Notes On BTMM
Notes On BTMM
We don't believe in get-rich-quick programs. We believe in hard work, adding value and
serving others. And that's what our programs are designed to help you do.
As stated by law, we can not and do not make any guarantees about your own ability to get
results or earn any money with our ideas, information, programs or strategies. We don't
know you and, besides, your results in life are up to you. Agreed? We're here to help by
giving you our greatest strategies to move you forward, faster.
However, nothing on this book is a promise or guarantee of future earnings. Any
setups/signals referenced here, or on any of our books, are simply estimates or projections
or past results, and should not be considered exact, actual or as a promise of potential
earnings - all setups are illustrative only.
If you have questions, E-mail us: [email protected]
Thanks for stopping by. Remember: Forex Is Too Risky, But Can Change Your Life.
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FINANCIAL MARKETS
The objective of an investment decision is to get required rate of return with
minimum risk. To achieve this objective, various instruments, practices and
strategies have been devised and developed in the recent past.
With the opening of boundaries for international trade and business, the world
trade gained momentum in the last decade, the world has entered into a new
phase of global integration and liberalization.
The integration of capital markets world-wide has given rise to increased financial
risk with the frequent changes in the interest rates, currency exchange rate and
stock prices.
People and organizations wanting to borrow money are brought together with
those having surplus funds in the financial markets
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Types of Markets
Physical Asset Vs Financial Asset Markets.
Physical Asset Markets (also called “tangible” or “real” asset markets) are those for
products such as wheat, autos, real estate, computers, and machinery.
Financial Asset Markets, on the other hand, deal with stocks, bonds, notes,
mortgages, and other claims on real assets, as well as with derivative securities
whose values are derived from changes in the prices of other assets.
A share of Ford stock is a “pure financial asset,” while an option to buy Ford shares
is a derivative security whose value depends on the price of Ford stock.
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Spot Vs Futures Markets.
Spot markets are markets in which assets are bought or sold for “on-the-spot”
delivery (literally, within a few days).
Futures markets are markets in which participants agree today to buy or sell an
asset at some future date. For example, a farmer may enter into a futures contract
in which he agrees today to sell 5,000 bushels of soybeans six months from now at
a price of $5 a bushel.
On the other side, an international food producer looking to buy soybeans in the
future may enter into a futures contract in which it agrees to buy soybeans six
months from now.
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Money Vs Capital Markets
Money Markets are the markets for short-term, highly liquid debt securities. The
New York, London, and Tokyo money markets are among the world’s largest.
Capital Markets are the markets for intermediate- or long-term debt and corporate
stocks. The New York Stock Exchange, where the stocks of the largest U.S.
corporations are traded, is a prime example of a capital market.
There is no hard and fast rule on this, but when describing debt markets, “short
term” generally means less than 1 year, “intermediate term” means 1 to 10 years,
and “long term” means more than 10 years.
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Primary Vs Secondary Markets
Primary Markets are the markets in which corporations raise new capital. If
Vodacom were to sell a new issue of common stock to raise capital, this would be a
primary market transaction.
The corporation selling the newly created stock receives the proceeds from the sale
in a primary market transaction.
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Secondary Markets are markets in which existing, already outstanding, securities
are traded among investors. Thus, if Jane Doe decided to buy 1,000 shares of
Vodacom stock, the purchase would occur in the secondary market.
The Dar es Salaam Stock Exchange is a secondary market because it deals in
outstanding, as opposed to newly issued, stocks and bonds. Secondary markets
also exist for mortgages, various other types of loans, and other financial assets.
The corporation whose securities are being traded is not involved in a secondary
market transaction and, thus, does not receive any funds from such a sale.
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Private Vs Public Markets
Private Markets, where transactions are negotiated directly between two parties,
are differentiated from Public Markets, where standardized contracts are traded on
organized exchanges.
Private market securities are, therefore, more tailor-made but less liquid, whereas
publicly traded securities are more liquid but subject to greater standardization.
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A Healthy Economy Is Dependent On Efficient Funds Transfers From
People Who Are Net Savers To Firms And Individuals Who Need
Capital. Without Efficient Transfers, The Economy Simply Could Not
Function.
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While the stocks of most large companies trade on the NYSE, a larger number of
stocks trade off the exchange in what has traditionally been referred to as the
Over-The-Counter (OTC) Market.
