Based on Orderflow and Footprint logics

EBOOK ABOUT
TRADING
Written By

Muhammad Bilal
 CHAPTER #1 RIGHT MINDSET

CHAPTER #2 TECHNICAL STRATEGY

CHAPTER #3 MANAGEMENT
 5 Steps To Be A
Consistent
Profitable Trader
01 NEED A PROFITABLE EDGE
(TECHNICAL STRATEGY)

02 MECHANICAL PLAN (TECHNICAL

STRATEGY)

03 WORK ON YOUR MINDSET (RIGHT

MINDSET)

04 STRUCTURE YOUR LIFE IN

BALANCE WITH TRADING (RIGHT
MINDSET)

CONSISTENTLY EXECUTION
05 WITHOUT LOOKING IN RESULTS &
JOURNALING (MANAGEMENT )
 Chapter # 1
Right Mindset
Having Right Mindset And Correct Information About Trading And
How We Can Make Money Long Term In The Market Is Very
Important. So In This Chapter I Am Going To Give You The Right
Mindset And Right Set Of Information You Can Help You To Achieve
Your Goal.

First Of All We Need To Understand What Is The Trading & How It Is

So Different Than Investing. In Crypto Mostly People Invest Short
Term In Different Coins And Get Some Gain On Capital And Call
Itself A Trading. But In Trading We Buy Or Sell Some Financial
Securities For A Short Term Period To Earn Profit But We Take Our
Stop If We Got Wrong On Our Idea.
Spot Coin Investors Don't Sell When They Get Their Stop Loss They
Average Their Position DCA.
Our Mindset Has Been Programmed By Society In A

Very Specific Way To Become A Good Employee Or A Good Citizen But

This Is Ruining Your Ability To Become A Good Profitable Trader
Our Mind Is The Only Thing Which Is Responsible For Our Profitability in
Long Run

Most Of Trader Keep Refining Their Strategy And Think The Way We Can
Be Profitable But Its Not Their Strategy Its Their Mindset
We Are Going To Change Some Of Our Beliefs
PROCESS OF INPUT & OUTPUT
Working As Employee We Got Paid By Monthly And Hourly Bases
This Is How Market Works
But the Market Is Not Operating Like This. Don't Think Market
In Terms Of Monthly And Hourly Salary. The Market Doesn't
Care How Much Time You Are Putting In. It Only Pays When You
Are On The Right Side. We Are Not Judging The Market But We
Should Reshape The Idea Of Input & Output
As A Trader Initially In The Journey This Is Probably Going To
Work As Disadvantage Because Its Double Edge Sword
It Required A Lot Of Energy And Time In Market And You Are
Not Going To See Results Just Yet But Focus On Becoming The
Asset
As A Assert If You Start Working And Master Your System You
Are Going To Scale Up
Once You Become Assert You Are Going To Out Short Amount
Of Time And Can Get Big Advantage
SUMMARY : PROCESS & OUTCOME

You Have Zero Control Over The Market And Individual

Outcome
Focus On Developing An Edge Into Mechanical Plan
Focus On Edge (The Process)
Shift Outcome Based Thinking To Process Based
Its Leads To Build You Consistent Profitable Because You Focused
On What You Have Full Control
 REDEFINE WINNING & LOSING

We Have To Redefine the Concept Of Winning And Losing

Because Society Teaches Us Winning Is Good And We Have
Associated Winning With Good Pleasure
Some With Losing We Have Associated Losing With Bad Emotions.
We Feel Pain In Losing And Grace In Winning That's Why We Try To
Avoid Losing
But In Trading We Have To Redefine It
As A Trader We Are Trading A Probability Model And In Probability We
Have Both Winning And Losing. So To Win In Long Term We Have To Lose
As Well
We Have To Sum Losing And Winning In Order To Stick To Plan
Winning Is Good And Losing Is Bad We Get Greedy On Winning And
Fearful On Losing That's Why We Are Not Stick To Plan
The Traders Who Redefine Winning & Losing And Reshape Their Beliefs In
Their Mind. They Are Not Going To Addict With Wins And They Are Not
Trying To Avoid Losing The Are Neutral Of Outcome
They Embody Process-Based Thinking.
They Embody Process-Based And Long Term Thinking.
They Don't Care About The Outcome Of Their Next Trade

