By jjwurldin

All you need to know about price

delivery in a singular E-book

Begin Reading

@jjwurldin
TRADER

@TradersVideo_Library
@TradersVideo_Library

Published 15 Jan 2023

 Chapter Breakdown
Thankyou's (P3)

Chapter 1: An Introduction to algorithmic Theory (P4-5)

Chapter 2: Continuous Linked Settlement Algorithm (P6-7)

Chapter 3: The Weekly Cycle (P8-11)

Chapter 4: ASIA Session range and characteristics (P12-15)

Chapter 5: Frankfurt Range and characteristics (P16-18)

Chapter 6: London session and characteristics (P19-20)

Chapter 7: NY session and characteristics + DAILY CYCLE (P21-23)

Chapter 8: ALGO Candle and protected H/L's (P24-26)

Chapter 9: ALGO mitigation qualities, vector candle and money

transfer (P27-33)

Chapter 10: Inducement theory and volume(P34-38)

Chapter 11: Imbalance / re-balance (P39-41)

Chapter 12: Price delivery levels and Premium/Discount Pricing

(P41-47)

Chapter 13: ALGO structure (P48-49)

Chapter 14: Manipulation traps (P50-55)

Chapter 15: News Model (P56-57)

Chapter 16: Top down Analysis (P59-64)

Chapter 17: Case studies (P65-70)

First of all...

I would like to thankyou for purchasing this book. I have put a

lot of time into this book, and countless hours discovering the
knowledge shared. I hope this book brings value to your
trading and i can assure it will be a worthy investment of your
money making this purchase and also your time reading this
book.
My advice would be to take notes, and re-read sections to
help solidify your knowledge, and also be sure to ask me any
questions if you need some help and i'll try my best !

The book covers my perspective and theory behind price

delivery, and what i use to trade everyday. More or less
everything taught in this book is what i use, not much has
been kept hidden so hopefully i have provided as much value
to you as possible !

Always remember, with hard work and dedication towards

your goals you can achieve the unthinkable. Perfect your
craft by sacrificing time and money, and societal norms to
differ from the crowd and take a separate path from the
sheep . Do not fear making change- the people around you
will call you crazy for your dedication, however when they see
the results they will understand why you always had this
vision. The possibilities with trading are endless, we are all on
an amazing journey conquering the markets and i am glad to
be apart of your journey. Work hard in every waking hour
and there are no excuses.
-jj
 An introduction to the algo

The Market is a zero sum game. This means that for

every buy order, there must be an equal corresponding
sell order. Every buy and sell have to be matched.
Because of this, the market is technically a player vs
player setting. For every time you make money, equally
there is someone losing money. When you lose money,
someone has made money. This where the idea of
manipulation comes from.
The algorithm is complex software using AI technology to
dictate all markets. The 'algo' is ran on behalf of a
supercomputer which uses mathematical calculations to
analyse the interpretation of data in the market. Data is
the formatting of orders in a market; this is represented
as specific price point with a specific magnitude of order.

Current technologies are outdating previous price

movement theories. The idea of trading algo strategy is to
stay 1-step ahead of the pack. The market evolves and its
participants have to adapt by natural selection. The sheep
get slaughtered.

The interbank price delivery algorithm is a computer

program that is used to facilitate the transfer of prices
between different financial institutions in the interbank
market. This market is made up of banks and other
financial institutions that buy and sell financial
instruments, most importantly the most common ones
being what we trade (Forex and indicies). The interbank
price delivery algorithm is used to ensure that the prices
being quoted by one institution are accurately reflected in
the quotes being received by another institution.
The interbank price delivery algorithm works by taking the
prices being quoted by one institution and comparing
them to the prices being quoted by other institutions. If
there is a significant difference between the prices being
quoted, the algorithm will adjust the quotes to ensure that
they are in line with each other.
 This helps to ensure that the prices being quoted in the
interbank market are as accurate as possible, which is
important for the smooth functioning of the financial
system.

There are a number of different factors that can affect the

prices being quoted in the interbank market. These include
economic conditions, political events, and changes in the
supply and demand for different financial instruments. The
interbank price delivery algorithm is designed to take these
factors into account and adjust the quotes accordingly.

The theory we trade is very complex as a whole however we

only trade a tiny amount of what the algorithm actually
does

The algo controls the market, not just technically, but also
emotionally. The algo exploits the weak emotional mind of
retail traders and forces them to make irrational decisions,
in which they are trapped and consequently manipulated
out of the market and forced into margin trouble. The algo
also exploits retail traders poor understanding or price
action due to their strategies. However the algo doesn’t
know retail liquidity different to smart money liquidity, it
just see's money and wants to take it. The algo moves from
money to money, or in other words stop losses to stop
losses, and does this in the most efficient way. The most
efficient way can also be known as the most cheapest or
'discounted' way of moving price

Liquidity will always exist and therefore so will manipulation.

