Mikke Gratterro Educa

1
About Us
Chart-Master FX
CMF is a forex trading company based in South Africa.
Kudakwashe Mazibisa (Chart Master) is the author of
this book and the co-founder of CMF. The goal of CMF
is to help traders understand price movement with
precision. CMF believes in teamwork, research, and
hard work. The CMF trading style is rooted in RTM.
chartmasterfx@gmail.com
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Copyright Rights
Copyright © 2021 CMF | All rights reserved
The anatomies and flashcards in this book are
exclusively owned by Chart-Master FX. This book or
any portion thereof cannot be distributed, transmitted,
or broadcasted without the express written permission
of the author.

Acknowledgements
My sincere gratitude goes to the founder of RTM (If

Myante), his discoveries in forex trading will forever be
cherished. The flag limit engulf price action was
invented by the great man IF Myante.
The flag limit engulf price action is a difficult concept

that might not be understood by newbies in RTM. As
the author of this book, I managed to expand the flag
limit engulf price action so that it can be understood by
everyone.

Disclaimer
No liability will be assumed to Chart-Master FX for any

losses incurred, as a result of using the strategies in
this book. Forex trading carries a high level of risk and
is not suitable for all persons.

Book Synopsis
There are several price action patterns to wait for
before placing a trade. The best of them all is ENGULF.
But engulf of what! Engulf of a flag limit. The engulf of
a flag limit is one of the most important price action
that can be used to determine the directional bias at a
particular moment.
This book will focus on the application of the engulf

philosophy in flag limits. The book is segmented into
three chapters; Swap Level FL Engulf, Supply and
Demand FL Engulf, and Quasimodo Level FL Engulf.
The Swap Level FL Engulf is classified into two

categories; Blind Spot and Kink. On the other hand,
the SnD FL Engulf is classified into two classes; SnD
inside the Pivotal Flag Limit and SnD outside the
Pivotal Flag Limit.

List of Abbreviations
Abbreviation Full Description Abbreviation Full Description
ACC Acceleration LS Left Shoulder
BE Bearish/Bullish Engulfing MM Mera-Mera
CCC Cho-Cho-Cho P-ENG Pin Engulf
DBR Drop Base Rally P-FL Pivotal Flag Limit
DBD Drop Base Drop QML Quasimodo Level
D-ENG Deep Engulf RBD Rally Base Drop
D-QML Double QML RBR Rally Base Rally
DJ Doji SL Stop Loss
DP Decision Point SnD Supply and Demand
ENG Engulf TG Target
FL Flag Limit V1 MM Version 1 Momentum
FTB First Time Back V2 MM Version 2 Momentum
HB Hidden Base WBS Wick Body Separator

Contents Page
1 Conceptualization of Key Attributes 9
2 Targets 23
3 Fundamental Anatomies 28
4 Decision Points 37
5 Chapter 1: Swap Level FL Engulf 42
6 Chapter 2: SnD FL Engulf 81
7 Chapter 3: QML FL Engulf 158

Conceptualization of Key Attributes
Introduction

Engulf
Types of Engulf
Application
There are two types of The concept of Engulf is widely used in RTM. The concept
engulfs; pin engulf and is similar to the ICT term called Break of Market Structure
deep engulf. (BMS). The engulf has got wide applications in RTM. This
book concentrates on the application of the engulf theory
in flag limits.
Flag limit engulf can be used to determine the directional

bias of the market. In a sell scenario, an engulf of a flag
Definition of Engulf limit to the downside implies that the price wants to
In a literal sense, an continue going southwards. When the price engulfs a flag
engulf is the break of a limit it often retraces back to an SSR, QML, Left Shoulder,
low or high. or SnD before continuing downwards. Therefore, there
are trading opportunities that arise as soon as the price
makes an Engulf price action.

Pin Engulf
Definition Application
A pin engulf occurs when The moment the price makes a pin engulf usually the
the price breaks a flag price goes to the QML or the last supply or demand zone.
limit and retraces
immediately after If the pivotal flag limit is wide, there is a possibility that the
engulfing the P-FL. price might retrace to an SnD inside the P-FL.
Most of the time the pin engulf manifests itself in the form
of a wick.
As the name implies, the

price should pin engulf
the flag limit as shown by
the image.

