Forex Trading based on Liquidity Pools and Previous Price Behavior

During the last couple of month i have been mentored by the canadian veteran trader Steve Patterson who has got 27 years of experience in this industry and has been trading for his own account for over 10 years. I paid a decent amount of money for his service and i dont regret a single $. Here is why.

This guy tought me a completely new way of thinking about the markets. I now see the them through brand new eyes and percieve the information in a complete different way then before. I now trade without any indicators or any other fancy stuff. Just a plain price charts where i do put some lines to mark of some liquidity pools. Finding liquidity is the one and only purpose why a market exists similar to an auction. Think about it. Today i know that i will never ever again make a trading decision because the indicator XYZ or the pattern "ZXY" told me to sell or buy. There is much more to know about the market and i now believe that if somebody wants to learn such a complex profession like trading its not enough to read a book or watch some canned videos. It gave me so much inside watching my mentor trade day in and day out over a period of time so i could follow his thinking and decision making progress.

Steve by the way just recently won the 2013 award best webinar on FXstreet for his webinar recording "Money makes Money, Trade witht the Big Boys", which gives him a lot of creditibility.

http://www.fxstreet.com/webinars/ses...5-451ace38c84e

http://www.fxstreet.com/search/contr...&contenttype=w

Why i am telling you all this? Since my mentorship is over now and i have all the knowledge to get myself profitable I feel the need to point others the way if they are serious about their goals related to trading. As i already mentioned I paid a decent amount of money for my mentorship with Steve. Since not everyone can afford such a big one time investment he is now offering a trading room with limited seats starting on Monday 08:00 EST. As he told me this enables him to let some people follow his trading style for a reduced price. I whish he did that already a couple of month ago. ,-) I just saw he offers a free trial too. So you may wanna check it out.

The website for the room is www.forexliquiditytrading.com

Let me know what you think.

The room has been online for the second day now and i like it a lot. Steve is giving his daily price biases and analyses pre-session and calls out his live trades during the day. On Monday the market was following the projections very accurately and we had 3 decent trades during NY session. Today we had a pretty mixed picture so we waited only for extreme levels. I found a nice short in on the GBPUSD off the 1.5134 level today which worked out pretty nice.

This were the biases and analyses made and presented by Steve pre NY session for this monday.

EURUSD

Weekly Price Bias = Longs
Daily Price Bias = Long
Sentiment Bias = -1 -1 -1
Summary =

GBPUSD
Weekly Price Bias = Longs
Daily Price Bias = Longs
Sentiment Bias = +1
Summary =

AUDUSD
Weekly Price Bias = Longs
Daily Price Bias = Longs
Sentiment Bias = -1
Summary =

XAUUSD
Weekly Price Bias = Longs
Daily Price Bias = Longs
Sentiment Bias =
Summary =

USDCAD
Weekly Price Bias = Shorts
Daily Price Bias = Shorts
Sentiment Bias =
Summary =

USDCHF
Weekly Price Bias = Shorts
Daily Price Bias = Shorts
Sentiment Bias =
Summary =

USDJPY
Weekly Price Bias = Shorts
Daily Price Bias = Shorts
Sentiment Bias =
Summary =

Comments:
The markets have gapped down from their Friday close be very cautious of taking long trades today on the EUR. The GBP seems to be still ok to try longs and the CHF looks ok for shorts but I am waiting for extreme conditions before entering any hero trades today.


I find it very valuable to have this kind of master plan every day. What do you think?

Just listened to S.P. for 4 plus very interesting hours and he does have it down! Seemed to be similar to Lance Beggs out of Australia. Both have grounded theories of the market and not a lot of the usual jive. I think the bias and sentiment considerations are a must. I had been relying totally on T.A. and a contrarian approach which I will now modify!!!!!!
j.c.

Hi boerge,

Many thanks for share this info in this post. I have been follow Steve from August 2013. I found very powerful way how he see and analyses the markets.

I watched his videos in Fxstreet and compassfx.com. I am applying his techniques mixing with technical analysis. I have a new view of the markets now and TA helpme to know where the majority of the traders will probably place theirs orders given me an edge. I am developing my trading plan base on accumulation of Market orders and also I am designing a spread sheet in order to analyze security sentiment market. I believe this is the key of everything. I tried to go into the www.forexliquiditytrading.com but is asking me for a user and password.

Cheers,

I'm not sure what happened to your Mr Patterson and his wonderful trading. Recently he's been taking over 35 trades a day, and hasn't had a profitable month in the last six. He's fallen into the trap of a novice trader, losing big and winning small.


So are the mighty fallen.

That is a given and the very definition of FX trading.
The unknown is how much can you take from the public before the fall.

Can't say anything about it. Haven't spoken to him in almost a year.

Priceless comment, and right to the point.

Patterson had failed.

The 28 years market veteran, Steven Patterson, has blown >60% of client's funds since November. The attached is merely the best example of how a newbie trades.

Well some of this goes to explain why he was selling trading course to newbies under the hood of Compass - and looks like he has disappeared from there just like Steve Mauro. He wasnt making money from actual trading so he needed to sell training ; claiming to be doing it from the kindness of his heart. Perhaps he was who knows with the conflicting stories you hear. Just glad i did NOT sign up as i smelt/sensed something not right about it.

The problem with the Internet is any fool can post stuff and its accepted as fact but the truth is that the Internet and trading forums are filled with nonsense from losing traders that love to BLAME other people for their failures.

I personally know Steve Patterson and he's a great trader and I've worked with him at a few institutions many years ago.

I know he got involved with coaching at Compass and he had several traders go on to great success. I remember him telling me that one of his students a guy by the name of Peter was producing over 100% returns within 6 months of his classes. I believe this to be true and maybe someone else can verify that.

The thing that bothers me about this post is that it shows me how clueless the traders in these forums really are. So what if Steve lost money for awhile ? I don't even know if that true but if it is who the F cares... its normal to lose money at trading and its not only normal its guaranteed. Every trader I know goes through good times and bad times and I've had great years and made fortunes and bad years and lost money why the hell do you guys think trading is some paycheck job ??

Trading is risky and great traders have outstanding years and bad years DEAL WITH IT !! The fact some people are looking for some steady paycheck from trading just shows me how clueless some people are about the realities of this business.