 CLS and their Algo
CLS Group is a financial market infrastructure that provides
settlement, processing and data solutions for the global foreign
exchange market. It is a multi-currency cash settlement system
that helps reduce settlement risk for its members, which include
banks and other financial institutions.

CLS Group operates a settlement system for foreign exchange

transactions that helps reduce the risk of failure to deliver on a
trade by ensuring that payment and delivery of one currency is
made only if payment in another currency is made at the same
time. The company is headquartered in London, UK, and has
offices in New York, Hong Kong, and other locations around the
world.

Over 70 of the worlds largest financial institutions choose to be

settlement members of the CLS group

The CLS (Continuous Linked Settlement) algorithm is a computer

program that is used to facilitate the settlement of foreign
exchange transactions in the interbank market.
The CLS algorithm is used to ensure that the settlement of these
transactions is done in a timely and efficient manner.

The CLS algorithm works by taking the details of a foreign

exchange transaction and comparing them to the details of other
transactions that are being settled at the same time. If there are
any discrepancies between the transactions, the algorithm will
identify them and adjust the details accordingly. This helps to
ensure that the settlement of the transactions is done accurately
and efficiently.

Overall, the CLS algorithm is an important tool that helps to

facilitate the settlement of foreign exchange transactions in the
interbank market. It plays a vital role in ensuring the smooth
functioning of the financial system, and its continued development
and improvement are important for the stability of the financial
markets. The concepts and strategy i teach operate under the CLS
algo and its theory. One of the most important aspects of my
trading is specifically related to the CLS settlement timings, in
which i will teach in this book.
The algo doesn't know what a chart looks like. A chart is a
graphical way of representing the processing and
interpretation of market data. The algo operates off data
rather than 'Highs and Lows' or 'Structure'. Price movement
is purposeful and magnetic, moving between liquidity to
liquidity and imbalance to imbalance. Price delivery moves
in cycles, based upon time and liquidity. The algo doesn't
see highs or lows, equal highs/lows, SnD, SnR. It just see's a
price level with a magnitude of orders.

This is a key concept alot of trader's find hard to

understand. The algo doesn't have a strategy, it just reacts
to how data is being formulated, across all time
perspectives. It operates from the lowest time frames all the
way to the biggest picture.

Price is 'fractal', meaning uniform across all perspectives of

time.

The algo can be seen like a predator, which is usually a

good analogy i use to describe it to traders looking to trade
liquidity concepts and my students. Think of the
characteristics of a predator- quick movements and instant
punishment. A predator will wait for its pray to be in a good
position before pouncing and injecting instant pain to kill the
animal. The algo builds liquidity in cycles and then raids
liquidity in cycles, waiting for the perfect time to do so just
like a predator

Now to get to chart work...

The Weely Cycle Delivery
Starting from the big picture, this topic will cover the details of
the Weekly Cycle. Price follows delivery patterns which can be
subjective to the day of the week. These movements come
together to form a l cycle over the span of the week. The
Weekly Cycle is an important concept when carrying out top-
down analysis, and also getting your bias for the day. There
are two cycles to know, one for each corresponding market
direction

A Bullish Week

Monday;
Monday is the beginning of the week and the day starts in a
liquidity deficit. This means Monday will typically create a
manipulation move in order to harvest liquidity to begin the
weeks price movement. The previous weeks Friday High or
Low is usually taken as liquidity, and also potentially the
PWH/L.
 Another important characteristic of Monday is that most of
the time it forms the high or low of the week

Tuesday;
On Tuesday, price will accumulate some orders and then
typically establish the weeks direction. As shown in the
diagram Tuesday has taken out mondays high, meaning it
has established a bullish weekly direction and confirmed
Monday's low to likely be the protected low of the week

Wednesday;
Wednesday is usually a low volume day being the middle of
the week, in where price prepares itself for the final 2 days
of the week. Wednesday will build the largest volume of
orders on both sides of the market. Sometimes this
accumulation will cause a short reversal of Tuesday's push
up.

Thursday;
The purpose of Thursday is to manipulate Wednesday's
accumulation and Thursday typically will cause the largest
move of the week.
Thursday is the most common day for Higher time frame
levels to be met since it usually is the most manipulative day
with alot of volume, espescially relative to Wednesday.

Friday;
Friday, being the end of week, will distribute and also
potentially reverse the movement of Thursday to facilitate
an equilibrium price level for the new week to start Monday.
The distribution also leaves behind some orders that's will be
easy for Monday to capture the following week

This cycle is the most general, high probable format of a bullish

weeks price action
Monday- Marked by the red zone, forming the protected low of
the week

Tuesday- Establishing direction for the week

Wednesday; Accumulates orders, essentially forms a range or

schematic

Thursday; Large move which hits weekly target liquidity High

Friday; Distributes and forms a small reversal, leaving liquidity for

Monday to Harvest
Bearish Week

On Monday price accumulates orders

On Tuesday, a manipulation move will usually occur. This

tends to create the protected high of the week. After the
manipulation, Tuesday progresses into the bearish
direction.