Summary: Redefining Winning & Losing

Redefine Losing To Ensure You Are Not Run By Fear
Redefine Winning To Ensure You Are Not Run By Greed
In Order To Be Consistent You Need To Learn How To Manage Fear And
Greed By Redefine Winning And losing So That You Can Stick To Your Plan
 Chapter # 2
Technical Strategy
The First Thing In Technical Analysis Is To Find Out Our Point Of
Interest In Market
As A Trader We Cannot Take Part In Any Move Without Any Context
Without Any Idea
So We Must Have Some Sort Of POI On Charts To Take Part In
Market.

So The Question IS Here How We Can Find Out For POIs How We Can
Get Some Levels On Charts

The First Section In Technical Strategy Is All About Levels

1: Levels (POI,s)

To Find Out Our Levels We Need To Understand Where Market

Traded Most Of Its Volume On Previous Price Action.
For That We Are Going To Use Volume Profiles. The Main One FRVP

You Don't Need To Buy Tradingview Premium For Visible Range &
Session Profiles We Can Use FRVP To Get All Information.

So Let's First Understand All The components Of Volume Profiles

These Are Some Main Components In Volume Profiles
Lighted Area: Value Area Its The Area Where 70% Of The Volume Traded
WE Can Change The Setting But 70% IS Default That I Use
Dark Area: Its The Area Where The Least Volume Traded. We Can Say At
That Range No One Was Interested To Spend Its Volume
Red Line: Point Of Control AKA POC This Is The Highest Volume Node
VAH: Value Area High Is The High Of Value Area Range
VAL: VAlue Area Low Is The Low Of the Value Area Range
POC: Point Of Control Is The Highest Volume Node With In Profile

VAH,. VAL, POC Are The Three Main Key Levels In Volume Profile These Are Going
To Work Like A Support & Resistance.

Further You Will See Some Examples

Now You Can Have A Question How I Can Use Volume Profile On Chart.

There Are Mainly Three Ways To Use Volume Profiles To Get Some Levels On
Charts.

The Range Method:

Previous Range Method:
Session Method:

Now I Will Explain You These Method One By One

The Range Method:

EXTRA: 70% Time Market Stays At Range Because The Big

Players Keep Price At Range To Fill Out Their Big Positions.
They Accumulate In Ranges And They Distribute In Ranges.
And only 30% Of The Time Market Stays In Trend

So That's Why Understanding The Ranges Are So Important

When Market Puts Its Initial High & Low After Impulsive Move
There The Range Started
SO You Can Put Your FRVP On The Start Of The Range To Its
Present Time.
VAL, VAL Of The Current Range Are Going To Work Like Imp
Support & Resistance

As The Price Action Will Added To Chart Then You Need To

Extend Your Profile And Then You Will Notice Your Levels Are
Getting Change Because Of You Are Adding Price Action To It
I Mainly Use This Concept On HTF To Get Volume Support &
Resistances So That We Can Use It On LTF For Intraday Setups

Previous Range Method:

Now Let's Understand The Previous Range Method. In Previous Range

Method We Are Going To Use Our Previous Ranges As We Know Market
Moves Range To Range
When Market Leaves Its Range And The Old Range Becomes Previous
Range Now We Can Put FRVP On Old Range To Get Levels.

