BTMM STRATEGY

LESSON OBJECTIVES
>TO UNDERSTAND WHAT MARKET MAKERS ARE AND THEIR OBJECTIVES.
>TO UNDERSTAND HOW MMS MANIPULATE OR MOVE THE MARKETS.
>TO IDENTIFY STOP HUNTS AND STANDOUT FROM MOST RETAIL TRADERS.
>TO BE ABLE TO TRADE ‘M’ AND ‘W’ FORMATIONS.
>TO COMBINE BTMM STRATEGY WITH OTHER INDICATORS FOR HIGH
PROBABILITY CONFLUENCE TRADING.
>TO EXERCISE PATIENCE AND MAKE CONSISTENT PROFITS.

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 MARKET MAKERS
WHAT ARE MARKET MAKERS?
>MARKET MAKERS ARE A COLLECTION OF MAJOR FINANCIAL INSTITUTIONS
& SOME BROKERS THAT ARE ABLE TO MOVE THE MARKET IN THEIR DESIRED
DIRECTION AGAINST RETAIL TRADERS UP TO A CERTAIN LEVEL WITH AN
AIM OF MAKING MONEY.
>THE ABBREVIATION ‘BTMM’ STANDS FOR ‘BEAT THE MARKET MAKERS’
HENCE THE MAIN AIM OF THIS LESSON.
>RETAIL TRADERS ARE THE REST OF THE TRADERS WITHOUT THE ABILITY
TO MOVE THE MARKET.
MARKET MAKER OBJECTIVES
>INDUCE TRADERS TO TAKE POSITIONS.
>CREATE PANIC & FEAR TO GET TRADERS TO THINK IRRATIONALLY.
>HIT STOP LOSSES & CLEAR ORDERS.
>FORCING TRADERS INTO MARGIN TROUBLE AND POCKETING THEIR
MONEY.
 WHAT HAPPENS IN A TYPICAL DAY
➢ THREE SESSIONS : ASIAN → LONDON → NEW YORK
➢ ACCUMULATION – THE INITIAL HIGH (H.O.D) & LOW (L.O.D) OF THE DAY
ARE SET.
➢ STOP HUNT – FALSE MOVE OUT OF THE ASIAN RANGE AGAINST THE REAL
INTENDED MOVE
➢ TREND MOVE – REAL MOVE THAT USUALLY GOES SIX - EIGHT HOURS
SLOW AND STEADY
➢ END OF DAY – REVERSAL OF THE HIGH/LOW BACK INTO CONSOLIDATION
➢ N:B – THE BTMM PATTERN CAN ALSO BE SEEN IN ALL TIME INTERVALS i.e
THE BEGINNING/END OF A :
-SEASON
-WEEK
-SESSION (SMALLER TIMEFRAMES)
 TRADING HOURS (GMT TIME ZONE)
➢ 2100HOURS - HIGH/LOW RESET
➢ 2100HOURS TO 0000HOURS – END OF DAY GAP TIME (DEAD GAP)
➢ ASIAN SESSION [0030HOURS TO 0700HOURS] – ACCUMULATION
➢ LONDON SESSION [0730HOURS TO 1300HOURS] – STOP HUNT/ TREND
MOVE
➢ NEW YORK SESSION [1330HOURS TO 2100HOURS] – REVERSAL/ E.O.D
(End OF Day) CONSOLIDATION
BULLISH
CYCLE

F
A
 PHASES OF THE MARKET MAKER CYCLE
➢ INDUCE → TRAP → SHIFT
➢ 3 LEVELS OF RISE/DROP
➢ ‘M’ OR ‘W’ FORMATION AT THE HIGH/LOW OF THE DAY (H.O.D / L.O.D)
➢ REVERSAL BACK TO THE RANGE INTO CONSOLIDATION
BULLISH
CYCLE

E
F
SHIFT OUT OF ZONE
D
B
SELLERS ARE
3 PUSHES DOWN INDUCE TRADERS
A TRAPPED IN
TO GO SHORT
C THIS ZONE
 BULLISH CYCLE - FROM THE CHART (GBPJPY M15)
DURING THE ACCUMULATION PHASE (ASIAN RANGE) WE HAVE 3 PUSHES
DOWN TO INDUCE TRADERS (MAINLY THOSE WHO TRADE SUPPORT AND
RESISTANCE BREAKOUTS) TO GO SHORT AND END UP BEING IN A DRAW
DOWN DURING THE ‘W’ FORMATION LEADING TO THEIR STOP LOSSES BEING
HIT WHEN THE MARKET SHIFTS OUT OF ZONE.
AT ‘A’ SOME TRADERS GO LONG BASING WITH THE FORMATION OF A
BULLISH CANDLE AND SET THEIR STOP LOSS AT ‘C’ ANTICIPATING A TREND
REVERSAL.
AT ‘B’ SOME TRADERS GO SHORT RIDING WITH THE TREND (YELLOW LINE)
AND SET THEIR STOP LOSSES AT ‘D’.
WHEN THE MARKET REACHES ‘C’ STOP LOSSES OF BUYERS AT ‘A’ ARE HIT
AND WHEN IT REACHES ‘D’ STOP LOSSES OF SELLERS AT ‘B’ ARE ALSO HIT,
ALLOWING THE MARKET MAKERS TO SHIFT OUT OF THE TRAP ZONE WITH
ONLY A FEW WHO BOUGHT AT ‘C’, FILTERING OUT MOST RETAIL TRADERS.
SOME TRADERS RECOGNIZE THE PATTERN LATER WHEN IT HAS OCCURRED
AND BUY AT ‘E’ AND SET THEIR STOP LOSSES AT ‘F’ WHICH ARE HIT AS THE
MARKET PROCEEDS.
[WE ARE GOING TO FURTHER LOOK INTO THESE LEVELS AS WE PROCEED
WITH THIS TOPIC]
 BUYERS ARE TRAPPED
C
BEARISH A
IN THIS ZONE

