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Strat E-Book

The document discusses the MoveWithMarket trading strategy (the Strat). It relies on candlestick formation and price action analysis over different time frames. The Strat analyzes consolidation, directional, and range expansion candlestick patterns to identify high probability continuation and reversal trade setups. It provides traders a simple yet comprehensive approach to entries, exits, and stop losses.

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justin
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© © All Rights Reserved
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100% found this document useful (11 votes)
12K views61 pages

Strat E-Book

The document discusses the MoveWithMarket trading strategy (the Strat). It relies on candlestick formation and price action analysis over different time frames. The Strat analyzes consolidation, directional, and range expansion candlestick patterns to identify high probability continuation and reversal trade setups. It provides traders a simple yet comprehensive approach to entries, exits, and stop losses.

Uploaded by

justin
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
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www.movewithmarket.

com

THE STRAT
| [email protected]

CREATED BY:
TTRADES & GERB TRADES

MOVE WITH MARKET TRADING AND EDUCATION

LEARN, PRINT, REPEAT


YOU HEREBY UNDERSTAND AND ACCEPT THAT YOU

DISCLAIMER
ARE SOLELY RESPONSIBLE FOR ANY ACTION, OR
DECISION TAKEN BY YOURSELF IN REGARD TO
INVESTING, TRADING, OR INVESTMENT-RELATED
STRATEGIES PERFORMED BY YOU.
THE CONTENT AND INFORMATION POSTED BY THE
MOVE WITH MARKET TRADING & EDU TEAM ON BOTH
OUR DISCORD AND OUR WEBSITE ARE NOT
INVESTMENT ADVICE OR RECOMMENDATIONS TO
BUY, HOLD, OR SELL SECURITIES. WE ARE NOT LIABLE
TO AUTHENTICATE THE CONTENT AND/OR
INFORMATION THAT HAS BEEN POSTED ON OUR
WEBSITE, WEB-SERVER, SOCIAL MEDIA, OR ANY
OTHER FORM OF COMMUNICATION THAT OUR TEAM
SHARES CONTENT THROUGH. INFORMATION
PROVIDED BY THE MOVE WITH MARKET TRADING &
EDU TEAM IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND IS OBTAINED FROM
SOURCES THAT ARE BELIEVED TO BE RELIABLE.
INFORMATION IS IN NO WAY GUARANTEED AND
ADDITIONALLY, THE ACCURACY AND LEGITIMACY OF
INFORMATION PROVIDED IS NOT CROSS-CHECKED...
NO GUARANTEE OF ANY KIND IS IMPLIED OR
POSSIBLE WHERE PROJECTIONS OF FUTURE
CONDITIONS REGARDING SECURITIES ARE
ATTEMPTED. 2
T H E S T R A T

MODULES
(1) WHAT IS THE STRAT? 5
(2) CANDLESTICK FORMATION & NUMBERS 7
(3) STRAT COMBOS 11

TABLE OF
(4) ENTRIES AND EXITS 32
(5) STOP LOSSES 36
(6) TTO 39

CONTENTS (7) TIME FRAME ANALYSIS


(8) TIME FLIP
(9) INTRADAY STRATEGY
41
44
46
(10) SWING STRATEGY 48
(11) BROADENING FORMATIONS 50
(12) PMG 52
(13) COMBINATION WITH TRADITIONAL TA 54
(14) INTRADAY EXAMPLE 56
(15) SWING EXAMPLE 59
T H E S T R A T

WHAT IS THE
STRAT
MODULE 1

INTRODUCTION

M W M
4
WHAT IS THE STRAT?