Previous Range POC, VAL, VAH ARe Going To Work Like Support &
Resistance
 Session Method:
We Can Use Our Sessions To Get Our Levels. Here I
Am Not Talking About Intraday Sessions Asia,
London, NY . I am Talking About Major Sessions
Like Daily Session, Weekly & Monthly Session
We Can Put FRVP On Previous Complete Session To
Get Our Previous Session VAH, VAL, POC.
I Also Use To Mark Session Open & Previous
Session High & Low
Session Open Is An Important Level For Us & Institutions
Below And Above That Level We Can See Accumulation &
Distribution

This level Session Open Also Work Like A Good Support

& Resistance
If You Want To Mark Daily Levels First You Need To Go
On Daily Time-Frame And Then You Need to Select FVRP
And Put It On Current And Previous Candle.
You Just Only Need To Select Current & Previous Candle
After That You Need To Shift On Lower Time-Frame.
There You Can Mark Your Previous Day VAH, VAL, POC,
PD High PD Low And Current Session Open.
And The Same Approach You Need To Follow For Previous Week & Previous Month
Levels
This Is How You Can Mark Out Your Daily Weekly & Monthly Levels.

You Can Also Save Your Levels In Object Tree In Folders

You Also Need To Use BTCUSD.P Bybit Chart For Levels And Order-Flow.
 FIBONACCI TOOL:
I Also Use Fib Tool To Get My Point Of Interest. The Idea Is Here That I Want To
Added Up Multiple Confluence. Like Let Say I Have Daily Level As My Point Of
Interest And Fib Level IS Also Aligning Up There So It Gives Extra Context For My
Idea.
Now Let's Talk About How We Can Use Fib And How We Can Understand Fib Concept.

In Order To Understand Fibonacci Just Understand Premium & Discount Concept.

We Love To Buy Something Always In Discount Prices
& Also Good To Sell At Premium Prices

So Fib Tool Help Us To Get Premium & Discounted Prices

If Market Is Bullish & You Want To Buy Or Long The You Need To Put Fib From Low To
High For Discounted Prices.
NOTE: Keep In Mind 0.5% Level In Feb Is The Neutral (Below 0.5% Is
Discounted Levels & Above 0.5% Are Premium Levels )
If Market Is Bearish & You Want To Sell Or Short Then You Need To Put
Fib From High To Low For Premium Prices.
The Important Levels I Use Is 0.618, 0.701, 0.786

Now You Have a Question Which High & Low I Should Use Levels. I Use
Every Swings High & Low For Fib Levels To Add Up With Others

MY TEMPLATE:
The Way I Use Fib With Other Levels

Now Let's Move To The Next Topic

 VWAP INDICATOR:
Volume Weighted Average Price Is An Amazing Indicator That I Use For
Intraday Trading.
VWAP Line Itself Works Like Support & Resistance And Magnet To The
Price. If Other Levels Are Adding Up With VAWP Than That's A Good
Thing. We Can Build a Good Game Plan.
Previous Day Vwap Close Also Works Like A Good Level
 SESSION
Now Let's Talk About Intraday Sessions. As A Day Trader I Know That I
Cannot Sit All Day On Charts For Trade SAo I Have My Custom Time Period For
Executions. I Mostly Use London & New York Time To Execute My Trade. I Have
Backtested And I Also Shared My Crypto Killzone On Youtube
There Are 4 Sessions In Crypto
Asia
London
New York
Close
You Can Check Out ForexFactory For Times And Can Easily Setups Your
Indicator According To Your Country & Time
I Also Use Sessions Highs & Lows As A Liquidity. You Can Read In Next Chapter
About Liquidity
 LIQUIDITY
This Is The Most Important Chapter.
In This Chapter You Will Learn How You Can Spot Liquidity. How You Can Trade Liquidity Sweep
AKA Swing Failure Pattern

What Is Liquidity?

Liquidity Is The Fuel Of The Market. If Market Is Moving From Price A to B Then The Reason Is
Liquidity.
Mostly People Take Liquidity As Stop Orders By Retails. That's Not The True Thing About
Liquidity. Liquidity Is Everywhere In The Market. Liquidity Are The Orders Passive & Active
Provided By Traders.
We Can't Say Stops Are The Liquidity.
How Actually Market Moves Based On Liquidity?