An explanation of the term “over-the-counter” will help clarify how this term arose.
As noted earlier, the exchanges operate as auction markets—buy and sell orders
come in more or less simultaneously, and exchange members match these orders.
If a stock is traded infrequently, perhaps because the firm is new or small, few buy
and sell orders come in, and matching them within a reasonable amount of time
would be difficult.
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• To avoid this problem, some brokerage firms maintain an inventory of
such stocks and stand prepared to make a market for these stocks.
These “dealers” buy when individual investors want to sell, and then
sell part of their inventory when investors want to buy.
• At one time, the inventory of securities was kept in a safe, and the
stocks, when bought and sold, were literally passed over the counter.
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Today, these markets are often referred to as Dealer Markets. A dealer market
includes all facilities that are needed to conduct security transactions, but they are
not made on the physical location exchanges.
These facilities include:
1. The relatively few dealers who hold inventories of these securities and who are
said to “make a market” in these securities;
2. The thousands of brokers who act as agents in bringing the dealers together
with investors; and
3. The computers, terminals, and electronic networks that provide a
communication link between dealers and brokers.
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• The dealers who make a market in a particular stock quote the price at which
they will pay for the stock (The Bid Price) and the price at which they will sell
shares (The Ask Price).
• Each dealer’s prices, which are adjusted as supply and demand conditions
change, can be read off computer screens all across the world. The bid-ask
spread, which is the difference between bid and asked prices, represents the
dealer’s markup, or profit.
• The dealer’s risk increases if the stock is more volatile, or if the stock trades
infrequently. Generally, we would expect volatile, infrequently traded stocks to
have wider spreads in order to compensate the dealers for assuming the risk of
holding them in inventory.
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You need to understand that the market is not free; it’s manipulated like a puppet.
The three major manipulators are Liquidity providers, Top currency traders (Banks
& Hedge funds) and Brokers.
I will not go into details as to how they manipulate the market but you are reading
these PDF because whatever you are doing is not working for you, so trust me
when I say the market is manipulated.
Simply understand that market makers are in business and every business needs to
make money; unfortunately retail traders are “customers” to this business. Market
makers are constantly hunting your stop loss using algorithms that scans your entry
point, stop loss, and take profit.
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This algorithm then fluctuates according to the mass amount of orders it is
receiving and where the retail traders have placed their stop losses, with the intent
to hit as many stop losses as possible while at the same time avoiding to hit take
profit level areas of retail traders.
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WELCOME TO THE HARDEST GAME IN THE WORLD!
Unfortunately, you are playing with some of the sharpest, fastest, most intelligent,
well informed, stubbornly irrational and in many cases, unethical minds in the
world.
You’re up against:
The computer that can react faster than you.
The trader who has more experience than you.
The fund that has more money than you.
The insider that has more information than you.
The others that will misinform you.
The inner voice that will do it’s best to undo you.
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So Leave All Your Dreams Of Making Quick And Easy Money,
Behind.
READY TO PLAY?
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MM Do The Following:
• Induce traders to take positions
• Create panic and fear to induce traders to become emotional and think
irrationally;
Quick moves
Spike candles
News releases
Inexplicable price behavior
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Restrictions:
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SESSIONS
There are three sessions namely:
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HERD MENTALITY
• Herd, Mob and Pack Mentality, also lesser known as Gang Mentality,
describes how people can be influenced by their peers to adopt certain
behaviors on a largely emotional, rather than rational, basis.
• After all human being are animals, we feel safe in numbers and the people
who control the market know these. The people putting this into effect
want a certain outcome, outcome based framework. Ultimately, this is not
about the market, but about mind control and how to control the actions
of a herd based society.
• The herd is being taught to trade in a particular way; to trade Breakouts,
trade support /resistance, follow the trend; these are the main ways the
herd is taught to trade. This is completely designed this way, there is an
underlying structural framework used to take out anyone and everyone
that uses this method of trading. If the masses are already losing, why
would you consume the information that the masses use and expect NOT
to lose?
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A Herd Of Sheep Is Leaving The Stall. There Is No Fence, Only The Gate
“The Trap Of Thinking”
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MIND SET
• We must understand that this is a business and not a hobby or a
game
• The dealer is laying in waiting for us to make an uneducated or
emotional decision
• If you are treating this as a hobby…. Please leave. Do not loose your
money to dealers pocket.