Deep Engulf
Application
Definition
There are three possible trade opportunities that are
Deep engulf price action
created when a deep engulf occurs. The trade
occurs when the price
opportunities are found at the Swap Level, QML, or SnD
breaks a flag limit and
Zone. There are various factors that are taken into
retraces back after some
consideration to predict where the price is more likely to
time.
retraces from. The factors include momentum, the
freshness of the decision point, and confluence.
If the momentum is weak,

the price is more likely to
retrace back to the QML or
SnD zone. Conversely, if the
momentum is very strong
there are higher chances
that the price will retrace on
the swap level.

Left Shoulder
A left shoulder is a left Left shoulders are important because there are used to
neckline that has the construct flag limits or kinks. It is a key ingredient in
potential to hold the price reading the market.
on FTB.
In order for a left shoulder

to be considered valid,
there should be a Head.

Flag Limit
Definition Narrow Flag Limit

A flag limit occurs when
A flag limit is classified as an NFL if the price makes a
there is a break of a
small reaction along a support or resistance. The reaction
resistance or support. The
is usually in the form of a single candlestick such as a DJ,
price must retrace soon
MM, BE, or HB.
after breaking SR then
continue going in the
intended direction. Wide Flag Limit
A flag limit is classified as a WFL if the price makes a
deep retracement on a support or resistance. The
retracement is considered wide because it consists of
There are two types of multiple candles. The flag is usually in the form of a Drop
flag limits; the narrow flag Rally Drop or Rally Drop Rally.
limit and the wide flag
limit.

Pivotal Flag Limit
A pivotal flag limit is the The moment a flag limit is engulfed, it gives us directional
main condition that needs bias in the engulfed direction. The moment the engulf flag
to be satisfied to consider limit occurs the price usually retraces either to the Swap
the flag limit engulf setup Level, Quasimodo Level, or the SnD Level. As a trader,
valid. you need to assess where the price is more likely to
retrace among the three candidate levels mentioned
above.
A flag limit can only be

called a pivotal flag limit if
an engulf price action
occurs.

Quasimodo Level
There are various types of QMs such as the general QML,
A QML is a left shoulder
CCC-QML, FL-QML, DJ-QML, BE-QML, HB-QML, MM-
that satisfies the engulf
QML, WBS-QML, and D-QML.
price action of a low or
high.
A general QML is a decision point that does not have an
associated candlestick pattern. The other types of QMLs
with extra candlestick confirmations are known as
advanced QMLs.

Supply and Demand
Definition Supply
SnD zones are used as There are two types of supply; Drop Base Drop (DBD)
decision points and for and Rally Base Drop (RBD). An RBR is classified as a
taking profits. continuous decision point whereas RBD is classified as a
reversal decision point.
Demand
There are two types of demand; Rally Base Rally (RBR)
An SnD is a decision and Drop Base Rally (DBR). An RBR is classified as a
point that is used to take continuous decision point whereas DBR is classified as a
trades after a particular reversal decision point.
price action has been
made.

Swap Level
Definition Buy Setup

In a buy scenario, a swap level is a resistance line located
A swap level is the bottom
at the engulf section of the pivotal flag limit with either a
side of the pivotal flag
Clean Break Out (CBO) or Kink price action.
limit.
Sell Setup
In a sell scenario, a swap level is a support line located at
the engulf section of the pivotal flag limit. with either a
A Swap Level is the first
Clean Break Out (CBO) or Kink price action.
place to look for a trading
opportunity soon after the
deep engulf price action
has been satisfied.

Momentum
Definition Version 1 Momentum

The variable momentum V1 momentum materializes when the price makes a
is imperative when straight pole without making any pauses along the way. In
dealing with swap levels. order for V1 MM to be considered valid, the price should
Momentum is simply the immediately return to the decision point soon after making
strength of the move in a the straight line.
particular direction.
Version 2 Momentum
V2 momentum occurs when the price makes two straight
If the momentum makes a
poles with a pause at the middle area. In other words, this
straight pole then the
kind of momentum is like an RBR or DBD. The straight
momentum is considered
lines should be maintained as the price will be moving in a
strong. There are two
particular direction. The price should immediately come
types of momentum; V1
back to a decision point after making an RBR or DBD.
MM and V2 MM.

Cho-Cho-Cho
Application
Definition The CCC should have touches from both directions in
A Cho-Cho-Cho is a term order to be considered valid. For example, if you a
that was coined by the dealing with a sell setup, there should be a resistance
Chart Master which touch to make the CCC valid. On the other hand, if you
simply means a QML are dealing with a buy setup, there should be at least one
aligned with a significant support touch to consider the CCC valid.
support and resistance.