Wednesday and Thursday price will continue in the bearish

direction however whilst generating and inducing more
orders

On Friday price creates the last push of the week and forms
the low of the week
 The Asia Range
The Asia range is a session which has multiple characteristics in
which can be used for developing a daily bias, and also taking
entries. The true Asia timing to the CLS algo pay in/out schedule is
23:00 PM - 05:30 AM GMT.

The asia liquidity cycle

Asia session is typically a low volume session in which builds alot

of intraday liquidity for price to use in the more volatile session
timings such as and London and NY.
The asia range high and low are significant liquidity areas in which
london session uses as 'fuel' to move price.

Commonly, once price raids the high of the asia range, it will then
come down to take the low of the asia range, and vice versa.
Using this concept can provide good trade opportunities at the
money transfer after a high or low of the range has been taken.
Buy opportunity off asia low

Sell opportunity off asia high

 Asia Close Direction
Another way asia session range can be used is paying attention
to the direction in which the range closes. Does the range close
at a cheaper or more expensive rate than it opened?

There a few rules you need know when it comes to this concept;

BULLISH Asia range = BULLISH day

BEARISH Asia Range = BEARISH day

This concept is mainly used for building a daily bias to which

direction price will deliver, and also keeping this in mind can
increase probabilities if trading inline with it .

Chart link

In the image above, the red circles represent the open and
close of the session range. Where price has had a bullish
range, the day closed bullish and vice versa.

A variation of the concept to keep an eye out for is a fake

london open move. For example, if we was expecting a bearish
day, price may push bullish at the open of the trading day, in
order to take liquidity which then reverses and fuels the
bearish day- so price faked a bullish day just to manipulate
orders essentially.
Chart link

23:00 PM - 05:30 AM GMT

Frankfurt Session
Frankfurt session occurs between 6am-7am GMT. It can be used
as another short-term intraday liquidity range, typically to fuel
london session. The opening price of Frankfurt session can also
be a good indication to potential reaction points and entries.
The pink range on the
image to the right
shows the Frankfurt
session range. The
high and low of the
range can be used as
liquidity for London
session to use. In this
image, the high and
low get grabbed and
after taking price
reaches a key HTF
level. Since the FF high
or low was taken price
can inject this liquidity
back to the market
and therefore a trade
can present. In this
example price gives
both a sell and buy off
the high and low

Entry example using

FF low session raid
 Frankfurt opening price (FOP) is the level in which the session
opened at 6AM GMT. This level can be seen marked as the Red
line. FOP can be used to determine and add confirmation to the
leveles your playing. For example, the zone that forms above FF
opening price is a low probability, weak zone, which can be seen
marked as a SMT (Smart money trap). We will expand on
trapping alot more later on in this book.
The zone below frankfurt opening price, marked by the other
pink rectangle, is a higher probability level, since its below FF
open level, and we have taken the trap zone above FOP showing
nice manipulation before our entry zone. This level also allows
FF Low to be taken and used as liquidity
The same scenario occurs for the corresponding
side, taking sells.
 London open session
London open timing occurs within the first hour of London open.
This timing is at 8am-9am GMT.
London open is known for creating the protected high or low of
the day.

The blue range in the image above represents the London Open
range. In this examplem, asia high and the Frankfurt range has
been taken and used as liquidity, and as a by-product is used
by the algo to fuel london session. London open range is
usually very volatile. London forms the protected high of the
day in this example (HOD)
 We can position ourselves in the market by knowing whether
London will form the high or low of the day, based on the HTF
and other confluences. Once a bias is developed we can trade
London open and look for entries , and then also continuations
throughout the day given we are expecting the high/low is
protected by the algo for the day. After the day is over, the
HOD/LOD no longer is protected by the algo, and may become
a future liquidity point for future days, due to lots of orders
being trapped at this level

Entries taken based off London high/low being protected and

forming the high of the day

The best concept this idea can be paired with is the Asia
bullish/bearish close. If Asia closed bullish, we would expect the
day to be bullish. So we would also expect London open to form
the low of the day and for it to be protected
NY session
NY session occurs after London and is also among the the most
volatile session. The opening hour of NY is 1pm GMT and within this
first opening hour the NY session often presents a common price
formation which can be used in our bias and for entries during the
session .

