RILWELE THEOPHILUS MUDZANANI

WHAT IS A MARKET MAKER?

• Market makers are the liquidity providers with a significant role to serve
as intermediaries in the sell or purchase of the currency
• The market makers provide the liquidity needed to make a profit to a small
elite group of trained traders to trade on their behalf
• Such traders are called ‘Dealers’
• In order for them to make profit they have to take you out.
 OBJECTIVE OF THE MARKET MAKERS

• To induce you to take a trade

• Create fear and panic: by using quick moves,
news, spikes
• Hit your stop loss
TYPICAL DAILY CYCLE
The dealer start the day in
consolidation.
This is done to accumulate
contracts.
If there is 500 Million long
holders and 300 Million short
holders. Guess who is going to
be take out first? The LONG
holders and this is done
through a stop hunt
• It does not always appear so perfectly because it will
become too obvious and retail traders will notice
• However, the pattern is all that matters and it will get
you good pips
• Know: your strike zone, stop hunt, TDI hooks, M & W,
pins to the EMAs
• We are not market makers but we can trade in line
with them.
• Practice makes perfect
STRIKE ZONE

• The Asian Range is ideally 15-25 pips. However pairs with AUD,
JPY and NZD can consist of more than 25 pips range in the Asian
Session
• This is because this currencies belong to the Asian session
• The first strike zone is on the initial LOD or HOD. As it is the area
were the dealers can fake a breakout.
• The second striking zone is 25-50 pips away from Asian Range.
• The market tend to reverse whenever they reach those significant
areas
MOVING AVERAGES
• The moving averages are used to give an good insight of the market
direction
• You can use them as your entry and exit
• They also measure momentum
• We use the 5 EMA(mustard), 13 EMA(ketchup), 50 EMA (water), 200
EMA (mayo) and 800 EMA(Blueberry pie)
• The 5 & 13 EMA are the signal lines. Their function is to give you a
sign to buy or sell.
• The 50 EMA shows an intraday trend. Specifically, it shows a trend in
the 1HR timeframe.
• The 200 EMA measures the long term trend. (4hr timeframe).
• Whenever there is a crossover between 50/200 EMA , signifies a new
trend has formed. DON’T TRADE AGAINST THE TREND
ADR (AVERAGE DAILY RANGE)
• This the a range which signifies how many pips can a pair move
in a day
• This help you understand where reversal might be
• Do note that this indicators is not 100% accurate as it is an
oscillator
• Don’t not rely on indicators alone, let the pattern guide you
WEEKLY CYCLE

MON

TUE FRI

WED
THUR
• The dealer can push the price up or down for 3
days then reverse
• The reversal usually happen on Tuesday,
Wednesday or Thursday
• The dealer usually close the week near where it
opened on Sunday
• This is not often happen since it will be too obvious
• However, if you catch it. GAME ON!
SESSION
• In the Forex Market, there are three main sessions,
namely, Asian, London and New York session
• Usually, during the Asian session the dealer
consolidate in a 15-25 pips channel.
• This is a process whereby the dealer is accumulating
contracts
• The London session carries a large volume of trading
activities. More setups are perfect during the London
session
• It is advisable to always seek for setups at the
London session
Most pairs are usually
active in their session.
If you see a setup, during
the Asian session, in one
of pairs with AUD, JPY or
NZD. Do trade it with
good money
management
How to trade Straight-Away trades
• This are the most difficult trades to catch, as there is no stop hunt.
• However, one can know whether or not, a straight-away will occur.
• When looking for this trade, you need to at least spot the follow criterias:
TDI squeeze;
50/200 EMA crossover
• Whenever there is a TDI squeeze, the is a tight range in price action, they
market makers will have to release profit.
• 50/200 EMAs crossover notify us that a new trend is formed, so it is highly
impossible for price to push up when price action is under the EMAs, vice
versa.