CREATED BY RELIES ON FEATURES SIMPLIFIES

ROB SMITH; FORMER FLOOR PRICE ACTION AND TIME FRAME COMPREHENSIVE CANDLESTICK TRADING FOR NEWCOMERS AND
TRADER WITH 20+ YEARS OF ANALYSIS. PLAY WITH THE TREND, COMBINATIONS FOR TRADE ENTRY, EXPERIENCED TRADERS ALIKE
EXPERIENCE NOT AGAINST IT EXIT, AND STOP LOSS

5
WHY USE THE STRAT?
OVER TRADITIONAL TECHNICAL ANALYSIS

COMPREHENSIVE CONSISTENT

SIMPLE, NO INDICATORS A PROVEN STRATEGY


NEEDED, EXECUTE WITHOUT MINIMIZING FAKE OUTS AND
SECOND GUESSING REDUCES TRADING STRESS

VERSATILE PROFITABLE

WHETHER A SCALP, CLEAR TARGETS TO TAKE


DAYTRADE, OR SWING, THE PROFIT AND EXIT ON
STRAT WORKS ON ALL TIME WINNINGS TRADES
FRAMES 6
T H E S T R A T

CANDLESTICK
MODULE FORMATION AND 2

NUMBERS

M W M
7
CANDLESTICK FORMATION
HIGH

CLOSE
BULLISH CANDLE
CANDLESTICK
• PRICE IS MOVING UP
ANATOMY BODY
• PRICE CLOSED HIGHER
THAN IT OPENED
OPEN

LOW
CANDLESTICK FORMATION IS EASY TO LEARN YET A
CRUCIAL CONCEPT TO GRASP. TRADERS MUST
UNDERSTAND THE ANATOMY OF A CANDLESTICK TO HIGH

LEARN THE STRAT.


OPEN BEARISH CANDLE
• PRICE IS MOVING DOWN
BODY
CANDLESTICKS CAN CAPTURE • PRICE CLOSED LOWER
THAN IT OPENED
VARIABLE TIME PERIODS
CLOSE

FOR EXAMPLE: LOW


ONE CANDLE COULD EQUAL: 1 8
MINUTE ELAPSED, 5 MINUTES
ELAPSED, 1 DAY ELAPSED, ETC
TYPES OF CANDLES
DOJI HAMMER SHOOTER
• A DOJI REPRESENTS INDECISION BETWEEN • A HAMMER REPRESENTS BULLISH • A SHOOTER REPRESENTS BEARISH
BUYERS AND SELLERS PRESSURE PRESSURE
• NO ONE IS IN CONTROL • BUYERS ARE TAKING CONTROL • SELLERS ARE TAKING CONTROL

HIGH HIGH HIGH HIGH


HIGH HIGH

CLOSE OPEN

BODY BODY

CLOSE OPEN CLOSE


OPEN
BODY BODY
CLOSE OPEN
OPEN CLOSE
BODY BODY

OPEN CLOSE
LOW LOW LOW LOW
LOW LOW

9
STRAT CANDLE NUMBERS
CONSOLIDATION

INSIDE BAR DIRECTIONAL BAR OUTSIDE BAR

• FAILS TO BREAK THE HIGH • BREAKS THE HIGH OR • BREAKS THE HIGH AND
OR LOW OF THE LOW OF THE PREVIOUS
CANDLE
LOW OF THE PREVIOUS DIRECTION
PREVIOUS CANDLE CANDLE

• REPRESENTS • REPRESENTS • REPRESENTS RANGE


CONSOLIDATION DIRECTIONAL MOVEMENT EXPANSION

RANGE EXPANSION

or

10

DOES NOT MATTER COLOR OF CANDLE


T H E S T R A T

STRAT
COMBOS
MODULE 3

M W M
11
STRAT COMBOS
OPTIMAL CANDLESTICK COMBINATIONS TO ENSURE HIGH PROBABILITY TRADES.

THE [1] CONSOLIDATION, [2] DIRECTIONAL, AND [3] RANGE


EXPANSION CANDLES FORM VARIOUS, EASY TO UNDERSTAND
COMBINATIONS. THIS ALLOWS TRADERS TO UTILIZE FORMING
TRENDS AND PRICE ACTION TO ENTER HIGH-PROBABILITY, LOW-
RISK TRADES.