NY session open is known for causing reversals, usually a reversal to

London. This reversal creates a trap and then price continues in its
daily direction after the trap has been taken. NY open price can be
labelled a trap timing

Ny session is indicated by the green box. The open of the box is the
NY open timing. As the session opens a large sell is injected, leaving
behind a trap. Most traps give a reaction before they faily, to induce
more sellers in this case. This fake reaction as a result gives a good
buy opportuinity, with anticipation the trap will fair and price will
continue in its daily bullish direction
We have a bullish day, due to a bullish asia close. Asia low and also
Frankfurt low were taken which formed a protected low. After this
liquidity was taken, the algo injected orders and bullish movement
occurred to the next intraday targets (e.g Asia high).
NY session contradicted London's direction leaving behind a trap.
SMC see this as a structure shift to bearish which leaved behind a
supply. The algo takes liquidity and then begins to shift and
ventually take out the trap and continue the longs
The Daily Cycle
From the knowledge taught so far about sessions, we can
come to a conclusion of the daily cycle, which puts together
all session characteristics

;Formulation of Asia, Frankfurt, London and NY

Algo Candle and strong H/L's

An algo candle is a pattern which described an agressive candle which

takes liquidity, and has inducement. The actual candle pattern of the algo
candle is what makes it important and allows us to determine its strength.
Typically, algo candles are protected highs and lows, and the algo can use
this as a key level.
The specific candle pattern is extremely important for the
verification of the algo candle. As shown in the image above , the
candle mitigations need to be aggressive, which is shown by a wick.
There should be no more than 3 candles at this level. Make sure the
candles do not have any part of the body close below the liquidity
level. The two uses for an algo candle are:

Knowing what levels are strong and protected

Using them as POI's for a trade, if inline with correct bias

One thing to know about the market , is it moves in CYCLES. So for a

particular liquidity cycle, prices target may be to run a certain high. if
we see algo candles which look very strong they are most likely
protected throughout the continuations, but this only applies until
the liquidity target has delivered. So , another example would be ,
London low may be protected throughout the day as we are
expecting a bullish day, but after the day is over its no longer
protected.
Algo candles often form a lot at key levels, for example London high
or low. As London high/low is notorious for forming the high or low of
the day, it is protected and therefore is usually an algo candle. The
algo candle is usually formed from the asia low or Frankfurt low
liquidity points, as learnt from the daily cycle before.
Mitigation Qualities
Qualities of a mitigation are very important for confirming
areas, as seen when learning about the algo candle. What
happens subsequent to this algorithmic mitigation is also
extremely important, but also the way price approaches
the level before mitigation. The algo is seen as a predator-
predators operate quickly to have the best chance of
catching prey to survive in the wild. The algo injects large
volumes of orders to manipulate traders in a quick time
span; the importance of a quick injection is to reduce time
for emotions or thought process- leaving the traders
emotionally weak after taking hard losses. It also reduces
time for traders to close positions before they take the
loss. The first thing we will talk about is aggressive
mitigations. We measure aggression (or volume)
compared to recent price movement. It is not measured
in size or by unit. I measure this relative to recent price
action.

AGRESSIVE MITIGATION = AGRESSIVE REACTION

In the image above, we are expecting a trade from the protected algo
candle, with significant inducement. We will cover inducement later.

Now we pay attention to how price

mitigates this level. As you can see
masrked by the orange price range -
the algo accumulates orders by
stalling price before our mitigation.
Pay attention to the nature of these
candles, very short volum and choppy
with no direction

With urgency, price then mitigates our

desired level. The model shown is the
market maker sell to buy model, which
we will discuss soon. What hasve we just
learnt about mitigations? an agressive
mitigation gives an agressive reaction.
Agressisve mitigations leave behind trap
zones which we will also talk about soon.
As price hits our purple level, we need
to study the actual candle mitigation. So
as we learnt about algo mitigations, we
want to see a strong rejection , most
importantly for the candle to not close
in the zone. As shown in this example,
price immediately wicks out and closes
with no body closure

Notice how even the next few candles

respect the level with no body close inside
the zone, just wicks. This confirms the
probability to be high
 As expected, we get an aggressive reaction from the level and it holds
perfect

Vector candle
We call these aggressive candles with large displacement Vector
candles. Vector candles can also be seen as a liquidity trap- Traders
who trade based off structure and order flow see vector candles as
strong confirmation of price showing willingness to go in a certain
direction. In fact, vector candles store large injections of liquidity,
and therefore often price reverses and the vector candle is taken
out and/or used as liquidity. Vector candles also show up on HTF as
a large candle, which may induce higher time frame traders to get in
positions such as retail traders, who may trade emgulfing candles
 Even using the example we just studied
for aggressive mitigations. We can see
this orange range here is representing a
vector candle, since its large
displacement in a quick time period.
The high of this candle stores alot of
orders which are unprotected, and may
become a potential liquidity target. This
makes sense, since we were looking for
buys- every move in the market has
purpose, the algo builds liquidity before
he takes liquidity. The algo is one step
ahead and always has his next targets
and direction in order.