Market Is The Simple Auction. In Market Price Is The Product Which Advertises On Different
Levels. And Where Participants Find More Reasons To Transact. Price Reaches There.
There Are Two Type Participants
Active: Who Transact At Market Price
Passive: Who Puts Limits

And Market Moves Based On Market Orders

Types Of Liquidity
Levels Where Most Of Participants Gets Interested
Swings
EQ Highs Lows
Internal Liquidity
Sessional Liquidity
Swings:
Swings Are The Most Common Place Where Traders Put There Stop Limit Orders . Swings Are
The Major Highs & Lows On The Chart That Can Be Easily Point Out.
 EQ HIGHS LOWS

Equal Highs & Lows Are Some Areas In Price Where Most Of Traders Put Their Stop
Orders And Open Their New Positions As A Retest.
Market Takes Out Their Liquidity
 INTERNAL LIQUIDITY

A Lot Of Time When We Look For Major Liquidity To Be Taken Out But Marke
Only Takes Internal Liquidity And Move On.
So For Internal Liquidity I Use An Indicator Called Pivotal Movement

I Usually Look For Gap Between The These Price Level

 SESSION LIQUIDITY
Now Let's Talk About Session Liquidity. Intraday Sessions Highs & Lows
Works Very Well As A Liquidity. At The Top & Bottoms Of Sessions Like Asia,
London, NewYork And Close We Can Take Our Trade Based On Liquidity
Sweep
 SFP Swing Failure Pattern:
Swing Failure Is Basically The Liquidity Sweep In Second Named. When
Market Takes Out Liquidity Of Highs And Lows we Called It SFP

Now You All Can Get Your Levels on Charts If You Want To Know How Market
Is Working On Your POI Then You Need To Give Time To The Market And You
Need To Journal The Moves As Well.
Within 60 Days You Will Have A Lot Of Experience And Understanding Of
Market
2: CONFORMATION OF LEVEL (FOOTPRINTS, ORDERFLOW )
Now We Can Find Out Our Levels Using Volume Profiles & Some Price
Action Stuff.
Let Say We Have Our Point Of Interest For Today And Price Is At Our
POI If We Want To Enter We Need To Look For Conformation
We Are Going To Get Our Conformation On Level Using Order flow &
Footprints.
Looking At Order flow & Footprints Is Like Looking At The Current
Volume That Participants Are Transacting.
We Use To Look For Absorption & Exhaustion Of Participants On Our
Levels For Conformation

I Usually Don't Use Heatmaps & DOM For My Intraday Trading.

 HEATMAPS

If You Don't Know What Are Heatmap Charts. Heatmaps Shows Us Pending Limit
Orders On Chart But There Is The Big Problem With Heatmaps. There Are Many
Bots & Players Who Put Their Orders To Attract The Market When Market Reaches
There They Pull Out And Create Imbalance In The Market This Process Can Be
Called Spoofing.
 DOM (DEPTH OF
MARKET)

We Can Use DOM For Our Entry Executions But I Don't Use That But If You Are Trading
With High Frequency Then You UseThe Concept Of Pulling And Stacking For Short Term
Scalps
 FOOTPRINTS

Now Let's Talk About Footprints I Use Footprint Charts For My Entry
Execution And For Conformation On My Levels.
Footprint Charts Shows Us Executed Orders In The Candle So WithThe
Help Of Footprints We Can Look For Absorption & Exhaustion Of
Participants
Let's understand Footprint Charts Step By Step
 FOOTPRINT CLUSTER MODE & TEXT TYPES