Wick Body Separator
The WBS is a term that The QML is what we call the separator. It should be the
was coined by the Chart demarcation line cutting across the wicks and bodies of
Master. A WBS is the candlesticks. The wicks should be at the other side of
considered valid if the the QML while the candle bodies must be at the other side
QML separates the wicks of the QML.
and bodies of the
candlesticks.

Kink
A kink is a small reaction A kink is a flag limit that occurs at a support or resistance
of price that occurs at a level. The kink is usually a single called such as a BE, HB,
resistance or support line. MM, or DJ.
The word kink and the word flag limit can be used
interchangeably.
In most cases, NFLs are

classified as kinks.

Targets
LS, QML, SnD

Targets
Definition LS
A TG is a well-calculated
level to take all or partial A left shoulder is an important level that is used in price
profits. There are various action trading. An LS is simply a level located to the left
levels to use when taking side of the Head and Shoulder pattern.
profits namely the Left
Shoulders, Quasimodo QML
Levels, Supply and
Demand zones. A QML is an advanced type of LS that takes into
consideration the engulf of a low or high.
SnD
An SnD can also be used as a target. It can be in the form

of an RBR,DBR,RBD or DBD.

LS Target
LS
A left shoulder is an important level that is used

in price action trading. It is a very powerful place
to look for targets. A left shoulder is simply a level
located to the left side of the head and shoulder
pattern. Unlike the QML, there is no need to wait
for an engulf of a low or high to classify the swing
point as a left shoulder.

QML Target
QML
A QML is an advanced type of LS that takes into
consideration the engulf of a low or high. In a
buy setup, there should be an engulf of a high (H)
whereas in a sell setup there should be an
engulf of a low (L).
A QML is a powerful target to always consider

when looking for a target.

SnD Target
Supply
In the case of a buy setup, it is important to look

for a DBD or RBD as a potential place to take
your profit.
Demand
In the case of a sell setup, it is important to look
for an RBR or DBR as a potential place to take
your profit.
Even if SnD works on targets, it is not as

powerful as a left shoulder, QML, or an FL target.

Fundamental Anatomies
Overall Anatomy
Buy Setup
The buy setup of the flag limit engulf consists of three
possible buying opportunities. The first opportunity is at
the Swap Level. The chances are high that the price
will react at the swap level if the momentum is strong.
Additionally, if the swap level is aligned with a CBO, DJ,
MM, HB, or BE then the price is more likely to respect
the swap level.
Secondly, the price can decide to bounce at the QML

especially when the approach is good. Finally, there is
also a possibility that the price might bounce at the
SnD Level. The SnD Level is more likely to hold the
price if it is in the form of a DJ, BE, HB, or MM.

Overall Anatomy
Sell Setup
The flag limit should be created from a valid support or
resistance. The price should make an engulf price
action before returning to any of the three possible
selling points.
It is important to always assess the best possible
place where the price is more likely to retrace. Most of
the time if the V1 MM condition is met and if there is a
kink aligned with the swap level then it is more likely
that the price will react at the swap level.
The second place where the price is more likely to

react is on the QML. A QML that is associated with a
kink is more likely to hold the price on FTB.
The last possible place to anticipate a trading

opportunity is at the SnD zone. An SnD zone
associated with a BE, HB, MM, or DJ is more likely to
hold the price on FTB.

Momentum
MM
Momentum is a crucial variable to always consider in
forex trading. This book focuses on two types of
momentum namely V1 MM and V2 MM.
V1 MM
The price should make a straight pole. The red
straight pole shows that sellers are in control
whereas the blue straight pole shows that buyers are
in control. In order for V1 to be valid, the price should
immediately come back to a decision point soon after
making the straight pole.
V2 MM
In order for V2 momentum to be considered valid, the
price should make a DBD or RBR structural pattern.
The price should maintain the straight poles to
consider the momentum valid.

Compression
CP
Compression is the taking away of orders as the price
will be approaching a significant decision point.
Compression is a price approach that is worth
checking all the time. It is easy for the price to cover a
compressed zone since many orders will have been
consumed already. Research has shown that a
decision point is more likely to be respected if the
price approaches it in a compressing manner.
Sell Setup
In the context of a Sell setup, compression is the
taking away of demand orders as the price will be
approaching an important decision point.
Buy Setup
In the context of a Buy setup, compression is the
taking away of supply orders as the price will be
approaching an important decision point.