OUR FAVORITES 12
CONTINUATION WHAT IS A
REVERSAL?
OCCURS WHEN PRICE MOVES IN THE
OPPOSITE DIRECTION IT PREVIOUS TREND
BULLISH CONTINUATION BEARISH CONTINUATION

BEARISH REVERSAL BULLISH REVERSAL

WHAT IS A
CONTINUATION?
OCCURS WHEN PRICE CONTINUES IN THE
SAME DIRECTION AS PREVIOUS TREND REVERSAL

13
2-2 BULLISH ✓ 2-2 BULLISH CONTINUATION

CONTINUATION
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) UP
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) UP
3-1-2 BULLISH CONTINUATION
ENTRY 3-1-2 BEARISH CONTINUATION
3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ GREAT FOR CONTINUATION PLAYS
1-3 BEARISH REVERSAL STRAT
+ STAYING IN PLAYS
+ ENTER CURRENT TREND
+ EASY TO RECOGNIZE
- CAN LEAD TO FAKE OUTS MORE OFTEN THAN OTHER COMBOS

14
2-2 BEARISH 2-2 BULLISH CONTINUATION

CONTINUATION
✓ 2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) DOWN
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) DOWN
3-1-2 BULLISH CONTINUATION
3-1-2 BEARISH CONTINUATION
3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS ENTRY
1-3 BULLISH REVERSAL STRAT
+ GREAT FOR CONTINUATION PLAYS
1-3 BEARISH REVERSAL STRAT
+ STAYING IN PLAYS
+ ENTER CURRENT TREND
+ EASY TO RECOGNIZE
- CAN LEAD TO FAKE OUTS MORE OFTEN THAN OTHER COMBOS

15
2-2 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION

✓ 2-2 BULLISH REVERSAL


2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) DOWN
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) UP
3-1-2 BULLISH CONTINUATION
ENTRY
3-1-2 BEARISH CONTINUATION
3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ VERY COMMON ON ALL TIME FRAMES
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR QUICK TRADES (DAYTRADES & SCALPS)
- MAGNITUDE OF GAINS CAN BE SMALL AS REVERSAL MAY NOT
SUSTAIN

16
2-2 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL

✓ 2-2 BEARISH REVERSAL


3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) UP
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) DOWN
3-1-2 BULLISH CONTINUATION
3-1-2 BEARISH CONTINUATION
3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS ENTRY
1-3 BULLISH REVERSAL STRAT
+ VERY COMMON ON ALL TIME FRAMES
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR QUICK TRADES (DAYTRADES & SCALPS)
- MAGNITUDE OF GAINS CAN BE SMALL AS REVERSAL MAY NOT
SUSTAIN

17
3-2-2 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL

✓ 3-2-2 BULLISH REVERSAL


3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) DOWN
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) UP 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
ENTRY 1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ EARLY ENTRY INTO LARGER MOVE
- PRICE MAY BECOME TRAPPED IN PREVIOUS OUTSIDE BAR (3)

18
3-2-2 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL

✓ 3-2-2 BEARISH REVERSAL


2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) UP
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
ENTRY
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ EARLY ENTRY INTO LARGER MOVE
- PRICE MAY BECOME TRAPPED IN PREVIOUS OUTSIDE BAR (3)

19
2-1-2 BULLISH 2-2 BULLISH CONTINUATION

CONTINUATION
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL

✓ 2-1-2 BULLISH CONTINUATION


2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) UP
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


ENTRY
• A DIRECTIONAL BAR (2) UP 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ ALLOWS ENTRY DURING MOMENTUM, NOT CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR SAFE ENTRY INTO ESTABLISHED TREND
- RISK OF TURNING INTO AN OUTSIDE BAR (3) RESULTING IN A 1-3
REVERSAL

20
2-1-2 BEARISH 2-2 BULLISH CONTINUATION

CONTINUATION
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION

IDENTIFYING ✓ 2-1-2 BEARISH CONTINUATION


2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) DOWN
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
ENTRY
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ ALLOWS ENTRY DURING MOMENTUM, NOT CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR SAFE ENTRY INTO ESTABLISHED TREND
- RISK OF TURNING INTO AN OUTSIDE BAR (3) RESULTING IN A 1-3
REVERSAL

21
2-1-2 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
• A DIRECTIONAL BAR (2) DOWN
✓ 2-1-2 BULLISH REVERSAL
2-1-2 BEARISH REVERSAL
FOLLOWED BY
AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION
• ENTRY
FOLLOWED BY 3-1-2 BEARISH CONTINUATION
• A DIRECTIONAL BAR (2) UP 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ OFFERS LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ ENTER AT BEGINNING OF MOVE
+ ENTER AFTER CONSOLIDATION NOT DURING
- RISK OF TURNING INTO AN OUTSIDE BAR (3)