There Are Different Types Of Cluster Modes In Footprints We Can See And Can Get A Lot
Of Information. Cluster Modes Means How The Candles Look Like And What Sort Of
Information We Are Going To Get.
Volume Profile: Each Candle Will Be Like Volume Profile
Delta Profile: Each Candle Will Be Like Delta Profile

Volume Cluster: Each Candle Will Be Like A Be Divided By Nodes According To Tick Size
And We Will Be Able To See Where Heaviest Volume Transacted
Delta Cluster: Each Candle Will Be Like A Be Divided By Nodes According To Tick Size
And We Will Be Able To See Where Heaviest Buy And Sell Orders Transacted
 TEXT-TYPE:

The Numbers We See In The Clusters Are By Text Type We Can Adjust According To
Our Need

If You Want To See Volume Than You Can Enable It If You Want To See Imbalances
The Best Setting You Can Do Is OI Based Text Type These Give Us A Lot Of
Information .
 VOLUME

Understanding the volume is very important. Volume is the number of contracts traded by
buyers and sellers. Spike in volume is very important whenever we observe more than
average volume at a specific level then its indication that both buyers and sellers agree to
make the transaction. We can observe the volume candle by candle and also within the
range.
We Can See The Volume Of An Individual Candle As Whole Range In Footprint Bar
 Delta

Delta Is The Real Volume The Session When We Subtract Sell Volume By Buy Volume
We Get The Real Volume That We Use To Call Delta
Now There Is 2 More Terms:
Max Delta: The Extreme Buy Delta That Goes With In Session
Min Delta : The Extreme Sell Delta That Goes With In Session
If We Compare Min & Max Delta With Real Delta There We Can See Extended Delta
Means Absorption Happens With In Session
We Can See These All Info In Our If Not Available We Can Get Into Setting Of Our
Statistics Bar
 Cumulative Volume Delta AKA CVD
CVD Is An Important Tool To Get The Idea Of Absorption & Exhaustion. We Use To Look For
Delta In Statistics Bar But What If We Add All The Delta Of Candles And Get The Average
Delta And Start Complaining That Value With Price
This Is All CVD Is About
CVD Is An Amazing Tool If We Observe The Price With Our CVD Line We Can Get A Lot Of
Information For Our Game Plan
 OPEN INTEREST
Open Interest (OI) is a number that tells you how many contracts are
currently outstanding (open) in the market. When Open Interest Increase It
Means New Positions Are Getting Into Market When OI Decrease It Means
Positions Are Getting Close
Alone OI Can Give Us A Lot Of Info About Market But If We Add Price And OI
Together Than We Can Get A Lot Meaningful Information
We Can See A Specific Tool Named Open Interest In Our OF Data Feed
Software
This Is How You Can Use OI In Relation With Price
There Are Two More Tools Named With Net Long & Net Short. Keep In
Mind These Are Just Testing Indicators It Did Not Give Us Real Info.
 TIME PRICE OPPORTUNITY CHARTS AKA TPO
The Chart We Use For Trading On Tradingview Have Only Two Things Price
Over X-Axis And Time Over Y-Axis
We Put A Lot Of Things To Understand The Price Movement But The Time
Factor We Don't Pay Attention To It.
So To Understand Where The Most Of Time Price Traded We Use TPO
Profiles.
Let Say You Check The Price Of iphone Daily Let Say You Want To Buy. And
You ARe Checking The Price For Last 30 Days And It's Been Trading At
1000$ But One Day You See It On 800$ Than Now You Will Buy.
Reason Is Here That Here Got Out Of The Time Trading Range Now It Will
Get Back To That Range Here Is Opportunity To Buy iphone
We Use TPO Profiles For Daily & Intraday Session Like Asia, London ETC
In TPO We Have 30 Mins Candles One 30M Candle Is Represented By
Single Alphabet Letter
If We Open This TPO Profile Then Below You Can See All 30M Candles

Important Things In TPO Profile That You Must Need To Understand

The Top Of The Profile Selling Tail Either Poor High
The Bottom Of The Profile Buying Tail Either Poor Low
Single Prints
Their Is Also Many Other Concepts But These Above You Must Need To
Understand
 BUYING & SELLING TAILS
At The Bottom And Top Of The TPO Profile There We Can See Buying
Tail & Selling Tail. There Is Setting In TPO Profile That You Can Enable
To See BT And SL.

