TABLE OF CONTENTS

•
INTRODUCTION

•
RISK MANAGEMENT IS EVERYTHING

•
STRUCTURE

•
PREMIUM & DISCOUNT

•
SUPPLY & DEMAND ZONES

•
OB - ORDER BLOCK

•
1 – BULLISH ORDER BLOCK

•
2 – BEARISH ORDER BLOCK

•
BB - BREAKER BLOCK

•
1 – BULLISH BREAKER

•
2 – BEARISH BREAKER

•
FVG – FAIR VALUE GAP

•
LIQUIDITY

•
INDUCEMENT

•
QML = QUASIMODO LEVEL

INTRODUCTION

If you're reading this book, I'm going to assume that your small support
and resistance
strategies, retail patterns, and trendlines aren't cutting
in.Your might be wondering whether
anyone in the trading industry
actually makes money or whether it's just a scam. Because
you lose
almost every trade, you are probably at your wits end. Whether you go
in the long or
short direction, all you can see is RED! Trust me; I've
been there and know how it feels. From
repeatedly hitting my head
against my desk. Pondering, "Am I just a plain dumb shit? "What is
missing from this? Why aren't the others making money?

Permit me to define "us" as retailers. Retail includes big hedge funds,

smaller banks, and
traders like you and me who work from home on
their laptops. Now, who is the smart money?
Institutions and banks of
immense size. The central banks are the big banks, and they decide
where prices will go. When I say "Market Makers," I want you to know
that they are largely
driven by algorithms in this day and age.

The new Market Makers are the algorithms. This implies that they must
adhere to a set of guidelines, which is advantageous to us. This book
now focuses heavily on the forex
markets. I mostly trade forex, but I
also trade stocks and options.

Stocks and choices are essentially constrained by market interest.

According to my research,
Forex is not. The price is already set. Now
that might be an unpleasant reality, however I can
show you a few
instances of value responding and exchanging "to the pip" at specific
levels.
The megabanks and market makers are to blame for the lies
you've heard. Market makers can
make any kind of trend line or
pattern they want.

They can hold a stock or cash in combinations, they can move costs and grab up your stop misfortune. The
objective is to participate in and anticipate the likely movement by

determining when a significant price

change occurs. There will be times when the banks won't be involved, and there will also be times when it will
be obvious that they are. From now

on, I will refer to "they" as the "smart money."

RISK MANAGEMENT IS EVERYTHING

I'm sure you've heard this clich? Everything hinges on risk

management.

However, I haven't seen many people really get into this topic. When it
comes to
trading, this is actually one of the strongest statements. The
amount of money
you keep is more important in this game than how
much money you make. Give
that some time to sink in. As traders, we
naturally consider how much more we
can make and how much money
we couldspend. I’m sure that's the excitement that initially brought you
here.

The truth is that the players who actually succeed in this game
constantly evaluate risk. You
should not be asking yourself, "How much
money can I make from this trade?" instead. It
ought to be "How risky
is this trade setup?" instead. My objective is to make you see the
market
"ass-backwards," which refers to the opposite of what everyone else is
doing.
“Whenever you find yourself on the side of the majority, it is time
to pause and reflect,” as
Mark Twain aptly put it, “Where can I go in
the market where I have the least amount of risk?"
and "Where is this
trade invalid?" are important questions to ask yourself. How much am I
willing to put at risk to see if this trade is worth the money I put into it?
You are going to have
to constantly ask yourself these and other
questions. Now, everyone's risk tolerance is
different. It’s a good rule of
thumb to only take risks that you can handle losing.

You can use a tool I highly recommend at

https://www.myfxbook.com/en/forexcalculators/position-size to
effortlessly calculate risk and determine the
appropriate lot size.

Keep in mind that breaking even is always preferable to losing a trade. It doesn't matter if the price falls to
take your stop and fly in the direction you want. That occurs, and you must

realize that it was never a part of

your trading plan in the first place. It was not YOUR business. I promise there will be other deals, so let it go.