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CHART OBSERVATION
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DEALERS’ BOARD
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PERIOD SET - UP
• Accumulation set the initial high and low
• Stop hunt false move against their real intention
25 to 50 pips from the blue box
• Real trend move 6 to 8 hours
• Day end off high/low back to consolidation
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STOP HUNTING
• Stop hunting is a strategy that attempts to force some market
participants out of their positions by driving the price of an asset
(currency) to a level where many individuals have chosen to set their
stop-loss orders.
• The triggering of stop losses generally leads to high volatility and can
present a unique opportunity for investors who seek to trade in this
environment.
• A “Stop Hunt” is a sharp move to the high or low. This can be the high
or low of the previous day, high or low of the previous week / month
or year. The larger the timeframe the larger the stop hunt.
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Identify Stop Hunt
• Three swipes on 15 Minutes
• 1 min inducement
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• Asian opens at 000 hours and the dealer sets the accumulation phase
• In Asian box, the dealer sets the initial high and initial low of the day
• Then you see an aggressive move, vector candles usually 3 swipes
which breaks the initial high/low of the day.
• Note that this is a false move and moves 15 to 25 to 50 pips from the
initial high/low of the day.
• Then the dealer issues a pattern, an M/W/V - top/V – bottom/A and
shift away from the false move leaving traders trapped
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MM PATTERNS
•M
•W
• 22
• V Top/ V Bottom
• Outside structure
• Half a batman
• Inverted half a batman
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Anatomy of M pattern
• The first leg rise induces traders to take long position
• The center triggers their stops for weak traders and gets traders to
stop and reverse short
• The second leg rise triggers their stops
• The second leg can be slightly above the first but must close within
30M
• This leg will only go above the first if there are orders built up there
• This move triggers the stops pf the traders that have taken short
positions off of the first leg and grabs any break out traders that have
pendings waiting there.
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MULTISESSIONAL M
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W Formation
• Exactly the opposite of M
• The first leg correction induces traders to take short positions
• The center triggers their stops and get traders to stop and reverse
long
• The second leg correction triggers those stops
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22
• The second leg of a second leg
• One of the safest patterns
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Half a Batman
• Has an outside structure of a V Top
• Usually occurs out of level 1 consolidation
• MM has enough trapped volume,
so he moves straight away out of the
consolidation.
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ENTRY TRIGGERS
• The pattern
• The pattern
• The pattern
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The most important aspect when trading M and W Formations is your entry. You
can and will start to get trades with zero drawdown if you keep practicing patience.
Let the price come to you.
There is no absolutely need to get emotional when you are trading M and W
formations!!!!
Unless you are over leveraging your account, you should never feel like your
emotions will get the best of you when trading.
These M and W setups are designed to be executed with precision and accuracy to
help achieve the best possible risk reward ratio.
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Your goal is to enter Sells as Close to the High as possible and enter
Buys at the Lowest Point possible so you can have a very small stop loss
and more potential for reward!
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• Asian box should be <= 50 pips for a perfect trade setup during
London session
• If the Asian box is blown, >50 pips, do not trade unless you are an
expert in MMM
• 15M TF
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• The market is based on three levels cycle.
• MM will set a peak high or low and move away from the peak three
levels.
• After each level, there is a corresponding level of consolidation.
• Most of the time stops will be triggered before the next level is
started. During these zones 20 to 30 pips swings will be seen. MMs
are hitting the stops both ways to make easy work of the next level
move. No buying or selling pressure from the market.
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• Level 1
• Market maker driven, fast moves
• Level 2
• Market driven in absence of market maker support, Emotional traders.
• Level 3
• Market maker driven to trigger the stops and create panic.
• During these levels market maker will buy from the traders to create
positions, with the heaviest volume being seen at the third level.
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• False move on Monday, trap traders
• Tuesday form peak & lock
• Straight away trade
• Three levels of rise/correction
• Pull back to midweek range on Friday
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Having reached level 3, the dealer objective changes. Price will drop or rise a bit
further to demonstrate further bearish or bullish movement satisfying various
criteria of the trader. However, they pull away quickly, move price away and book a
profit.
Level 3 will appear disorganized with price chopping back and forth usually within a
wide range.