Another note to take, would be

agressive moves and mitigations
become important possible liquidity
areas for future price delivery

2 push mitigation
The 2 push mitigation is a pretty self-explanatory concept. Essentially, is
when the first mitigation of an area gets swept, and is common price hasn't
necessarily took enough liquidity prior. This concept can be used fractally,
which is what I use a lot. In the fractal scenario, we would be looking for the
first candle to be swept by the second candle. Make sure however price still
obeys an agressive algo mitigation in which we have studied prior.
Lets take a look at a miniature case study using some of the things we
have learnt so far ...

So, what we can see is that price has taken a liquidity area, leaving behind and strong
high due to its algo rejection- no body closure only wick. We also have a potential
liquidity area for price to raid , which is the low of the large colume bullish candle. This
shows the fractility of the market, as this would be a vector candle on the lowertime
frame
Now dropping to the Lower time frames, we can see price has mitigated a level. It has taken out
inducement liquidity, and also 100% filled an area of inefficiency. We will study this pair
extremely in depth later in the book

Upon mitigation , we see price has aggressively

moved in to our area. This is good confirmation
that price will give an aggressive reaction from
this level. We also witness a 2 push mitigation-
where price sweeps a previous candle high upon
mitigation. Lastly, we see our final confirmation
which is our agressive candle mitigation. As price
hits the level, the candle closes with a wick and
no body above the level. After this candle closes
its now confirmed and we can get in at the open
of the next candle. Our first target could be the
vector candle and our second target can be our
original higher time frame liquidity low.

Below shows the outcome

 When liquidity is taken, someone has lost money due to their stop
loss being taken and subsequently someone on the other hand has
made money. This concept is known as a 'Money transfer' and can
be seen graphically on a chart. To take trades, we want to be
entered into the market during this money transfer. There's a 3-
step cycle to how a money transfer occurs.

Money is The money is re-

Liquidity is
transferred to injected into the
raided by the
the Algo after market on behalf of
Algo liquidity taken the Algo
Inducement is a format of liquidity where large voids of orders are stacked
within price ranges. It is one of the most effective liquidity, espescially for
entries. Inducement is a fractal concept and therefore can be be used
across all timeframes, including LTF for entries.

Inducement occurs within a leg of price, and is essentially a block of liquidity in which
the algo uses as an equilibrium position within orderbook data formatting. What this
means as for when price may pullback, liquidity is usually harvested before the
continuation. No matter how high or low the inducement is in the leg of price, this
level is used as an equilibrium and price will use this level to fuel the next injection. In
the image above, we see a strong algo candle which is protected by the algo. The
orderblock formed at this algo candle is marked by the purple area, and inducement
is formed very close to it. The type of inducement which is most effective is known as
' immediate inducement' . This essentially is inducement that exists very close to an
orderblock or imbalance level- immediately as the inducement is taken, price can tap
the level since its very close. This pair of inducement and a mitigation area allows
almost 0 latency for a money transfer on behalf of the algo, and as a result a large
injection occurs after. Inducement is very efective also when play off a money
transfer. So on the lower time frame when price begins to shift after taking liquidity,
inducement can also be created on the lower time frame giving more precise entries.
The image shows how price uses inducement as an equilibrium point for continuations.
Inducement ranges can be seen as fake momentum ranges. Inducement is a concept
which violates structure, since SMC traders view this as a break of structure rather than
a grab of liquidity

Price is in a constant
state of inducing
traders into the market.
Inducement levels can
also be played without
mitigation- from just
the sweep and
rejection.
 The fixed volume tool shows the formatting of volume between a range of
price. This tool can be used to see where the largest voids of orders are
located, hence clarifying where price may want to come mitigate and take
liquidity from for a trade opportunity. The green range in the image below
shows a price range which is contained by the protected algo candle at the
low

