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Michael J.

Huddleston

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What We Will Cover This Month


1) Long Term Perspective
2) Determining The Range
3) Focusing On Probable Reactions
4) Implementing Market Structure Shifts
5) Forecasting Potential Direction

Begin With Monthly Charts

The Long Term Insight Has Significant Impact On The Near Term

This example is not in any way a hindsight


after the fact scenario. I called this move in
advance and you can see this on my
YouTube Channel here =>

http://youtu.be/1gqnoteIPgg

We will be using
this example in
Price Action to
teach this concept
as it is anchored
to a Live Analysis.

Study this chart


closely and see if
you can spot some
of the obvious
points about this
particular portion of
Price Action?

S&R

Clear Level
Both Roles

Old
H&L

An Old High
An Old Low

Range High

The Current Range

Range Low

Range High

The Range need not


be broken to make
money. We can
Trade inside the
Range and profit!
Range Low

Range High

Lets note some


crucial and
otherwise obvious
points about this
area in Price Action.
Range Low

The 1.50 level is an


obvious Support &
Resistance level. The
Fib overlaid on the
range we
determined shows an
OTE [Optimal Trade Entry].

Lets zoom in closer


and study this portion
in Price Action further
and begin to break
down the concepts as
you would in your
Demo Trading.

The Range between the Low on this Monthly Swing Low and the High on the 3rd Candle
completing the Swing Low Pattern is your Intermediate Term Dealing Range. We will move
down to a Weekly Chart to further study this Price Action.

Intermediate Term
Dealing Range High

Intermediate Term
Dealing Range Low

We as developing Professionals aim to


control fear & greed and by that
premise we refrain from chasing Price.
Electing to rather wait for Price to
retrace inside the Dealing Range and
stalk a potential Buy Signal

We see Price did in fact retrace inside


the Intermediate Dealing Range. We
see a nested OTE pattern now unfolding
and we can now move down to a Daily
chart for closer analysis

Study this Daily chart and see if you see


anything that stands out in our list of
clues we stalk? See any S&R levels, Old
Highs or Lows?

We can note these lows and drill down


into Intraday Lower Timeframes to
stalk an entry pattern on those
timeframes where we employ OTE
patterns for Trade entries

Old Lows in OTE zones and


after retracing inside range.

Lets move down to an 60 minute chart to


start really breaking down this Price Action
using the same concepts we used on the
Monthly Weekly Daily charts

Looking at the 60 minute chart we can see the 1.5025 level was
finding Support as we anticipated based on the Longer Term
Macro to the Micro perspective. The yellow & inner white
rectangles depict the higher timeframe OTE zones.

We will drop down to a 5 minute chart to hunt a setup to


illustrate how developing the Directional Bias with this simplistic
and uniform approach can aid you in your demo Trading and
development as a Forex Trader. Lets drill in to this level here

Do you see how after bouncing at the


predetermined Support at 1.5025, Price gave
further insights in the Bullflag formation? Lets
look closer at Price when it dropped into 1.5025!

The addition of the Asian Range on the day the


Cable [Gbp/Usd] traded down into the 1.5025
Support level illustrates how the Smart Money
accumulates inside the Asian Range and more
importantly and what makes my concepts
unique.
Buying under the Asian Range High. The Price is
determined by the Fibo tool as illustrated and
the Timing is driven by Session Openings and
Closings. In this case lets see when the OTE
formed and found Support on our
predetermined 1.5025 price level.

The overlap of London Open & Asian Close was the Timing factor in this trade setup. By having
first laid the ground work in Long Term Macro Perspective on the Monthly, Weekly, Daily, 60
minute and finally 5 minute basis we can arrive at a Directional Bias. Stalking trades only in
this direction is recommended while first developing as a Demo Trader. It will provide the
building blocks needed to assist you in more advanced counter trend trades. Lets take a look
at the results this trade entry offered those savvy enough to see the signs and clues Smart
Money provided the Traders in Cable

As you can see here over 700 pips was the result.
Im sure you are still full of questions and I havent
exhausted my treatise on the topic we will build
on these foundations. Again, I council you to view
the YouTube video I posted before the market
traded as detailed here.

700+ Pips
Directional Bias Trading