When traders loose money, they take a day off to re-evaluate their decisions. MMs
know this and must chop the market to bring them back into the fray ….then the
cycle continues
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• 3-33 trade if ADR*3 is not met
• Reversal
• Peak extension
• Reset (1.5 ADR)
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DO NOT CONFUSE LEVELS WITH ELLIOT WAVES
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To make things easier, a number of features and indicators are added to
your discretion. These include:
Candlestick patterns
Indicators
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The 1st important thing to understand about candlesticks patterns is
that in the wrong market context, they have little or no meaning.
Candlestick patterns that are most helpful are:
Spike candles
Spinning tops, hammers & inverted hammers
Evening star & morning star formation ( extension of RRT)
RRT ( Rail Road tracks)
Doji Candles
Cord of woods
High test
Low test patterns
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Evening star and Morning star
They are simply an extra 15 minutes for the MM to take your money
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Rail Road Trucks
• A 30 mins structure where the MM triggers the stops, shift the zone.
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The Spike
• An aggressive change in price usually following a news announcement
used to trigger stop or move the trading zones.
• Direction is based solely upon the dealer open volume (net longs or
net shorts)
• Nothing to do with the retail traders trend
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Cord Of Woods
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High Test Pattern
• Occurs at the price of yesterday’s high
• You should change the direction and trade against the technical trend
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IMPORTANT
It is important to understand that the candlestick pattern can only be
defined at the close of the candle
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EMA
EMAs when used in the Appropriate Way & Control, can give:
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The Specific EMAs
• 5 – Yellow (Mustard)
• 13 – Red (Ketchup)
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USES
5 + 13 crossover – signal line, M/W
50 & 200 – EMA bounce
50 + 200 cross – trend confirmation, peak locked ( one of the
confluences)
800 – Blueberry trade, if you miss the peak
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Blue Tracer
They mark yesterday’s high or yesterday’s low
MM do what is called to be high – low drill
• If the dealer breaks the high and holds it for 2 hours, if you anticipate short
trade, close the trade and go long. His intention is to extend the SHH to
another level.
• But if he comes back aggressively, go short.
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Color Coded Session
Blue Box – Asian Session
Light Blue Box – Gap Time
Red Crimson Box – NY Sessions
Stop Hunt Boxes
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TDI: H4
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Psych Level
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Price Line Grid
Whole numbers prices are used by MM to reverse
Quarter theory
• Some quarter points act as support and resistance: So the dealer uses
them to reverse and do stop hunts.
• Expect break and retest around these areas.
ADR Marker
• Shows the trading zone that the MM may move.
• They can be used as entry signals or as TP.
• Think… Do you really think the Broker is matching you up with some
dude in Italy?
• Or, Is he taking the other side of your trade and hope you haven’t had
this class!?
200 Bounce
• A pin to the mayo, or price bounce to mayo
Blueberry Trades
• A price close just below or above the blueberry
• A pattern formed on the blueberry
• An AFP trade
Each index related to the stock and bond markets has its own calculation methodology. In
most cases, the relative change of an index is more important than the actual numeric
value representing the index.
Example: If the Financial Times Stock Exchange (FTSE) 100 is at 6,670.40, that number tells
investors the index is nearly seven times its base level of 1,000. However, to assess how
the index has changed from the previous day, investors must look at the amount the index
has fallen, often expressed as a percentage.
Stock indices are typically calculated in one of two ways. The majority of global
indices are capitalization-weighted, which means that a company with a higher
market cap (or total value on the market) has a greater impact on its index’s price.
However, some major indices – like the Dow Jones and Nikkei 225 – are price-
weighted, which means that a company with a higher share price affects the
index’s price more. In a price-weighted index.
Example: A company with a share price of $100 will have ten times the influence of
a company with a share price of $10.
The above explanations can help you speculate indices direction based
on performance of a specific physical asset, but the indices market is
also a dealers’ market. Hence we use MMM together with the
information provided to investors to speculate on their trends and
trade inline with the true trend.
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LEVELS
• Anticipate stop hunt zone and entry zones, a day before it happens.
7. Rather than aiming to make many pips per day to achieve your income targets,
use a method which is highly reliable and ramp up your contract size.
• In choosing the proper RM, it should match with the capital and
contract size.
$100 0.01 3
$200 0.02 3
$1000 0.1 3
$2000 0.2 3
$10000 1 3