The purple box shows the mitigation of a rejection block, which forms after a
grab of Liquidity. We can draw the fixed volume tool from the protected low at
the algo candle , and the high of the range. The tool will show bard of the
volume within the range of price. The large bars show high volume price levels
and of course the small bars show low volume. A large volume bar which is
paired with a very small volume bar usually indicates a high probability level,
as this shows inducement within an imbalanced area of price
 As shown, price sweeps below the large volume bar on the fixed volume
tool, showing a 100% clear of liquidity. As price takes this important
liquidity area, we have a money transfer and instantly a reinjection back
into the market to run liquidity highs. We also need to pay attention on
how price approached the liquidity level- as we discussed earlier, price
forms a vector candle which stores a very high batch of liquidity at its high,
giving us reasonable targets and bias to take a buy. Aggressive mitigations
lead to aggressive reactions; the large sell off induced a lot of traders into
shorts, as they think the market has shown its hand by heavy bearish order
flow, and as a result price hits the desired equilibrium level in which it has
now harvested liquidity to be capable of printing the next price delivery
cycle
Imbalance to re-balance theory
Not just liquidity, but imbalances within price action are important for price
to deliver in an effective way. Imbalances are very simple to understand
and are created from a large disproportion of one side of a transaction
relative to the other. This is simply created after an injection of capital,
were large volumes of orders are pumped leading to a vector candle being
formed leaving price levels where there's a very uneven formatting of buys
compared to sells and vice versa. The algorithm is designed to provide a
transparent and fair process for determining prices in the interbank market.
Imbalanced levels are re-balanced in future price action, which can occur in
a short time span or a long time span. When using imbalances, we want to
see 100% mitigation of the imbalance rather than a partial fill. The most
reactive areas for price to fill imbalance, is where there's also inducement
paired with it. This is more efficient for the algo to allow it to recuperate
more orders when re-balancing price levels for fair pricing. When price is at
an equilibrium valuation, there's more incentive for traders to get involved,
as they dont feel too early or too late. This gives an opportunity for the algo
to generate liqudity. After imbalances have been filled, a large injection
usually occurs which may leave further imbalance for future price delivery
to re-visit.

Imbalance (also known as

inefficent price action or IPA)
are one of the most high
probability area's for price to
be attracted too. When
liquidity has been taken and
imbalance has been filled we
have seen a complete cycle
of a transfer of orders and a
re-pricing to an equilibrium
point making it easier for the
algo to now distribute price
to its next desired level. As
said earlier. always make
sure its 100% mitigation for a
higher probability, and
always prioritise the
Inefficient level on the higher
time frame relative to the
lower time frame. For
example, a 15M imbalance is
more dominant than a 5M
imbalance
 Imbalance is best when paired with INDUCEMENT

Most effective when a 100% fill has been completed

Most effective if the imbalance was created during an important and high volume
session , such as London or NY

The market is in a constant stater of imbalance and RE-BALANCE

Orderblocks
An order block is a large magnitude of buy or sell orders that exist at a specific price level.
The orders are placed by the algorithm in purpose to execute a large movement or position
in the market. Orderblocks are also used in manipulation to illude heavy buying or selling
activity at a price level. Order blocks require mitigation for many reasons;

Liquidity Issues: Order blocks can create liquidity issues, as they may be larger than the
available supply or demand for a security. This can lead to delays in the execution of
orders, or to orders being filled at prices that are different from the desired price.
Market Impact: Large order blocks can have a significant impact on the market, moving
the price of the security being traded and potentially causing volatility. This can be
disruptive for traders and lead to less efficient activity and reduced liquidity.

Market regulators may limit the size of order blocks that can be placed in the market to
mitigate the impact that large order blocks can have on the market and to reduce the
potential for manipulation. Large entities (The Algo) who use order blocks may also use
techniques such as algorithmic trading or dark pools to execute their orders in a way that
reduces market impact.
Algorithmic trading is the use of advanced computer algorithms to automatically execute
trades. These algorithms can be used to split large order blocks into smaller orders that are
executed over time, which can help to reduce the impact of the order on the market.
Dark pools are private exchanges where traders can buy and sell securities without
revealing their identities or the details of their orders. This allows traders to execute large
orders without revealing their intentions to the market, which can help to reduce the
impact of the order on the market.
Orderblocks need to be used with liquidity inducment existing before price
mitigated the level. Ideally, the inducement needs to be 'immediate' ; very
close by to the OB

Breaker blocks
A breaker block is a level of price also used for mitigation by the
algorithm- it is an effective way for price to mitigate orders without
having to deliver full targeted mitigation, meaning less capital is
injected and more is pumped to the next price delivery leg. Its a
simple concept- when a bullish order block 'breaks' and becomes a
bearish order block and vice versa
Just like every mitigation we study, always assure there is inducement that
exists before the level . Breaker blocks are most effectice when the price
which causes the break is agressive, and has no inducement inside it.
Rejection block
A rejection block is an area formed after price 'rejects' or reacts aggressively
off a level, usually an important liquidity points. Rejection blocks disobey
smart money traders concepts since most of the time they don't involve a
BOS (break of structure), which allows us to get in early before the move
occurs. In algo, structure isn't used like SMC , instead it is viewed as liquidity,
or 'algo structure'. A rejection block is lower time frame confirmation for a
trade opportunity off important liquidity levels. such as protected daily highs
and lows, and session high and lows
Pay attention to how price is still obeying smart money supply chains and also bearish
structure- this is a trap a RB uses often which we will speak about later
Premium/Discount
There are a few ways that the algorithm can be used to manipulate prices in a way
that deviates from true market equilibrium.
1. High-frequency trading: The Algorithm can use high-frequency trading that
execute trades at extremely fast speeds, allowing to take advantage of small
price movements before other market participants can react. This can lead to
prices that do not reflect the underlying supply and demand of the market, as
prices can be moved rapidly and unpredictably by this high-frequency
movement
2. Lack of transparency: The Algorithm may leave order blocks, meaning that
other market participants do not have a clear understanding of their
behaviour or how they are affecting prices. This can make it difficult for other
participants to react to changes in supply and demand, leading to prices that
do not reflect true market equilibrium.

