ANALYSIS BREAK DOWN

In making analysis the important questions to be asked are

1) Where it is going
2) Where it is coming from
3) Where it is currently

The first thing to do when making an analysis is to try and get the leading timeframe , making use of the confirmed
BMS and then use that to get the general trend ,when the leading timeframe which is most times the monthly or
an higher timeframe shows the confirmed BMS to the bearish side , then the general trend is BEARISH so we want
to look for selling opportunities going down the timeframe till we have another reverse confirmed BMS from the
leading timeframe (which is the main timeframe , the highest timeframe with the highest BMS )

Close below B confirmed the beginning of the trend

A= the market structure level

B= the close of the bar from higher timeframe that breaks the market structure

C= the close below the base of B to confirm the BMS

WHERE IT IS COMING FROM?

Based on your trading style, you want to look for entries that will align with your longer term views and it’s done
by using the sequence and going down the timeframe.

The market current action will be on any of these stages

1) Ranging 2) Retracing (Confirmed ABC) 3) Continuation of trend

NOTE: Take note of the market current level at this point and start applying your analysis ( either using the chart
patterns, Elliot waves or whatsoever pattern you are known for ) for those making use of TTS you want to go down
to the next step
 RETRACEMENT

The market must FIRST make a confirmed retracement BMS, that automatically becomes the leading timeframe
for the retracement (and according to the rule the leading timeframe is where you want to get your counter
BMS to continue the general trend) so we have to trade in line with the retracement or wait for the exhaustion of
the retracement to join the main trend.

Retracement Guideline
1) The retracement main timeframe is the timeframe to terminate the retracement with a reverse BMS confirmed
break

RULES
1) Ensure to see only two sides of the retracement

A. Where it is coming from

B. Where it is going to be terminated

2) You want to see the retracement as a channel where the following levels defined the corrective wave of the
channel

A. Moving average
B. Retracement Point of Interest
C. Fake BMS (A non –confirmed BMS)

Moving Average: a level where price is likely to form the little retracement inside the retracement to hit the initial
target of the main retracement

R. P.O.I (retracement point of interest): The market structure region between two moving average region from
the RET P.O.I m a close below this levels predict the end of the trade.

Fake BMS (A non –confirmed BMS): Areas where the market is likely to form a BMS to continue the general trend
but the price won’t form a conserved C to mark the end of the retracement.
 ENTRY STYLE

1) Perform a bit by bit timeframe analysis to know the leading retracement cycle (going downward the timeframe)
and then join the trade from there using BMS

2) Use a breakout entry method (to continue the retracement)

3) Enter from the RPOI, moving average levels at the formation of the Middle close bar (continue the retracement)

A B C

The three stages of retracement guided by the general rules and guidelines as the retracement unfolds.

STAGE A: The retracement starts and then the box region is as a result of The Moving Average Effect that give the
corrective wave to continue the bearish move, that box region is to be assumed the wave B, but since we are
focused on the BMS so it’s just another wave that projects price downwards

STAGE B: Very sharp retracement with little cause from The Moving Average / Orderblock to give us the dip wave
B correction.

STAGE C: Price after confirming the BMS returned back to the R.P.O.I Zone and continue the retracement

Take note of the BOLDED , the diagram does not predict that is general movement of a retracement , it can come
in different pattern so as long as the GUIDELINE still stands the bolded are region likely to take you off balance
from trading the RETRACMENT TREND.
 RANGING

The Ranging timeframe is the timeframe with the highest opposition bar in respect to the duration /period of the
general trend timeframe.

If the monthly timeframe is the main timeframe, the ranging main timeframe is the highest opposition bar that
causes the present range at the period of the month.

It is best to see the general wave of the retracement as an A TO B movement , making just two confirmed BMS,
the starting BMS and the counter BMS that’s continues the trend.

The range will always come in two styles

A B

Diagram A
The market performed a short cycled trend from a-b (I.e. BMS at a and reverse BMS at b) and then
continue its movement

Diagram B
The market performed a retracement BMS but failed to continue the trend with the c confirmation

NOTE: The difference between Diagram A & B, is this at A, there is a confirmed C but THE TREND
WAS SHORTENED BY THE IMMEDIATE RESPONSE OF FORMING ANOTHER BMS that is
confirmed and reversed.

WHILE IN B
There is no confirmed C

At A, the movement happened in the same timeframe and it's rough WHILE IN B the movement
happened so sharp and two timeframe is needed to interpret due to the smooth Termination

NOTE: Price will continue to form the range until there is a break of the RMT (Range main timeframe
support /resistance) ,An expanded range is likely to occur (a range with bigger cause ) if there is a shift
in the R.M.T that is the intermediate higher timeframe forms its own opposition bar, when this occur it
repeats the range cycle

A CONFIRM BREAK BELOW THE R.P.O.I. CONFIRMS THE END OF THE RANGE
WHAT TO DO IN RANGE

1) Use the breakout entry to catch the trade at the middle point

2) Stay out

3) Risk less and stay with the general trend

4) Do a bit by bit timeframe analysis to know the current retracement cycle to get good entry spots

See the picture below to understand how to trade the range breakout

WHERE IT IS GOING TO
This is the place we look to set our target and exit, we can make us of the exit styles from the trading
plan to find a way to come out of the market.

Exit Region
1) Confluence zones
2) Orderblock Region
3) Moving average Target
4) Support and Resistance based region