STRUCTURE

All that we exchange ought to be arranged toward brilliant cash. Price

is fractal,
indicating that it is a component of a larger, longer-term
movement. Savvy cash is
occupied with benefit, understanding that they
are simply going to collect a
situation at a markdown, and normally
during a time of solidification will assist you with recognizing where
they are wanting to carry on with work. They will test the market on
each side of the range during consolidation, wipe out everyone,
and then
raise prices during the "mark-up" phase.
They typically use this template to build a position, re-build it, and
mark up prices before
selling the longs to willing buyers at a higher
price. This is the standard "Buy Low, Sell
High" strategy. In its most
basic form, this is an auction involving wholesalers. Let’s say we
have
individuals who accumulate low-priced goods. In order to see if anyone
is interested,
they test the market by raising or lowering prices. They
can raise the price of the product
they own until they run out of stock if
they are aware that there will be buyers willing to pay
more.

The price can simply be found in one of the 3

phases below:
1. CONSOLIDATION

2. UPTREND

3. DOWNTREND

However, let's not get too complicated at this point. We must discuss the
fundamentals of this language, which begin with its structure. You can
get a good idea of where the market is
likely to go in the future if you
can read market structure. We always want to use a structure
with a
higher time frame in conjunction with a lower time frame. To put it
another way,
structure is the market's natural ebb and flow. Highs and
lows that are higher. You might already know this, but we need to go
over the fundamentals in order to establish the correct perspective.Look
at the bullish structure in the figure below.

Higher highs and higher lows represent bullish structure, whereas lower
highs and lower
lows represent bearish structure. When a market is
trending, it's best to trade and take
advantage of these trends'
continuations. When ought to our spider senses begin to tingle?
When
the structure begins to change. When our low is broken, the new high is
created.

An Example of Market making Series of Higher Highs, Higher Lows,

Lower Highs,
Lower Lows.

Understanding the market's structure is essential for any strategy you

use. If
you do not have a clear understanding of the structure of the
market, you will
invariably have difficulty comprehending the direction
of the market.

A market's technical structure is the one in which one primary position

—buyers
or sellers—holds the majority of the strength over time. This is
the market structure.

A crucial technical ability for determining the market's past and potential future actions is comprehending the
structure of the market.

Bullish Trend (Market Making Series of HIGHER HIGH & HIGHER

LOW)

Bearish Trend (Market Making Series of LOWER LOW & LOWER

HIGH)

PREMIUM & DISCOUNT ZONES:

Although it is not a novel idea, this one is extremely significant. You

should
always determine your price range. There are two possible
meanings when I
speak on range. A trading range or simply the high
and low of a consolidation
area can be created by comparing the
previous swing high to the previous swing
low.

When we consider premium and discount, entering a position at the

extremes of the range high or low always represents the lowest risk. In
addition, depending
on liquidity, entering a position either above or
below the range is ideal.
When price moved from a higher high to a
lower low or from a lower low to a
higher high in a trading market.
Using Fibonacci, mark the zone's high and low
points. Anything above
50% represents the premium zone, and anything below
50% represents
the discount zone.

In the Premium range, we look for sells at any price above 50%, and in
the
Discount range, we look for buys at any price below 50%.

Premium and limit can be utilized on any reach, and on any time span
assuming that you
know about different times outlines. Therefore, the
more successful you are at trading, the
simpler it will be for you to
expand your time frames and substantially reduce the size of your
stop
losses. Keep to the longer time frames for the time being until you can
handle the
others.

Above are the examples of Premium and Discount Zones

SUPPLY & DEMAND ZONES
The forex market's two most potent forces are supply and demand. The
number
of people buying a security on the market is called demand. The
number of
people selling a security on the market is called the supply.
When there is a lot of supply, the price goes down, and when there is a
lot of demand, the price
goes up. The price will continue to move
sideways as long as both forces are in
balance.