QML Flag Limit
QML-FL
The anatomy shows a Buy and Sell example of the
QML flag limit. A QML flag limit is a DBD or RBR kink in
form of a DJ, HB, BE or MM. The QML should cut
through the decision point to consider it a valid flag limit
or kink.

Wick Body Separator
WBS-QML
The anatomy shows a Buy and Sell example of the
WBS setup. As shown on the anatomies, the QML
must separate the wicks and the bodies.
Sell Setup
For a Sell setup, the wicks should be above the QML

whereas the bodies below the QML.
Buy Setup
For a Buy setup, the wicks should be below the QML
whereas the bodies above the QML.

Cho-Cho-Cho
CCC-QML
The anatomy shows a Buy and Sell setup of a CCC-
QML.
Sell Setup
For a Sell setup, there should be at least one support
touch to consider the setup valid.
Buy Setup
For a Buy setup, there should be at least one

resistance touch to consider the setup valid.

Double-QML
D-QML
The anatomy shows both the Sell and Buy version of a
Double QM.
Sell Setup
For a sell version of the D-QML. There should be at
least two resistance touches of equal height.
Buy Setup
For a buy version of the D-QML. There should be at
least two support touches of equal height.

Decision Points
BE, MM, HB, DJ

Bearish/Bullish Engulfing
BE- Decision Point
BE
A BE engulfing pattern consists of two opposite
candlesticks. One candle should be bigger than the
other.
Bearish Engulfing
A bearish engulfing pattern consists of a minor
bullish candle and a major bearish candle. The
major bearish candle should be bigger than the
bullish candle. Both the body and the wick of the
smaller candle must be engulfed by the bearish
engulfing candle.
Bullish Engulfing
A bullish engulfing pattern consists of a minor
bearish candle and a major bullish candle. The
major bullish candle should be bigger than the
bearish candle. Both the body and the wick of the
small candle must be engulfed by the bullish
engulfing candle.
Mera-Mera
MM- Decision Point
MM
The Mera-Mera candlestick pattern consists of two
candlesticks of the same family.
Bearish MM
A bearish MM consists of two bearish candles. The
wick of the second candle should engulf both the body
and the wick of the first candle.
Bullish MM
A bullish MM consists of two bullish candles. The wick
of the second candle should engulf both the body and
the wick of the first candle.

Hidden Base
HB - Decision Point
HB
A hidden base can be clearly seen in a timeframe
lower than the time frame under consideration. For
example, if you are analyzing H1, a hidden base is
clear in M30 and below.
Bearish Hidden Base

A bearish hidden base consists of two bearish
candles. Both candles must have small wicks. The
zone is drawn by connecting the apexes of the wicks.
Bullish Hidden Base

A bullish hidden base consists of two bullish candles.
Both candles must have small wicks. The zone is
drawn by connecting the apexes of the wicks.

Doji
DJ-Decision Point
DJ
A Doji candlestick pattern can be in the form of a DBR,

DBD, RBR or RBD.
Supply DJ
A supply DJ occurs on a DBD, or RBD. The color of the
DJ does not matter.
Demand DJ
A demand DJ occurs on an RBR or DBR. The color of
the DJ does not matter.

Swap Level Flag Limit Engulf
Chapter 1

Blind Spot FL Engulf
Sell Setup
One of the conditions that need to be satisfied when
dealing with a blind spot FL Engulf is momentum. The
momentum should be in the form of V1 MM most
preferably.
The clean breakout (CBO) condition must be satisfied
as well. The candle that breaks the swap level must be
a Marubozu.
If the conditions stated above have been satisfied then

a trade can be placed at the swap level with an
anticipated target profit at the apex of D-ENG.

Blind Spot FL Engulf
Buy Setup
The Momentum, CBO, and Marubozu conditions must

be satisfied. Once the conditions have been met, a
trade can be taken along the swap level.
The main limitation of this setup is finding an ideal

place to put a Stop Loss. Since there is no
predetermined position to put the SL, the stop loss can
be 10 to 20 pips above the entry-level.

