly for price to reverse.



The Asian range period what is happening here is market makers are waiting for positions to build up these are set between 6am – 9am BST time. After the London open false breakout MM will make a high/low for the day displaying an M or W formation then go on a MM trend run for 6/8 hours into the NY session, which will create a W formation back then into the Asian range accumulation phase. Trading the M/W the right time of day equal success. MM will not move in 1 direction 3 sessions in a row.



Fractional disparity creates moves on pairs. Formation plus time equal success. Look to take profits on session change overs. New sessions bring new targets for MM like the NY reversal trade. If your trade is not in profit substantially within 2 hours take the profits off or a small loss as market dynamics is not right. The market has a 3 day cycle. A reversal usually occurs at the New York session especially if Asian and London have moved little. Targets using this method are TP1 is at 50 EMA and TP2 at 200 EMA or middle of range.


The ideal Asian range in 50 pips. The trading zone is set to 25-50 points higher than the Asian range this is an extreme point. If you see these moves earlier within the Asian range e.g. 3 swings to the high/low this is called a straight away trade which is tradable. Equities are important if trading the NY reversals. After a significant move don’t look for large TP2 profits as they rarely break the peaks. When spreads widen this is an indication of a stop hunt operation going on. MM change the timings of the patterns regularly when news releases.


A back of the hour type of candle is one where it stays the same for 45 mins then quickly changes in the last 15 mins usually on a ¼ hour chart. Daily HI/LO are the most important points of the day. They are usually quick moves in 3 swings to change your psychology to make entries. 3 quick/momentum bars signal a stop hunt mode and 15-20 up/down candles signal a trend run. If you are taking a A level/Batman shaped trade use a 23 pip stop loss approximately if you’re taking the 2nd leg of a M/W formation use a tight stop 7-10 points.



MM create sentiment and act against it they use news and rumours to get your money. Fast moves are usually false; never chase a rising and falling currency. MM drop to buy and pump to dump. MM with extend HI/LO in 3 moves. The trend move is slow and steady. The 3 levels usually have 20-25 point pullbacks. Try and run the week count in reverse. Have a collection of hourly charts. Different pairs have different cycle’s times. The bigger moves are seen on Wed-Fri. Mon-Tue MM build false moves sometimes. MM go on holiday the first full week of December also between mid-December to Mid-January. MM come back 2nd full week in January.



On US holidays the Asian session is usually aggressive. Use News releases to complete the daily/weekly cycle. It takes MM a couple of days to build lots of volume to make major midweek reversals. 20 point Asian ranges will make a huge false move and a big reversal for the day. Count the MM level counts backwards. At the start of the trading day take a note on the daily candle colour. Once volume is trapped MM will not cross that level again.



The current days Hi/Lo will come near it but not take it out. MM will throw a spike right to it but close away from it [the spike keep you trapped] This will occur mostly around London open. MM trade both ways and you should too.



MM don’t know what way the market will move its all about how many contracts are accumulated during consolidation. Using this method you should not get stopped out more than 2 times if so market conditions are wrong. Move to breakeven after 50 points when starting out.



The 3 days market cycle can be between 200/600 points to the HI/LO before a reversal takes place best seen on a 4hour chart. After a level 3 rise MM maker a reversal between 2-3 days after. At times Asian and London consolidates and NY makes the big move of the day. If the 2-3 hour setup formation expires take a small pip gain avoid the loss. If the M or W creates a 3rd or 4th leg but below the high or low stay in trade remember the 2-3 hour time set.



During the Asian session the smaller candles mean a bigger move will come. The last 3rd of the Asian session is the most important. You can take the 2nd leg of M and W formation if M and W comes out of the Asian range.




Read the market as:-

Sun going into Mon Mon going into Tue Tue going into Wed Wed going into Thu Thu going into Fri

Stop Hunt Levels Pairs:-

EUR/JPY 75 EUR/USD 25-30 AUS/USD 25 USD/CAD 25-30 GBP/USD 50 GBP/CHF 50-60 USD/CHF 25-30

Market Makers Method Steps:-

1. Price consolidates 20-50 pips less than 50 points Asian range
2. Price makes a false breakout hi/lo in 3 swings sometimes with consolidation [check the count]
3. Price then moves between 25-50 pip away from the Asian hi/lo range
4. Price then holds up and makes a M or W formation between 30-90 mins ideally sometimes 2-3 hours max
5. Price then hits a ADR point
6. Price then tests yesterday’s Hi/Lo
7. Price sometimes break a 3rd/4th leg if HI/LO than previous high/low stay in trade
8. Price then heads in the MM trend run last about 6-8 hours through to the NY session
9. Price makes a M or W pattern this should be your exit point as a reversal may occur