22
2-1-2 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• A DIRECTIONAL BAR (2) UP
FOLLOWED BY ✓ 2-1-2 BEARISH REVERSAL

• AN INSIDE BAR (1)


3-1-2 BULLISH CONTINUATION
ENTRY
FOLLOWED BY 3-1-2 BEARISH CONTINUATION
• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ OFFERS LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ ENTER AT BEGINNING OF MOVE
+ ENTER AFTER CONSOLIDATION NOT DURING
- RISK OF TURNING INTO AN OUTSIDE BAR (3)

23
3-1-2 BULLISH 2-2 BULLISH CONTINUATION

CONTINUATION
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3) UP
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• AN INSIDE BAR (1) ✓ 3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


ENTRY
• A DIRECTIONAL BAR (2) UP 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ ALLOWS ENTRY DURING MOMENTUM, NOT CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR SAFE ENTRY INTO ESTABLISHED TREND
- RISK OF TURNING INTO AN OUTSIDE BAR (3) RESULTING IN A 1-3
REVERSAL
- RISK OF CHOP WITHIN OUTSIDE BAR (3) RANGE

24
3-1-2 BEARISH 2-2 BULLISH CONTINUATION

CONTINUATION
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3) DOWN
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION

FOLLOWED BY ✓ 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
ENTRY
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ ALLOWS ENTRY DURING MOMENTUM, NOT CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
+ GREAT FOR SAFE ENTRY INTO ESTABLISHED TREND
- RISK OF TURNING INTO AN OUTSIDE BAR (3) RESULTING IN A 1-3
REVERSAL
- RISK OF CHOP WITHIN OUTSIDE BAR (3) RANGE

25
3-1-2 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3) DOWN
2-1-2 BEARISH REVERSAL
FOLLOWED BY
AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION
• ENTRY
FOLLOWED BY 3-1-2 BEARISH CONTINUATION
• A DIRECTIONAL BAR (2) UP ✓ 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ OFFERS LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ ENTER AT BEGINNING OF MOVE
+ IF RANGE OF OUTSIDE BAR (3) IS CLEARED, OFFERS A
CONTINUATION PLAY
- RISK OF TURNING INTO AN OUTSIDE BAR (3)

26
3-1-2 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN OUTSIDE BAR (3) UP
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• AN INSIDE BAR (1)
3-1-2 BULLISH CONTINUATION
ENTRY
FOLLOWED BY 3-1-2 BEARISH CONTINUATION
• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL

✓ 3-1-2 BEARISH REVERSAL


1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ OFFERS LARGE MAGNITUDE TO FIRST TARGET
1-3 BEARISH REVERSAL STRAT
+ ENTER AT BEGINNING OF MOVE
+ IF RANGE OF OUTSIDE BAR (3) IS CLEARED, OFFERS A
CONTINUATION PLAY
- RISK OF TURNING INTO AN OUTSIDE BAR (3)

27
1-2-2 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL STRAT
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN INSIDE BAR (1)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) DOWN
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) UP 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
ENTRY ✓ 1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ PLAY OFF FAILED DIRECTIONAL BAR POST CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
RESULTING IN EARLY TREND ENTRY
- IF PREVIOUS CONSOLIDATION IS NOT CLEARED, CHOP WILL
ENSUE

28
1-2-2 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL STRAT
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN INSIDE BAR (1)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) UP
3-1-2 BULLISH CONTINUATION

FOLLOWED BY 3-1-2 BEARISH CONTINUATION


• A DIRECTIONAL BAR (2) DOWN 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
ENTRY
STRENGTH/WEAKNESS ✓ 1-2-2 BEARISH REVERSAL STRAT
1-3 BULLISH REVERSAL STRAT
+ PLAY OFF FAILED DIRECTIONAL BAR POST CONSOLIDATION
1-3 BEARISH REVERSAL STRAT
RESULTING IN EARLY TREND ENTRY
- IF PREVIOUS CONSOLIDATION IS NOT CLEARED, CHOP WILL
ENSUE