Kink FL Engulf
Sell Setup
The anatomy shows another dimension of the swap

level. Instead of having a CBO along the swap level,
the price creates a valid kink such as a DJ, BE, HB or
MM.
The V1 MM condition must be met. In other words, the

momentum of the price should be very strong.
The conservative target should be at the apex of D-

ENG.

Kink FL Engulf
Buy Setup
The V1 MM condition must be satisfied. In some cases,
the momentum might not be in the form of V1 MM but
must generally be strong in order to consider the setup
valid.
The stop loss must be placed below the kink area.
The engulf price action must be deep. If the price

makes a pin engulf then there is no need to place a
trade along the swap level. It is better to wait for the
price to retrace back to the QML or SnD zone.

AUDPLN, M30
Trade Analysis
The price managed to break the
pivotal flag limit with heavy
acceleration (V1 MM). A kink was
created along the swap level. The kink
is in the form of a DJ candlestick
pattern.
The price managed to visit the DJ kink

and respected it upon arrival.
Thereafter, the price dropped
southwards as anticipated.
The target should be at the depth of

the engulf price action.

AUDPLN, H4
Trade Analysis
The acceleration of price during the
engulf price action is classified as
very strong (V1 MM). A kink was
created along the swap zone level.
The price approached the kink in the

form of compression (Good Sign).
Upon arrival to the FL-DP, the price
dropped covering the compressed
territory. The price managed to go
beyond TG.

BTCUSD, M15
Trade Analysis
There was a Doji aligned with a swap level. The
acceleration was in the form of V1 MM. The price
compressed towards the DJ zone.
The price respected the DJ zone upon arrival and

went northwards.

AUDPLN, H1
Trade Analysis
The price created a DJ
candlestick pattern along
the swap level. In other
words, the DJ is in the
form of a flag limit. The
acceleration of price to the
downside was heavy at
first. However, the
momentum started to
weaken as the price went
further down. In this
manner, the momentum is
neither V1 MM nor V2 MM.
The DP was finally

respected by price and
went in the anticipated
direction.

GBPUSD, M30
Trade Analysis
pivotal flag limit with strong
acceleration (V2 MM).
The price managed to visit the
swap level and went down upon
arrival as predicted.

BTCUSD, H1
Trade Analysis
The chart shows a buy setup of a blind spot FL
Engulf. The price made a V1 MM soon after
making a clean breakout. The price then
retraced back to the swap level.
Upon return to the swap zone, the price went

northwards as predicted.

AUDUSD, H4
Trade Analysis
The SR responsible for the formulation of
the HB-FL has multiple resistance
touches. The flag limit is in the form of a
hidden base. The price engulfed the HB-
FL. As a result, a pivotal flag limit was
created. An MM kink was created along
the swap level.
The acceleration of price after creating

an MM kink was strong (V2 MM).
The price came back to the MM kink and

respected it on FTB. The stop loss would
have been placed above the MM.

BTCUSD, M5
Trade Analysis
The flag limit engulf price action was satisfied.
The acceleration of price was in the form of V1
MM.
A DJ was created along the swap level. The price

retraced to the DJ flag limit on FTB.

SILVER, D1
Trade Analysis
A deep engulf price action happened on the

pivotal flag limit. The price managed to make a
quick retest to the swap level. The swap level is
aligned with an HB candlestick pattern.
The acceleration of price after the formation of

the HB was very strong (V1 MM).
The price approached the HB zone in the form of

compression. The HB zone was respected on
FTB. The price managed to hit the conservative
target and went on to hit the second target. The
price bounced on TG for a while and continued its
journey southwards.

CADJPY, H1
Trade Analysis
The flashcard shows a blind spot setup. After the pin
engulf price action has been satisfied, the price
retraced back to the swap level and went upwards. The
momentum is classified as V1 MM (Good Sign).
The challenge with trading a blind spot setup is that

there is no exact determined place to put your stop
loss. It is advised to put the stop loss at a reasonable
place keeping the risk minimum.

AUDUSD, D1
Trade Analysis
The price managed to make a pivotal flag limit price
action. The price deeply engulfed the pivotal flag
limit. The price came back to the swap level after
engulfing the P-FL.
Upon arrival at the swap level, the price dropped
southwards as predicted. The first target would
have been at the apex of the D-ENG.

NAT.GAS, M15
Trade Analysis
The price managed to engulf the flag limit. The
acceleration is classified as V2 MM. The swap
level is aligned with a CBO. The price
managed to pay a visit to the decision point.
The swap level was respected by price on

FTB. Thereafter, the price dropped massively
to the downside.

