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The Pattern - Notes PDF

The document provides an overview of key concepts in forex trading, including: 1) There are three trading sessions - Asian, London, and NYC - with Asian known for accumulating retail contracts. Key levels like initial high/low of the day are formed during Asian. 2) Market makers aim to work price levels within a 50 pip range using 3 pushes to trigger stops. Consolidation periods allow accumulation of long and short positions. 3) Patterns like the staircase pattern are identified using market cycles of 3 down/up levels against indicators like EMAs on different timeframes to determine trends and trade territories.

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Naraiel Ferrari
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0% found this document useful (2 votes)
4K views6 pages

The Pattern - Notes PDF

The document provides an overview of key concepts in forex trading, including: 1) There are three trading sessions - Asian, London, and NYC - with Asian known for accumulating retail contracts. Key levels like initial high/low of the day are formed during Asian. 2) Market makers aim to work price levels within a 50 pip range using 3 pushes to trigger stops. Consolidation periods allow accumulation of long and short positions. 3) Patterns like the staircase pattern are identified using market cycles of 3 down/up levels against indicators like EMAs on different timeframes to determine trends and trade territories.

Uploaded by

Naraiel Ferrari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Quick Questions
  • Market Cycle and Pattern
  • Pushes and Variations

Vice Forex

Naraiel Notes - Resume

Quick Questions – Basic Questions

There are 3 sessions: Asian Session; London


How many sessions are there?
Session; NYC session.

What Session is known for the accumulation of


Asian Sesson
retail contracts?

What is the I-HOD and I-LOD? Initial high of the day and Initial Low Of the day

What session are the above formed during? Asian Session

What is the ideal size of the Market Makers


50 pips
Spread?

What is Gap time? it is a empty spaces between two candles

When is Gap Time? During the transaction of session.

What Trades Set Up in Gap time? Brinks trade – 03:45 and 09:45;

What is an outside structure? Consolidation

How long will the dealer work the price level? 50 pips

How many pushes will the dealer use to trigger the


3 pushes
stop loss level?

What is a peak Formation High or Low? The highest price or the lowest price in a period
How many trade levels are? 3 levels

What are the two Dealers Trend Cycle? Intraday & Interday

What is the best chart to view the trading levels? 1H chart to see and 15 M to open position

Indicators: EMA 5 – 13 ; EMA 50/200; RSI and


What are condiments associated with the EMAs?
TDI , PIVOT

23 to 25 pips
What is recommended time stop?

What is the distance in pips for move to B/E? 20 pips

Where is the hard stop placed and why? ?


* We do mark our levels on
Market Cycle: The Pattern: higher timesframes (1H) in
order to “filter” high spikes.
It is a serie (complete set) of a 3 levels of fall and a It is the Market cycle with:
The entries are made on lower
3 levels of rise – This levels can be days, for timeframes (15M);
example. - Downtrend: MAAW;
The Market Cycle - Uptrend: WVVM * Safety trades are made on
levels 1;
generates our Pattern

Safe Trade
A1 – Level 1 Down
Figura 1 - StairCase Pattern V1 – Level 1 Up

What is Consolidation?

It is a period of time when the majority of retail tradres are opening


their positions! Also known as Outside Structure

Why a Consolidation exists?


Market Condition:
In order to accumulate contracts. Traders are taking long and short
These three condition will Consolidation position, Market Makers need this information to induce more
show where the pattern you positions and grab their money.

are. How do they do that?

Consolidation is swinging with a no net price after all. Market


Trap-False-Real makers create three moves:
So, we must understand
“In business, Market Condition are
these conditions in order to  TRAP: a move that goes with the trend (same direction)
characteristic and the situation of a particular
 FALSE: a move that goes againts the trend (diferente direction);
Market at a particular point of time. When a know where the trend is
 REAL: a move that goes with the trend (same direction);
company decides to launch a new product, going.
Market condition will tell how and when to Trend
The Trend:
enter into a particular Market.”
 Intraday: 3 pushes within 24 hours; Pull bakcs
 Interday: 3 pushes within 72 hours; Between Levels
 The Pattern: It has a PFH and PFL and
beetween them, we have three levels of drop
(trends) and two zones of consolidation.

 In order to identify where you are in


the pattern, you must see in what market
condition you are:

o Consolidation
o Trap-False-Move
o Trend

“Trend is a tendency for prices to move in a


particular direction over a período”

 Another tool that can help you is an INDICATOR:


o Indicator is a tool that help you to make a better judgment;
o Some indicator: RSI, TDI, PIVOT, Candle Stick and EMA;
LVL 01 Territory:
EMA 5 and EMA 13 cross the EMA 50
 EMA –Exponation Moving Average:
o In Our Chart, they will look like: LVL 02 Territory
o EMA 5: Yellow EMA 50 cross the EMA 200
o EMA 13: Red
o EMA 50: Blue LVL 03 Territory
o EMA 200: White EMA 200 cross the EMA 800
o EMA 800: Dark Blue

The Pattern is completed when in a Downtrend the PFH comes from


above EMA800 to PFL below EMA800 (Vice-Versa); To confirm that is
pattern is completing, the EMAS will FAN (SPREADING). Only Indicator.
PUSHES

From now on, we already know that From PFH to PFL, we have two zones of
consolidation and three trends;

We know either that in consolidation we have structure that is the TRAP-FALSE-REAL;


And we may see interday during the consolidation and beetween them we see interday move.

Moreover, it was viewed how to use EMA Crosses as a tool to indicate in which level
you are in the pattern.

Now we are going to add a new informations about the trend: “PUSHES”

Concept of Push:

01 – “A push is a new high/low from the previous day going in line with the trend. So from one
consolidation zone to the next there should be three pushes or three new highs/low.”
Jordanny L.

Push IS NOT:

 A new high that then falls into consolidation again – If the push comes back to
consolidation, it means that is a trap move or only chopping.
 an indicator: a push is not an indicator! Once you count it right, you know exactly
where you are in the trend.

Final:

A push is higher/lower price that moves in the direction of the trend and does not fall
back into consolidation. You have 3 consecutive pushes which form a level;
The pushes are done with INTERDAY MOVE. Since the pushes is to count levels in a trend and
there is three pushes beetween two consolidation, further, interday usually happens
beetween levels, so we may say that the pushes are made by interday move.

So, once you undestand the concept of a push, we can add new informations at our pattern:

The Pattern: It has a PFH and PFL and beetween them, we have three levels of drop (trends)
and two zones of consolidation. In each level, there is 03 pushes;

Variations of the Pushes: there are sometimes that there are 3 pulses in order to form 1 push.
It means that you going to see 03 pulses to make only one push.

 Gold Chart – 4H;

 You can see PFL goingo to


consodlidation lvl 1

 In Yellow: three pushes;

 In red with the White arrow: The


two pulses in order to form 1 push

 So, you may see 9 pushes from


one consolidation zone to another.

Some tips to mark:

 Mark them in 1H, 4H, 1D time frame;


 Start to mark from bottons;

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