As You Can See In The Picture At The Top And Bottom You Can See Blue Box
With BT And S.
We Just Need 3 TPO Boxes At Top And Bottom To Form Poor High And Low
BT And SL Means Price Reaches Their And No One Was Interested To
Transact Their You Can Also See Low Volume Aside Volume Profile. That
Means We Have Proper High Of The Day And Low Of The Day This Same
Concept Can Be Implemented On Session TPOs.
 Poor Highs & Lows.
Sometimes We Don't Have Buying Or Selling At The Top And Bottom
Of The Profile Then There Is Poor High OR Poor Low.
If We Don't Have 3 TPO At Top Or Bottom Then That's Our Poor High
Or Poor Low.
Technically It Means Their Is Volume In At The Low Where Market
Wants To Transcat So If We Have Poor High Or Low Then We Can
Target These Because These Works Like A Magnet
 SINGLEPRINTS:
Single Prints Are The Zones Within The TPO Profile In Which The
Market Traded Only One Time.
These Zones Works Like A Support And Resistance But If Market Get
Accepted Into That Zone Then High Probability Is That Is Going To Fill
We Also Need 3 TPO At A Time For That Zone
 Dynamic Profile:

There Is A Tool In EXO Called Dynamic Profile. That you Can Use On Ay Price
Action To Get Overall Data
We Can See Open Interest
We Can See The CVD
We Can See Overall Volume Traded
Then We Can Compare OI With CVD To See Do We Have More Long Shorts.
What Is Happening With In The Price Action
 NAKED POC
Here I Also Want To Touch Naked POC Concept. When Ever We Mark
Our Sessional Levels Like Daily, Weekly Or Monthly.
Let Say we Have Our PD Poc And That POC Didn't Get Tested That Day
Next Trading Day When We Will Adjust Our Levels That PdPoc Will Be
Our Naked POC And Npoc Stays On Charts Until It Got Tested
And That Same Concept Is For All Npocs
Mostly I Use Daily, Weekly And Monthly NPOC. I Also Use 30M Npocs As
A Strong Level . I Am Also Testing Out 4h Npocs And Will Share My
Statistics

Give The Time To The Market First You Will Get Alot Of Thoughts
Like This Is Possible And That's POI Is There. But You Just Need To
Give Time And Automatically You Will Start Getting The Idea Of
Market.
 Chapter # 3
Management
In This Section We Are Going To Understand
How We Can Position Size
How We Can Manage Our Money
How We Can Manage Our Trade
And Most Important Trading Journal
Position Sizing: Position Sizing Is Very Important. It's All
About Understanding How Much Quantity Or Size You Need
To Open Position To Risk Specific Percentage In Trade. You
Can Try Different Online Tools To Get Your Position Size
Managing Money:
I Personally Have a Rule To Only Lose 2% A Day. I Have A Loss
Limit Of 2%. I Don't Want To Lose 2% A Day. But If I Lose 2%
Daily Then It Will Take Me 50 Days To Lose Everything That's
Probability Is Too Low According To My Statistics.
Managing Trade: I Only Go With 1:2 But If You Want To Hold
The Trade Then Put Breakeven At 1:2 And Hold Till There You
Want. But If You Want To Develop Your Own Management
System Then You Need Time And Statistics For That.
Trading Journal: Journaling The Trades Are Very Important
Your Daily Report Card Is Very Important.
Only With Journaling You Can Get Your Statistics And Can
Able To Point Out Your Problems. And The Journaling Is The
Only Way To Save Your Experiences In Market
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