The Straight Away Trade

1. Most difficult trade to recognise
2. No stop hunt is needed
3. Trap moves was made from previous session
4. MM trigger the stops and trap the volume in a previous move [yesterday’s peak formations]
5. The opening channel is tight
6. Price falls or rises right out at the box at the open and never comes back
7. Also occurs after a big move continuation trade
8. MA’s can be used for entry and guidance
9. Straight away trade will most often occur as a level one consolidation trade
10. Do not sell/buy a level 1 consolidation against the peak formation
11. Look at the previous trap moves and levels

The New York Reversal Trade

1. Occurs between 2pm – 5pm BST
2. Price is at level 3
3. The HOD/LOD have already formed
4. Price has met or exceeded the ADR
5. Price pulled away from the MA’s
6. Price forms a candlestick reversal pattern
7. Use RSI/TDI confirmation
8. Profit target is 50 EMA or Middle of range
9. Approximately projects 40-50 pips until day end consolidation is observed close trade

You already answered these questions in your own notes about "Straight Away" trades. There was a similar EUR/USD trade on March 2nd which ran from 2:00amET railroad tracks or tweezers (compared to Tuesday's 2:45amET setup). And as your notes say, take profits before the next session changeover around 9:30amET (when U.S. equities markets open) after the 6-8 hours trend move.

EUR/USD had good short entry 1.31576 at 2:45amET, but tightened stop too quickly and trailed out breakeven. Re-entered lower short 1.31426 at 4:20amET, added 1.31369, and got out 1.30648 when SNB (Swiss National Bank) started intervening at 5:41amET. Best partial exit +78pips, although I peeled off profits along the way down due to heavy news releases today. The 15mins (bearish) reversal pattern is more like head-and-shoulders (see TDI signature), where my re-entry short was at the right shoulder with 4:15amET shooting star candlestick pinning the declining moving averages.

GBP/USD also shorted early at 2:20amET but scratched breakeven. Re-entered short 1.58949 at 4:15amET, added 1.58882, and closed out +66pips at 1.58294 around yesterday's LOD. Also peeled off partial profits along the way down.

AUD/USD took several breakeven scratches due to tightening stops quickly, in order to control open risks in too many positions same direction. The 15mins (bearish) reversal pattern also looked like head-and-shoulders (see TDI signature). Missed the down run but found the long entry 1.02701 at 6:40amET and picked up +40pips.

http://i.imgur.com/pnl08.png

USD/CAD ran up from London open to meet Monday's HOD of 0.99899, created "3pins" at 6:30amET just under last Friday's HOD of 0.99983, inducing traders to go long and reaching ADR (Average Daily Range) highs. Weekly pivot M3 is also in the area. Market makers (or smart money) then used the 8:30amET Canadian news releases to pull away from the intraday highs, thus trapping the breakout traders and late long buyers. Shorted 0.99852 at 6:40amET, added 0.99815, and closed out +62pips at 0.99231.

Excellent bstay2.

I took USDJPY short today and got stopped out.
Not been trading this for too long, but believe in the potential.

I had a very bad week only trading this strategy, but have not lost all the profit I made in the past two weeks.

Thanks for sharing your charts.

Cheers,
Erick

Trading This Week (4 days, Monday - Thursday) : 1.152 Pips

should be around 1.500 Pips if I was in front of my chart on April, 5th

Followings are my trades posted in Ind*-investasi daily right after trades closed, snapshots are taken right before trades closed to provide the real pips gain:

April, 2nd
- First entry 2 units (72 + 70 = 142 pips)
- Second entry 3 units (28 25 24 = 77 pips)
- Total = 219 pips

http://img571.imageshack.us/img571/1658/euapr2.gif

April, 3rd
6 units GBPUSD; 44, 44, 41, 37, 29, 10 = 205
6 units EURUSD; 41, 26, 26, 22, 22, -0.2 = 137
Total = 342 Pips

http://img191.imageshack.us/img191/4582/euapr3a.gif

http://img7.imageshack.us/img7/8495/guapr3a.gif

April, 4th
EURUSD Scale-in 5 units: 70, 66, 67, 68, 68 = 339 Pips
GBPUSD Scale-in 5 units: 34, 60, 57, 52, 44 = 247 Pips (left open till April, 5th)

http://img4.imageshack.us/img4/6342/euapr41.gif

http://img62.imageshack.us/img62/2815/guapr41.gif

April, 5th
(56 48 30 40 24 54) 252 Pips

Pic next post

April, 5th
(56 48 30 40 24 54) 252 Pips - Closed of yesterday's entry that left open overnight

http://img820.imageshack.us/img820/5364/guapr5.gif

Can someone kindly post pics of level counts on the 4 and 15 mins charts I get confused on the level phases of the market.

Also, does the spread widen at the high low of the day is tested?