29
1-3 BULLISH 2-2 BULLISH CONTINUATION

REVERSAL STRAT
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN INSIDE BAR (1)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) DOWN WHICH FAILED AND
3-1-2 BULLISH CONTINUATION

REVERSED, BREAKING THE OTHER SIDE OF THE INSIDE BAR (1) 3-1-2 BEARISH CONTINUATION
RESULTING IN AN OUTSIDE BAR (3) 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
+ PLAY OFF FAILED DIRECTIONAL BAR POST CONSOLIDATION
ENTRY
✓ 1-3 BULLISH REVERSAL STRAT
1-3 BEARISH REVERSAL STRAT
RESULTING IN EARLY TREND ENTRY
- ENTERING DURING RANGE EXPANSION, PRICE CAN REVERSE

30
1-3 BEARISH 2-2 BULLISH CONTINUATION

REVERSAL STRAT
2-2 BEARISH CONTINUATION
2-2 BULLISH REVERSAL
2-2 BEARISH REVERSAL
3-2-2 BULLISH REVERSAL
3-2-2 BEARISH REVERSAL
2-1-2 BULLISH CONTINUATION
2-1-2 BEARISH CONTINUATION
IDENTIFYING
2-1-2 BULLISH REVERSAL
• AN INSIDE BAR (1)
2-1-2 BEARISH REVERSAL
FOLLOWED BY
• A DIRECTIONAL BAR (2) UP WHICH FAILED AND REVERSED,
3-1-2 BULLISH CONTINUATION

BREAKING THE OTHER SIDE OF THE INSIDE BAR (1) 3-1-2 BEARISH CONTINUATION
ENTRY
RESULTING IN AN OUTSIDE BAR (3) 3-1-2 BULLISH REVERSAL
3-1-2 BEARISH REVERSAL
1-2-2 BULLISH REVERSAL STRAT
1-2-2 BEARISH REVERSAL STRAT
STRENGTH/WEAKNESS
1-3 BULLISH REVERSAL STRAT
+ PLAY OFF FAILED DIRECTIONAL BAR POST CONSOLIDATION
RESULTING IN EARLY TREND ENTRY
✓ 1-3 BEARISH REVERSAL STRAT

- ENTERING DURING RANGE EXPANSION, PRICE CAN REVERSE

31
T H E S T R A T

ENTRIES
AND EXITS
MODULE 4

M W M
32
ENTRIES TIME FRAME CONTINUITY

PLAY WITH THE TREND


INSTEAD OF AGAINST IT.
EXAMINE HIGHER
TIMEFRAMES TO CONFIRM
ENTRY.

ACTIONABLE CANDLESTICK
COMBINATIONS

NOT ALL CANDLESTICK


COMBINATIONS ARE
ACTIONABLE. FOR EXAMPLE,
2-2 CONTINUATIONS CAN BE
USED TO REMAIN IN A PLAY,
BUT NOT ALWAYS FOR ENTRY.
NON-CONSOLIDATION
RANGE

DO NOT ENTER WHEN THE

EXECUTE WITHOUT EMOTIONS TIME FRAME ABOVE IS AN


INSIDE BAR (1). ENTRY WITHIN
THE STRAT COMBINATIONS GIVE ENTRIES ON HIGH OR LOW CONSOLIDATION WILL RESULT
BREAKS OF THE PREVIOUS CANDLE. THIS PREVENTS THE IN A SIGNIFICANT AMOUNT OF
NEED FOR EMOTIONS, RESULTING IN ACTIONABLE TRADES CHOP DUE TO INDECISION
ONLY. BETWEEN BUYERS AND 33
SELLERS.
EXITS
PREVIOUS CANDLES
ARE TARGETS

PREVIOUS CANDLESTICK
HIGHS OR LOWS ARE USED
AS PRICE TARGETS.

SCALE

SCALE OUT AND SECURE


PROFITS AS THE CANDLE
REACHES PRICE TARGETS.

NEVER QUESTION EXITS AGAIN


LET PLAYS DEVELOP THE STRAT GIVES MULTIPLE TARGETS/EXITS.
THIS ENABLES POSITION SCALING
BY HAVING TARGETS AND
AND RUNNERS HELD WITH CONVICTION.
SCALING OUT, MAXIMIZE
GAINS AND LET PLAYS
REACH THEIR FULL
POTENTIAL.