We see on this chart, how price

leaves behind an order block,
which creates this large
displacement candle down which
we refer to as a vector candle.
This leaves a very imbalanced
area of price , known as a void,
within the push down. Premium
and discount refers to the the
50% level of this gap. In this
example, the top half would be
known as premium pricing
(expensive) and the bottom half
to be discounted (cheaper). The
50% level is where price can
achieve dynamic equilibrium,
where market participants are
now comfortable getting involved
into the market which generates
more liquidity. The fixed volume
tool would be a good way of
viewing market volume
graphically, which would mirror
the data formatting in a central
bank orderbook.
This equilibrium level is obeyed since price had LIQUIDITY to take out; otherwise, this
void would have no liquidity and the high may be taken as liquidity to continue down
 Algo structure
Algo structure is a perspective of viewing structure which is aside from smart
money structure. Smart money structure studies the laws of structure and
what depicts whether the market bias is bullish or bearish, and when its going
to shift. Algo structure views structure as liquidity. Highs and lows of
structure do not need to be protected and also, the formatting of highs and
lows doesn't suggest bullish or bearishness.

Structure traps can also exist in another format, which is where price
reverses without showing a structure shift before hand. Most SMC and
retail price action traders want to see BOS for a shift or continuation in
price. Since no shift has occured, these traders still try to carry out price in
the direction its travelling. Us as traders who use liquidity, we may be
expecting price to reverse since raiding a liquidity point. If no shift in
structure occurs, we can enter and are contradicting price action traders
orders, meaning we are trading towards the markets liquidity formatting
which increases our prbability of being on the correct side of the market
This can also be viewed as a SND trap too; Supply and demand
chains are essentially formatting a retail trendline
S/R Traps
There are many forms of traps, one important one to understand is support and
resistance traps. Support and resistance traps are better when paired with other
confluences to increase the probability of a particular trade idea

These inducement levels are strengthened by support and resistance

liquidity
 The market maker model is the most frequent manipulation pattern that
exists in the market. It occurs in two forms, the market maker buy to sell,
and the market maker sell to buy model. The market maker model is
essentially a range (consolidation) of price where both buyers and sellers
are contained within support and resistance levels. Since both buyers
and sellers are heavily involved, its easy for the algo to manipulate both
sides of the market in a short time span. When price liquidates one side of
the range, it will then reverse to liquidate the other side
The market maker model is a fractal concept, which can occur on both
higher and very low time frames

Fractalized example of the market maker model

Smart money trap
A smart money trap is an orderblock which functions as a
key liquidity point rather than a mitigation area.

Key characteristics of a smart money trap:

Order block that's creates an aggressive push in price with

high volume

Has no inducement present

Smart money traps are best paired with algo structure price
delivery
No inducement and high imbalanced zones both disregarding smart money
structure concepts
News
We don't trade news events, however we still need to study
the characteristics of news events. One thing we will study is
how to trade after news events, with a concept called the
news model.
The news model is a common series of events which occurs
after a new event, which allows us to get in to very high
probability trades. News is not a random event, the direction
the market moves from a news event was already going to
happen, news is just used as a catalyst for price to deliver.
News often mitigates very important areas or can be used to
grab important liquidity levels (Mainly HTF). The low or high
of a news event becomes a high liquidity area too, and price
tends to pullback after news to take this levels out on the
intraday timeframes.

In the image, the zone

labelled 'SMT' (Smart money
trap) is the low of a bullish
news event. This low is an
unprotected low storing alot
of liquidity and hence price
comes to pullback after the
news event to take it out.
These pullback trades a high
probability trades to take
which we will look into. We
will cover smart money traps
later on and there
characteristics however
know that this SMT is a
demand zone which will not
hold
 Before the pullback after a news event
occurs, the Algo needs to harvest
liquidity, in which he can then use to
come down to take the low;

The first pullback after news is a

fake pullback and is used as
liquidity

After the first pullback has been

liquidated, we could look to get into an
entry position to target the news low
along as inline with HTF). For example, if
news had taken an important HTF
liquidity level, then the first fake pull
back gets swept and a money transfer
then occurs we can look to get into a
trade. After the news low is take, price
usually continues in that direction

Entry could be taken off the money transfer

Top Down Analysis
This chapter will cover a top down analysis , following a case study for an
intraday trade putting together things we have learnt so far. Top down
analysis begins with the highest timeframes, despite them not influencing a
bias we may have on the lower timeframe, but its useful to always take a
step back and look at the bigger picture