3 PUSHES UP INDUCE
CYCLE TRADERS TO GO LONG

B
D
F
E
SHIFT OUT
OF ZONE

END OF DAY ASIAN SESSION

(GAP TIME) (ACCUMULATION PHASE)
LONDON SESSION

STOP HUNT/TREND MOVE

ASIAN SESSION NEW YORK SESSION

(ACCUMULATION PHASE)
(END OF DAY REVERSAL
& CONSOLIDATION)
 BEARISH CYCLE - FROM THE CHART (GBPCHF M15)
DURING THE ACCUMULATION PHASE (ASIAN RANGE) WE HAVE 3 PUSHES UP
TO INDUCE TRADERS (MAINLY THOSE WHO TRADE SUPPORT AND
RESISTANCE BREAKOUTS) TO GO LONG AND END UP BEING IN A DRAW
DOWN DURING THE ‘M’ FORMATION LEADING TO THEIR STOP LOSSES BEING
HIT WHEN THE MARKET SHIFTS OUT OF ZONE.
AT ‘A’ SOME TRADERS GO SHORT BASING WITH THE FORMATION OF A
BEARISH CANDLE AND SET THEIR STOP LOSS AT ‘C’ ANTICIPATING A TREND
REVERSAL.
AT ‘B’ SOME TRADERS GO LONG RIDING WITH THE TREND (YELLOW LINE)
AND SET THEIR STOP LOSSES AT ‘D’.
WHEN THE MARKET REACHES ‘C’ STOP LOSSES OF SELLERS AT ‘A’ ARE HIT
AND WHEN IT REACHES ‘D’ STOP LOSSES OF BUYERS AT ‘B’ ARE ALSO HIT,
ALLOWING THE MARKET MAKERS TO SHIFT OUT OF THE TRAP ZONE WITH
ONLY A FEW WHO SOLD AT ‘C’, FILTERING OUT MOST RETAIL TRADERS.
SOME TRADERS RECOGNIZE THE PATTERN LATER WHEN IT HAS OCCURRED
AND SELL AT ‘E’ AND SET THEIR STOP LOSSES AT ‘F’ WHICH ARE HIT AS THE
MARKET PROCEEDS.
[WE ARE GOING TO FURTHER LOOK INTO THESE LEVELS AS WE PROCEED
WITH THIS TOPIC]
 EMAs & LEVELS
➢ EMAs (EXPONENTIAL MOVING AVERAGES) CROSSOVERS ARE USED AS
EXTRA CONFIRMATION TO IDENTIFY CERTAIN LEVELS AND PHASES OF
THE MARKET MAKERS PATTERN.D
➢ 5 EMAs ARE USED AND ARE AS FOLLOWS :
5 – YELLOW
SIGNAL LINES
13 – RED
50 - AQUA
DETERMINE UPTREND OR DOWN TREND
200 – WHITE MARKET MAKERS OVERALL TREND
800 – BLUE (CROSSOVERS USUALL SEEN ON HIGHER TIMEFRAMES
EMAs CAN BE USED:
➢ TO CONFIRM A REVERSAL PATTERN LOCK ( 5/13 OR 13/50 CROSSOVER)
➢ LEVELS ( LEVEL 1- 13/50; LEVEL 2- 50/200; LEVEL 3-50/800 OR 200/800)
➢ MORE CONFIDENCE TO TRADE Ms, Ws, Vs & INVERTED Vs
 BEARISH 5/13 CROSS REVERSAL PATTERN’S LOCK AT H.O.D

CYCLE 13/50 CROSS (LEVEL 1 DROP)

AND ALSO REVERSAL PATTERN’S LOCK

50/200 CROSS – LEVEL 2 DROP (DOWNTREND

CONFIRMATION)
50/800 CROSS LEVEL 3
ASIAN SESSION OVERALL TREND
(ACCUMULATION PHASE)
DIRECTION
LONDON SESSION
(STOP HUNT/TREND MOVE)
END OF DAY
(GAP TIME)

END OF DAY
(GAP TIME)

ASIAN SESSION
NEW YORK SESSION (ACCUMULATION PHASE)
(END OF DAY REVERSAL
& CONSOLIDATION)
 BEARISH 5/13 CROSS REVERSAL PATTERN’S LOCK AT H.O.D