34
EXITS
TARGET 2

TARGET 1

ENTRY

• PREVIOUS CANDLES ARE TARGETS

• NEXT TARGET IS THE CANDLE PREVIOUS THAT

• CREATE AS MANY TARGETS AS DESIRED

35
T H E S T R A T

STOP
LOSSES
MODULE 5

M W M
36
STOP LOSS RESPECT STOP LOSSES TO
MINIMIZE MASSIVE LOSS
SHARES
STOP

BASED OFF THE ENTRY

UNDERLYING’S PRICE

• STOPS WITH SHARES ARE STRAIGHT FORWARD


• PLACE A STOP LOSS AT THE BOTTOM OR TOP OF THE ENTRY
CANDLE
• REDUCE RISK BY PLACING STOP ON A LOWER TIME FRAME
CANDLE ENTRY

STOP

37
STOP LOSS RESPECT STOP LOSSES TO
MINIMIZE MASSIVE LOSS
OPTIONS
STOP

BASED OFF THE ENTRY

UNDERLYING AND
GREEKS

• OPTIONS STOPS ARE MORE COMPLICATED AS GREEKS ARE INVOLVED


• STOP LOSSES SHOULD BE DETERMINED AROUND CONTRACT VALUE AS
WELL AS INVALIDATION
- MWM RECOMMENDS STOPS AT ~20% PREMIUM VALUE
• REDUCE RISK BY PLACING STOP ON A LOWER TIME FRAME CANDLE

ENTRY

STOP

38
T H E S T R A T

MODULE TTO 6

M W M
39
TRIANGLE THEY OUT

TOOK OUT
TAKE OUT HIGHS PREVIOUS HIGHS
TAKE OUT LOWS
FIND ENTRY

“TRIANGLE THEY OUT” IS CORRECTIVE ACTIVITY.


ENTRY LONG
PRICE WILL TAKE OUT THE HIGHS AND LOWS, ESSENTIALLY
CREATING AN OUTSIDE BAR (3) ON LARGER TIME FRAMES. WAIT FOR
THIS CORRECTIVE ACTIVITY TO CONCLUDE AND FIND ENTRY.
TOOK OUT
PREVIOUS LOWS

40
T H E S T R A T

TIME FRAME
ANALYSIS
MODULE 7

M W M
41
FULL TIME FRAME ANALYSIS
DAY TRADING

WEEKLY CANDLE
KNOW WHAT THE
LARGER TIME FRAMES
ARE DOING.
DAILY CANDLE
WHEN ENTERING A DAY TRADE OR SCALP,
MONITOR THE TIME FRAMES ABOVE TO
WHAT IS FULL TIME ENSURE THERE IS NO CONFLICTION
4 HOUR
1 HOUR FRAME CONTINUITY? BETWEEN HIGHER TIME FRAMES.
CANDLE

ALL THE TIME FRAMES ABOVE FOLLOW


THE SAME TREND. THIS RESULTS IN THE
HIGHEST PROBABILITY OF A SUCCESSFUL
30 MIN 15 MIN TRADE.
5 MIN 1 MIN
CANDLES

42
FULL TIME FRAME ANALYSIS
SWING TRADING

QUARTERLY CANDLE
KNOW WHAT THE
LARGER TIME FRAMES
ARE DOING.
MONTHLY CANDLE
WHEN ENTERING A SWING, MONITOR THE
TIME FRAMES ABOVE TO ENSURE THERE IS
WHAT IS FULL TIME NO CONFLICTION BETWEEN HIGHER TIME
WEEKLY CANDLE FRAME CONTINUITY? FRAMES.