AUDUSD, H4
Trade Analysis
After the engulf of the pivotal flag limit, the
price came back immediately to the swap
level. There was a CBO condition on the
swap level. This makes the setup to be
classified as a blind spot.
The price respected the blind spot setup and

dropped to extent of hitting the conservative
target. It is advised to always take partial
profits on TG1 so that when the trade goes
wrong you can either have a break-even
trade or a small profit.

AUDDKK, M30
Trade Analysis
There is a hidden base kink aligned with
the swap level. The momentum was neither
V1 MM nor V2 MM.
The price managed to come back to take
the orders that had been left on the swap
level. Upon return, the price had heavy
momentum. Although the approach to the
level of interest was not good. The price
managed to react at the HB kink and went
southwards. After the HB had successfully
managed to hold the price, another
attempt was made again to return back to
the HB zone but was unsuccessful.

EURHUF, D1
Trade Analysis
After the price had engulfed the pivotal
flag limit. The price went further down
before coming back to the P-FL. A
hidden base was formed along the
swap level.
The acceleration of price after the HB

was formed is classified as weak (Bad
Sign).
The price came back later to the swap
level. The swap level was respected on
FTB. The price then dropped until
hitting both TG1 and TG2.

EURUSD, M15
Trade Analysis
The engulf price action was satisfied

in this example. This led to the
validation of the pivotal flag limit.
An HB kink was formed along the
swap level. The acceleration can be
classified as V1 MM. The swap level
was respected multiple times. On the
third visit to the swap level, the price
dropped heavily to the extent of
hitting the final target.

AUDDKK, M5
Trade Analysis
The chart shows a V2 MM type of
acceleration. The engulf is
classified as deep. The price
managed to respect the swap
level and ended up failing to go
beyond that zone. The swap level
is aligned with a significant
support and resistance. This price
action made the swap level
strong.
The price managed to drop to the
point of hitting the conservative
target.

EURGBP, H4
Trade Analysis
pivotal flag limit with heavy
acceleration. The momentum started
to weaken as the price continued
going downwards. A CBO price action
was made along the swap level.
The price managed to visit the blind

spot zone and respected it upon arrival.
southwards as predicted.

EURJPY, H4
Trade Analysis
A deep engulf price action occurred on the pivotal
flag limit. The price was able to pay a visit to the
swap zone. There is a Marubozu candlestick
aligned with the swap zone level.
The swap trade is classified as a blind spot flag
limit engulf. The bullish engulfing candlestick that
was responsible for the formation of the swap level
would have been used to determine the stop loss
level.
The other alternative place to put your SL would

have been above the pivotal flag limit.

WTI, M5
Trade Analysis
The price deep engulfed the pivotal flag
limit and retraced back to an HB aligned
along the swap level.
The acceleration of price was weak (Bad

Sign).
Upon arrival at the swap level, the price
bounced and went upwards to the extent of
hitting TG1.

EURJPY, M30
Trade Analysis
The price deeply engulfed the flag
limit and retraced back to a DJ
aligned with the swap level.
The momentum of price was weak to

the downside.
The DJ decision point managed to

hold the price on FTB and dropped
thereafter until hitting the
conservative target.

EURJPY, H1
Trade Analysis
The price created a CBO price action along the swap

level. The setup is called a blind spot flag limit engulf.
The acceleration of price to the downside was heavy
(V1 MM). The price was able to make a quick retest to
the swap level.
Upon arrival to the CBO, the price dropped massively

to the downside. There was compression to the left
which made it easy for price to pass through without
much resistance.

EURJPY, D1
Trade Analysis
The acceleration of price soon after the

creation of a BE along the swap level is
considered weak. The flag limit that was
created along the swap level is a BE kink.
The price approached the kink in the form of
compression (Good Sign). Upon arrival to the
BE kink, the price dropped covering the
compressed zone. The price was able to
bounce on the conservative target area and
continued its southwards journey.

BTCUSD, H4
Trade Analysis
The chart shows an example of a blind spot flag
limit engulf. The price met the V1 MM standards.
The engulf price action is classified as deep
engulf.
The price managed to respect the swap level on

FTB. The QML was used as the target. The price
bypassed and made a retest to the QML target
then continued its journey southwards.

