Beat the Market Maker (BTMM) Forex Strategy Handbook
Mastering BTMM for Consistent Profits
Section 1: Foundations of BTMM (Pages 1–10)
1. Introduction: Why Market Makers Move Price
The forex market is a decentralized global marketplace with trillions traded
daily. Within this structure, large institutions and liquidity providers—
commonly referred to as “market makers”—control and manipulate price to
fill large orders. Retail traders often become liquidity providers for these big
players by placing stops in predictable areas.
The BTMM method teaches traders to recognize these manipulations and
align with market maker cycles rather than becoming a victim of them.
📊 Diagram 1: Market Maker Manipulation Example
Stop Hunt High
/\
/ \____ Trend Reversal
Asian Range --- London Stop Hunt --- NY Move
2. Core Philosophy of BTMM
Market makers hunt stops: They drive price into zones where traders’ stops
are clustered.
Cycles, not randomness: Markets move in repeatable cycles of accumulation,
manipulation, and distribution.
Predictable time windows: Market makers operate around specific sessions
and times of day.
3. The Market Maker Cycle
Every major move follows a 3-phase cycle:
1. Accumulation (Consolidation) – Price ranges tightly to build orders.
2. Manipulation (Stop Hunt) – False breakouts trap traders.
3. Distribution (Trend) – Real directional move unfolds.
📊 Diagram 2: Market Maker Cycle
Accumulation → Manipulation → Distribution → Reversal
4. Time of Day Theory
Asian Session: Establishes a range/accumulation.
London Session: Triggers manipulation (stop hunts) and starts trends.
New York Session: Provides continuation or reversal.
📊 Diagram 3: Session Flow
Asian Range ──┐
│ London Breakout/Trap → Trend
└→ NY Continuation/Reversal
5. The Role of Liquidity & Stop Hunts
Stop hunts are not random. They provide liquidity for institutions.
Recognizing where retail traders place stops (above highs, below lows) gives
clues to where market makers will drive price before reversing.
📊 Diagram 4: Stop Hunt Zones
Previous High -- Liquidity Grab (Wick)
Previous Low -- Liquidity Grab (Wick)
Section 2: Market Structure (Pages 11–20)
6. Levels & Cycles
Market makers typically move price in three pushes:
Level 1: Initial move out of accumulation.
Level 2: Continuation move.
Level 3: Final push before reversal.
📊 Diagram 5: Three-Level Push
Level 1 ↑
Level 2 ↑
Level 3 ↑ → Reversal
7. Identifying Accumulation/Consolidation Zones
Tight Asian ranges often mark accumulation.
Look for sideways candles, small wicks.
These zones precede manipulation.
📊 Diagram 6: Accumulation Example
│ Tight Range │ → Leads to breakout
8. Understanding Stop Hunt Zones
Previous day high/low.
Session highs/lows.
Round numbers (00 and 50 levels).
9. Recognizing Trend Reversals vs. Continuations
Reversal: After 3 pushes in one direction, expect a new cycle.
Continuation: If cycle is incomplete, expect further pushes.
📊 Diagram 7: Reversal vs Continuation
Three pushes → M/W Pattern → Reversal
Two pushes → Continuation
10. Multi-Timeframe Analysis
Higher timeframe: Identify overall bias (Daily, 4H).
Lower timeframe: Spot entries and MM patterns (15M, 5M).
Section 3: BTMM Trade Setup (Pages 21–38)
11. Entry Models
M Formation (Double Top): Bearish reversal pattern.
W Formation (Double Bottom): Bullish reversal pattern.
Head & Shoulders Trap: Used in manipulation phase.
Stop Hunt Candles: Long wick candles breaking highs/lows before reversal.
📊 Diagram 8: M & W Formations
M = Double Top (Sell)
W = Double Bottom (Buy)
12. Confirmation Tools
13 EMA: Short-term guide.
50 EMA: Trend confirmation.
200 EMA: Strong trend filter.
TDI/RSI: Momentum divergence.
ADR: Helps identify daily exhaustion zones.
13. Trade Execution
Entry: After manipulation wick or M/W structure.
Stop Loss: Beyond stop hunt zone.
Take Profit: ADR levels or next level of cycle.
📊 Diagram 9: Execution Model
Stop Hunt → Entry → Target (ADR or Level)
14. Session-Specific Setups
London Open Trap: False breakout in first 2 hours.
New York Reversal: Price often reverses London move.
Asian Range Break: London session manipulates Asian highs/lows.
Section 4: Risk & Psychology (Pages 39–50)
15. Risk Management for BTMM
Risk 1–2% per trade.
Favor setups with 1:3+ risk-reward ratio.
Avoid overleveraging during high volatility.
16. Trade Psychology
Patience: Wait for clear manipulation before entry.
Discipline: Stick to rules, avoid chasing price.
Emotional Control: Accept losses as part of cycles.
17. Journaling BTMM Trades
Record session, setup, cycle stage, entry/exit, result.
Look for recurring mistakes and refine.
📊 Diagram 10: Trading Mindset Cycle
Patience → Execution → Review → Improvement
Section 5: Advanced BTMM Concepts (Pages 51–60)
18. ID50 Trades
Occur when price retraces to the 50% level of previous move.
High-probability setups with confluence.
📊 Diagram 11: ID50 Setup
Impulse → 50% Retrace → Entry → Continuation
19. Level Counting in Long-Term Cycles
Apply 3-level push theory across weekly cycles.
Watch for reversals after extended moves.
20. BTMM + Smart Money Concepts (SMC) Hybrid
Combine liquidity grabs (SMC) with BTMM stop hunts.
Use order blocks as confirmation for BTMM patterns.
21. False Patterns & MM Tricks
Fake M/W patterns before true reversal.
Induced breakouts to trap retail.
📊 Diagram 12: Fake Pattern Trap
Fake M → Stop Hunt → True W → Trend
Section 6: Final Toolkit (Pages 61–64)
22. Daily Checklist
1. Mark Asian session high/low.
2. Identify stop hunt zones.
3. Determine cycle level.
4. Confirm with EMA/TDI.
5. Plan entries and stops.
23. Example Trade Walkthroughs
(Include annotated charts in full version)
London stop hunt reversal example.
NY session reversal example.
📊 Diagram 13: Trade Walkthrough Example
Asian Range → London Stop Hunt → Entry → ADR Target
24. Common Mistakes to Avoid
Entering during accumulation.
Ignoring ADR limits.
Overtrading in one session.
25. BTMM Glossary & Quick Reference
ADR: Average Daily Range.
Accumulation: Sideways range before manipulation.
ID50: 50% retracement entry.
Stop Hunt: Market maker manipulation to grab liquidity.
End of Handbook with Diagrams