ALL THE TIME FRAMES ABOVE FOLLOW


THE SAME TREND. THIS RESULTS IN THE
HIGHEST PROBABILITY OF A SUCCESSFUL
TRADE.
DAILY CANDLE

43
T H E S T R A T

MODULE TIME FLIP 8

M W M
44
TIME FLIP
TABLE SHOWING THE FLIP = NEW CANDLE FORMS

TIME 5 MINUTE
CANDLE
15 MINUTE
CANDLE
30 MINUTE
CANDLE
1 HOUR
CANDLE

9:30
9:35
KNOW WHEN 9:40
THE NEXT
9:45
CANDLE STARTS
9:50
9:55
TIME FLIP IS WHEN A NEW CANDLE ON THE GIVEN TIME
PERIOD FORMS 10:00
10:05
10:10
10:15
10:20
10:25
10:30 45
T H E S T R A T

MODULE INTRADAY 9

STRATEGY

M W M
46
INTRADAY 5 MINUTE :

STRATEGY ENTRY

30 MINUTE : CHECK

5 MINUTE CANDLES 30 MINUTE CANDLES

USE 5 MIN CANDLES FOR USE 30 MIN CANDLES FOR


ENTRY AND STOP COMBINATIONS, ENTRY, AND
TARGETS
1 HOUR : CHECK

DAILY CANDLES WEEKLY CANDLES


DAILY : CHECK

USE DAILY TO CONFIRM OPTIONAL. FOR FULL TIME


TREND FRAME CONTINUITY

47
T H E S T R A T

MODULE SWING 10

STRATEGY

M W M
48
SWING DAILY :

STRATEGY ENTRY

WEEKLY : CHECK

DAILY WEEKLY

USE DAILY CANDLES FOR USE WEEKLY CANDLES FOR


ENTRY, STOP COMBINATIONS, ENTRY, AND
TARGETS
MONTHLY : CHECK

MONTHLY QUARTERLY
QUARTERLY :
CHECK
USE MONTHLY TO CONFIRM OPTIONAL. FOR FULL TIME
TREND FRAME CONTINUITY

49
T H E S T R A T

BROADENING
FORMATIONS
MODULE 11

M W M
50
BROADENING
FORMATIONS
WHAT IS A
BROADENING
FORMATION?

A BROADENING FORMATIONS OCCUR WHEN HIGHS AND


LOWS ARE PROGRESSIVELY TAKEN OUT ON A GIVEN TIME
FRAME. CONNECTING THESE HIGHS TO HIGHER HIGHS AND
LOWS TO LOWER LOWS RESULTS IN THE CREATION OF A
BROADENING FORMATION. THIS CAN PROVIDE TARGETS
AND FUTURE POINTS OF SUPPORT AND RESISTANCE.

NOTE: TTO IS A BROADENING FORMATION ON A SMALLER


TIME FRAME

51
T H E S T R A T

MODULE PMG 12

M W M
52
PIVOT MACHINE GUN
HIGHER LOW (ENTRY)

HIGHER LOW

WHAT IS A PIVOT HIGHER LOW

MACHINE GUN?
HIGHER LOW

HIGHER LOW

• A PIVOT MACHINE GUN IS A SERIES OF HIGHER LOWS OR


LOWER HIGHS
• EACH OF THESE POINTS ARE WHERE TRADERS' STOPS ARE.
ESSENTIALLY WHEN TAKEN OUT, TRADERS MUST COVER OR LOWER HIGH
SELL THEIR POSITION, ADDING TO THE GROWING LOWER HIGH
MOMENTUM.
• THIS CAUSES THE STOPS TO BE TAKEN OUT IN RAPID LOWER HIGH

SECESSION AND A VOLATILE REVERSAL TO TAKE PLACE.


LOWER HIGH

LOWER HIGH (ENTRY)

53
T H E S T R A T

COMBINATION
MODULE
WITH 11

TRADITIONAL
TA

M W M
54
COMBINATION WITH
OTHER TA
COMBINE WITH
OTHER TECHNICAL
ANALYSIS EMA STACK

DEPTH OF MARKET
ALTHOUGH THE STRAT CAN BE USED EFFICIENTLY BY ITSELF,
PAIRING THE STRAT ALONGSIDE TRADITIONAL TA CAN YIELD
EVEN MORE CONSISTENCY.