CYCLE 13/50 CROSS (LEVEL 1 DROP)

AND ALSO REVERSAL PATTERN’S LOCK

50/200 CROSS – LEVEL 2 DROP (DOWNTREND

CONFIRMATION)
50/800 CROSS LEVEL 3
ASIAN SESSION OVERALL TREND
(ACCUMULATION PHASE)
DIRECTION
LONDON SESSION
(STOP HUNT/TREND MOVE)
END OF DAY
(GAP TIME)

END OF DAY
(GAP TIME)

ASIAN SESSION
NEW YORK SESSION (ACCUMULATION PHASE)
(END OF DAY REVERSAL
& CONSOLIDATION)
 BULLISH END OF DAY
(GAP TIME)

CYCLE
LONDON SESSION
(STOP HUNT/TREND MOVE) ASIAN SESSION
(ACCUMULATION PHASE)

END OF DAY
(GAP TIME) 50/800 CROSS LEVEL 3
OVERALL TREND DIRECTION

50/200 CROSS – LEVEL 2 RISE (UPTREND

CONFIRMATION)

13/50 CROSS (LEVEL 1 RISE)

AND ALSO REVERSAL PATTERN’S LOCK
ASIAN SESSION 5/13 CROSS REVERSAL PATTERN’S LOCK AT L.O.D
(ACCUMULATION PHASE)
NEW YORK SESSION
(END OF DAY REVERSAL
& CONSOLIDATION)
 BULLISH END OF DAY
(GAP TIME)

CYCLE
LONDON SESSION
(STOP HUNT/TREND MOVE) ASIAN SESSION
(ACCUMULATION PHASE)

END OF DAY
(GAP TIME) 50/800 CROSS LEVEL 3
OVERALL TREND DIRECTION

50/200 CROSS – LEVEL 2 RISE (UPTREND

CONFIRMATION)

13/50 CROSS (LEVEL 1 RISE)

AND ALSO REVERSAL PATTERN’S LOCK
ASIAN SESSION 5/13 CROSS REVERSAL PATTERN’S LOCK AT L.O.D
(ACCUMULATION PHASE)
NEW YORK SESSION
(END OF DAY REVERSAL
& CONSOLIDATION)
 IMPORTANCE OF ‘M’ & ‘W’ PATTERNS
➢ ‘M’ & ‘W’ PATTERNS ARE THE REVERSAL FOOTPRINT OF MARKET MAKERS
➢ THEY ARE FOUND AT THE L.O.D & H.O.D
➢ IT IS WHERE HIGHER LEVEL LONGS AND LOWER LEVEL SHORTS ARE
TRAPPED
➢ WHEN THE MMs ARE DONE COLLECTING CONTRACTS, THEY WILL SHIFT
THE ZONE WITH A “SHIFT CANDLE.”
➢ THE PATTERN WILL TELL US THE DIRECTION OR BIAS FOR THE SESSION
OR DAY
 TWO COMMON TYPES OF ‘M’ & ‘W’ PATTERNS

REGULAR EXTENDED

NB : ‘M’ & ‘W’ PATTERNS FORMED ARE NOT LIMITED TO THE ONES ABOVE,
THERE ARE OTHER VARIOUS TYPES.
 WEEKLY PRICE MOVEMENTS
➢THE WEEKLY PATTERN DOES NOT IMPLY THE USE OF A WEEKLY TIME FRAME.
➢IT REFERS TO A PATTERN THAT CAN BE SEEN IN A 15, 60 OR 240 MINUTE CHART
➢PRICE MAY MOVE IN ONE TREND DURING THE WHOLE WEEK OR INCUR MID-WEEK
REVERSALS DUE TO FUNDAMENTALS (NEWS)
➢WHEN PRICE MOVES IT FORMS 3 LEVELS (INTRADAY PUSHES) SIMILAR TO THE ONES
FORMED IN THE DAILY TIME FRAME
➢HOWEVER THESE LEVELS ARE NOT LIMITED TO EMA CROSSOVERS MEANING THAT
THEY CAN BE COUNTED WITHOUT SOME EMA CROSSOVERS
➢THESE 3 LEVELS WILL NOT PRESENT THEMSELVES WEEKLY ON EVERY PAIR SO I
ADVISE YOU TO BE VERY SELECTIVE INORDER TO EXECUTE YOUR TRADES IN THE
RIGHT MARKET STRUCTURE
KEY MON TUE WED THU FRI
L3
ASIAN SESSION

LONDON SESSION

NEW YORK SESSION

L2

L1
 TIPS
➢THIS CYCLE HAS TO BE SEEN WITH CLARITY
➢IF A PAIR DOES NOT SHOW THE CYCLE CLEARLY, DO NOT CONFUSE OR STRESS
YOURSELF, JUST SIMPLY OPEN ANOTHER CHART AND IDENTIFY THE CYCLE WITH
CLARITY
➢A LEVEL IS DEFINED AS A LONG SUSTAINED RUN, DAYS OF CONSOLIDATION SHOULD
NOT BE SEEN AS LEVELS

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