Top down analysis usually begins with the Monthly Chart, and the
works down in small increments down to Weekly, Daily, 12H, 4H, 1H,
15M , 5M. On the Monthly its evident price is bearish. Price has left a
Large wick and began printing bullish candles for the previous
recent months, we may expect some form of a pull back, espescialy
since also running a previous low.
WEEKLY

On the weekly, price has took inducement and filled an

imbalanced area- notice how price mitigates with an agressive
wick (algo mitigation) confirming the strength of this level. We
could expect price to continue selling from here, which is inline
with the Monthly charts overall direction. Sells to buys is also a
possible orientation of future price delivery as shown by the
red trail. This area for buys is the most probable area for price
to deliver too, since its a well priced level, with graphical
imbalance we can see that is also paired inducement under a
weekly candle
H4

H1
 15M

Our bias is for price to deliver to the relative highs above to

harvest a large amount of liquidity. This is so price can inject this
capital to come and deliver to the low on the daily chart which is
our first liquidity target. Will price does this, Asia high can also be
taken for liquidity, then as we raid the highs above we may expect
this to occur during London open, hence putting in the high of the
day. If we were to come onto the charts at this price point we
would be looking for buys, and then to sells after wards
 2M

Dropping down to the low time frames, we can see after Frankfurt
session price is dropping towards an inducement level which is below a
vector candle. Another reason this zone is valid is that its below FF
opening price, which we learnt about at the start of this book. The algo
generated buyside liquidity above in the form of a trendline , showing
buys maybe a short term target for the algo; This is in line with our bias.
As price is approaching the key inducement level where we will look for
a trade, we can also see how the algo is currently forming a market
maker model, which is a strong confluence since we are witnessing a
liquidity trapping before price hits our level. Because price has formed a
liquidity trap before hitting our level, we don't need to confirm the level
with lower timeframe confirmation such as a money transfer and sweep
of inducement. Rather, we can enter after confirming the level with our
agressive algo mitigation confluence. We wait until price hits the level
and gives an aggressive candle rejection; always wait for the candle to
CLOSE in this formation.
Now price has presented our aggressive
mitigation, we can look to enter, with
the safest place to put our Stop loss
covering the majority of the previous
candle since we deem this protected.
The most reasonable place for a first target would be Asia high, since
this is a significant level where there's a chance the algo may react
from. HTF, we except the target to be the relative highs which may be
taken and then price can inject back to sells, to take the daily low
which is our overall daily bias for price to end up
Case study 1

From HTF, our bias is to take out the high marked with a dotted line, which was the
mitigation of a smart money trap on the higher time frame

We have had a bullish asia range which lines up with our bias for buys. We
have indentified a valid level where the algo stores orders for price to
mitigate and take liquidity to fuel the move up. his build up of price is
occuring before london, which would make sense as when price comes to
mitigate at london open, we can expect it to form the low of the day here
As price approaches our level, we can see it creates a vector candle. We know
that above this vector candle stores a large amount of injected capital, which
gives more confirms for a buy; the vector candle also leaves behind a smart
money trap. Also remember how an aggressive move in = aggressive move out

Our first lower time frame

liquidity trapping now
begins to occur. Before price
mitigates our level, it
engineers a market maker
model, showing us the algo
preparing its final
generation of orders and
liquidity before
manipulating out and
mitigating our level. Seeing
people liquidiated before we
are looking to get in is strong
confirmations
Case Study 2

Our bias is to raid the internal liquidity level above. We have recently swept a HTF
liqudity level which is a key level for a reversal to push up
Within the opening hours of the trading session, we see price has liquidated
Frankfurt low, as well as Asia low which provides fuel for the algo to inject into
London buys. We can see London open has put in a low which we expect to be
the protected low of the day, which makes sense for buys. Asia also had a bullish
close, therefore this is inline with our bullish bias.

We have identified a breaker block, which is in the discount of the london open range.
This breaker is high probability since it has inducement, and also notice how there is
no inducement which occurs for the order block below it, hence we favour the
breaker
Price mitigates the level, giving an algo mitigation, and leaving behind
some small lower time frame inducment. When studying how price pulled
back into the zone, we can see a vector candle was formed, leaving behind
and smart money trap
Thankyou's
I'd like to congratulate you for reaching the end of this book, and
also thankyou again for purchasing. I hope you found this book a
worthy investment of time and money. Always be a student to
the game, the ones who work the hardest, study the hardest and
network the most are the ones who succeed. Take detail notes
and re-read as much as you need to. Back-test and gather data
on all concepts and incorporate this into your trading or build a
strategy around it.

I also offer 1-1 calls, so for further education be sure to get in

contact!

Be sure to contact me with reviews on the book and also show

me you testing and studying and making notes on the things
taught :)

@jjwurldin

@JjWurldin #7045