MOVE WITH MARKET RECOMMENDS THE FOLLOWING TA SUPPORT AND


PAIRINGS: RESISTANCE LEVELS SUPPLY AND
• SUPPORT & RESISTANCE LEVELS DEMAND ZONES
• EMA (EXPONENTIAL MOVING AVERAGE) STACKS
• SUPPLY & DEMAND ZONES
• DEPTH OF MARKET & OTHER ORDER FLOW TECHNIQUES

55
T H E S T R A T

MODULE
INTRADAY 12
EXAMPLE

M W M
56
INTRADAY EXAMPLE • THE 30 MINUTE CHART PRESENTS A DIRECTIONAL BAR (2) UP
AND THEN AN INSIDE BAR (1). POSSIBLE 2-1-2 REVERSAL

• THE INSIDE BAR IS ALSO A SHOOTER, SHOWING BEARISH


INSIDE BAR (1) PRESSURE

• ENTRY WOULD BE ON THE BREAK OF THE 30 MINUTE CANDLE


DOWN
ENTRY
• MARK ENTRY AND TARGETS ON THE 30 MINUTE CHART

TARGET 1 • BEFORE LOOKING TO GET ENTRY LOOK AT THE HOUR AND


DAILY CHART TO SEE IF THERE IS TIME FRAME CONTINUITY

SINCE BOTH, THE


HOUR AND DAILY
CHART ARE
SHOWING BEARISH
PRESSURE, THERE
TARGET 2 IS TIME FRAME
CONTINUITY. NEXT
LOOK AT THE 5
MINUTE CHART
FOR ENTRY AND
STOP

30 MINUTE CHART HOUR CHART DAILY CHART

57
INTRADAY EXAMPLE
• AFTER MARKING ENTRY AND TARGETS ON THE 30 MINUTE
CHART, SIGNALS WILL ALSO APPEAR ON THE 5 MINUTE CHART

• WAIT FOR PRICE TO BREAK BELOW THE ENTRY AND THEN


ENTER A SHORT POSITION

STOP • FOR LIMITED RISK, PLACE A STOP ON THE TOP OF THE 5 MINUTE
ENTRY CANDLE ENTERED OFF OF

• AS DETAILED BELOW, PRICE HIT BOTH TARGETS AND RESULTED


IN A PROFITABLE TRADE
TARGET 1

STOP
ENTRY

TARGET 1

TARGET 2

TARGET 2

5 MINUTE CHART
30 MINUTE CHART – REFERENCE
58
T H E S T R A T

MODULE
SWING 12
EXAMPLE

M W M
59
SWING EXAMPLE • THE WEEKLY CHART PRESENTS A DIRECTIONAL BAR (2) DOWN
AND THEN A DIRECTIONAL BAR (2) UP. POSSIBLE 2-2 REVERSAL

• ENTRY WOULD BE ON THE BREAK OF THE WEEKLY CANDLE UP

• MARK ENTRY AND TARGETS ON THE WEEKLY CHART

• BEFORE LOOKING TO GET ENTRY LOOK AT THE MONTHLY AND


QUARTERLY CHART TO SEE IF THERE IS TIME FRAME CONTINUITY
TARGET 3

TARGET 2

TARGET 1
SINCE BOTH, THE
MONTHLY AND
ENTRY QUARTERLY CHART
ARE SHOWING
BULLISH PRESSURE
AND
CONTINUATION,
THERE IS TIME
2-2 REVERSAL
FRAME CONTINUITY.
NEXT LOOK AT THE
DAILY CHART FOR
ENTRY AND STOP

WEEKLY CHART MONTHLY CHART QUARTERLY CHART

60
SWING EXAMPLE
• AFTER MARKING ENTRY AND TARGETS ON THE WEEKLY CHART,
SIGNALS WILL ALSO APPEAR ON THE DAILY CHART

• WAIT FOR PRICE TO BREAK ABOVE THE ENTRY AND THEN


ENTER A LONG POSITION.
TARGET 1
• FOR LIMITED RISK, PLACE A STOP ON THE BOTTOM OF THE
DAILY CANDLE ENTERED OFF OF. HOWEVER, SINCE THE STOP
WOULD BE SO CLOSE TO ENTRY, FIND A PREVIOUS SUPPORT OR
RESISTANCE AND PLACE STOP THERE.

• AS DETAILED BELOW, PRICE HIT ALL TARGETS AND RESULTED


ENTRY
IN A PROFITABLE TRADE
STOP

TARGET 3

TARGET 2

TARGET 1

ENTRY

DAILY CHART
WEEKLY CHART – REFERENCE
61

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