It is the most fundamental and crucial component for both fundamental

and technical
analysis. Understanding the forex market is dependent on
it. The primary advantage of S&D
in technical analysis is the ability to
precisely pinpoint the point at which banks begin buying
and selling.
How Supply & Demand Works?
In technical analysis, there are two types of states of a security's price

•
Balanced state

•
Unbalanced state

The price is moving in a range or sideways when it is balanced. Simply

means
that buyers' and sellers' forces are in balance. They are incapable
of
establishing either a bearish or a bullish trend. Price imbalance
occurs after
this sideways (range) movement breaks out. Additionally,
following the
breakout, the most recent range will be referred to as a
base zone, and the price
will once more move into this base zone to
select unfulfilled orders.
We can employ what they refer to as a RALLY,
BASE, and DROP based on SND.
Two or more bullish candles are
considered to be a RALLY.A BASE is regarded
as one bullish or bearish
candle, while a DROP is regarded as two or more
bearish candles. You
still need to use your trader's intuition to find obvious
swing points
despite thisformula. Let’s say we are experiencing higher highs
and
higher lows as a result of a bullish trend. However, even if you observe
two
up candles immediately followed by two down candles, this does not
necessarily imply that the area is a swing point. Find the major swing
points
that appear to be clear and obvious using your intuition.

We want to trade pairs with obvious structures when it comes to

structure.
Trading volatile markets is possible, but why put yourself in a
difficult situation? Trade only what makes sense, simplifying your
trading. Move on to
the next pair if nothing is obvious, or wait another
day.

The rally, base, and drop (RBD) can take many different forms. We possess the following:

RBD (Rally Base Drop)

DBR (Drop Base Rally)
DBD (Drop Base Drop)
RBR (Rally Base Rally)

Our BASE is the swing point, or just a singular candle and continuation
of either
a rally or drop.

ORDER BLOCK
Market Makers (banks) place their positions in candles known as Order
Blocks. Typically, the
market returns to those candles and never violates
them ("if they are really OB's").
There are 2 Types of Order Block
1. Bullish Order Block
2. Bearish Order Block

The Bullish Order Block is the last bearish candle before the bullish
movement, which Breaks the Structure Higher. It is the last down
candle
before the up move. Demonstrates a high likelihood of holding
the Price
when it returns.

The Bearish Order Block is the last bullish candle before the bearish
movement, or the last up candle before the down move. It breaks the
structure lower. Demonstrates a high likelihood of price stability when
the
price returns to its previous level.
BREAKER BLOCK

BEARISH BREAKER A bearish range or Down

Close candle in the most
recent Swing Low before an Old High is broken is called a bearish breaker
block. Buyers who buy this low and then see the Swing Low violated will
attempt to reduce their losses.
A bearish trade setup to consider is when price
returns to the swing low.
BULLISH BREAKER is a range that is bullish,
also known as an Up Close
Candle, in the most recent Swing High before an Old Low is broken. Sellers
who sold this low price will try to reduce their losses if the Swing High is
broken again. This is a bullish
trade setup to think about when price reaches
the swing high once more.
FVG– FAIR VALUE GAP
A Fair Value Gap is a price range in which one side of the market's
liquidity is offered. This
is typically confirmed by a liquidity void on
lower time frame charts in the same price
range.Price can actually
"gap" to create a real trading vacuum and post a price gap.
LIQUIDITY
The ease with which an asset or security can be converted into ready
cash without affecting
its market price is referred to as liquidity. To put
it another way, liquidity is the degree to
which an asset can be
purchased or sold quickly on the market at a price that reflects its true
value. There must be a buyer for every seller, and there must be a seller
for every buyer,
which means that someone must fulfill the order from
the opposite side or direction.
Forms of Liquidity / Liquidity Pools
Liquidity Pools are frequently the previous swing highs and lows, as
well
as the previous daily highs and lows; attempting to pair trades and
engineer liquidity in order to facilitate new price swings;

Additionally, it is described as an area likely to see a lot of orders.

-
Sell-side Liquidity Pool: are the lows where the Liquidity Providers'
Sell Pending Orders are.

-
Buy-side Liquidity: are the highs where the Liquidity Providers' Buy Pending Orders are.
INDUCEMENT
A type of liquidity known as inducement can be found close to
supplydemand or interest-area zones. Which in essence, retail traders
perceive as a
trap.
QML = QUASIMODO LEVEL

The Area of Entry will be between the High and Higher High as
mentioned in
above figure.

Last but not the least“RISK MANAGEMENT IS THE KEY

TOSUCCESS”