EURUSD, H4
Trade Analysis
The price managed to make deep engulf

price action. There was a Doji kink that
was created along the swap level.
The Doji kink was respected by price on

FTB. The price managed to make a U-turn
upon arrival. The price dropped heavily to
the downside.

GBPUSD, M30
Trade Analysis
The decision point is in the form of a
Bearish Engulfing candlestick pattern. The
BE is located along the swap level. The BE
is in the form of a kink.
The momentum is classified as very strong

(V1 MM).
There was a possibility that this trade might

have ended up being a loss since the price
did not retrace within the BE zone.
The price managed to drop after reaching

the BE zone to the extent of hitting the

GBPJPY, H4
Trade Analysis
The price made a deep engulf price
action. The swap level was in the form of
a two-touch support line. The trade can
be classified as a blind spot setup since
there was no kink formed along the swap
level.
The momentum of price was strong (V1

MM).
The price managed to make a pip
reaction at the swap level. The price
dropped massively and managed to go
past the conservative target.

GBPJPY, D1
Trade Analysis
The price managed to deeply engulf the
pivotal flag limit. There was a Mera-Mera
candlestick pattern that was formed during
the engulf of the pivotal flag limit.
The price approached the MM decision
point inside the P-FL in the form of
compression.
The price came back inside the pivotal flag
limit and respected the MM decision point.

GBPUSD, M30
Trade Analysis
The price pin engulfed the pivotal flag limit
which is in the form of a hidden base flag
limit. There was a hidden base decision
point located outside the pivotal flag limit.
The price went to the HB decision point.

Upon arrival, the price dropped to the extent
of hitting both TG1 and TG2.

GBPUSD, M5
Trade Analysis
There was an HB that was formed at the swap
level. The momentum of price is classified as V1
MM (Good Sign).
The HB managed to successfully hold the price

on FTB. The price dropped heavily from that
moment as anticipated.

EURUSD, H1
Trade Analysis
The flag limit was engulfed by price. During
the engulf price action an HB was created
along the swap level (Good Sign).
The momentum of price soon after the engulf

of the pivotal flag limit was very strong (V1
MM).
On the first visit, the price dropped as
anticipated. The price then made a second,
and third visit to the swap level and
dropped further down.

GBPCAD, M5
Trade Analysis
The flashcard shows a sell setup of the flag limit
engulf. There were two trading opportunities in
this chart. The first is on the swap level and the
second one is inside the pivotal flag limit.
A DJ kink was formed along the swap level. The
momentum of price after the DJ kink was created
is classified as very strong (V1 MM). As the price
retraced to the DJ kink, the zone was respected
by price and there was a decent movement of
price to the downside.
The price came back to a supply zone located
near the QML. The supply zone is in the form of
a BE decision point. The price managed to
respect the zone of interest and dropped heavily.

BRENT, H1
Trade Analysis
The price managed to engulf the pivotal
flag limit. The engulf was so deep and the
acceleration is classified as V1 MM.
The price came back to the pivotal flag limit

and respected the swap level. The swap
zone is associated with a CBO which
qualifies to be a blind spot setup.
The price dropped heavily upon arrival to

the extent of hitting TG. The TG is in the
form of a QML.

GBPCAD, M5
Trade Analysis
The price continued moving to
the downside after the flag limit
engulf price action has been
satisfied. The breakout was
clean along the swap level. In
this regard, the setup is
classified as a blind spot swap
level.
The acceleration of price to the

downside was heavy with some
small pauses along the way.
The price finally decided to go
and collect orders that had been
left at the swap level. The price
respected the zone to the pip
and dropped to the point of
hitting TG1.

Supply and Demand FL Engulf
Chapter 2

SnD FL Engulf
Sell Setup
The SnD zone is the last set of orders in any given

setup. The price can ignore the Swap Level, and the
QML then goes straight to the SnD zone.
In some cases, the SnD zone might be located within

the pivotal flag limit especially when the P-FL is wide.
The SnD zone might be in the form of a DJ, MM, HB,

or BE.

SnD FL Engulf
Sell Setup
The price can either make a pin or deep engulf. The
price then retraces back to the last set of orders at the
RBD level.
In most cases, if the pivotal flag limit is narrow, then

there are high chances of price returning to the RBD
supply since the Quasimodo Level will not be justifiable.

SnD FL Engulf
Buy Setup
The anatomy shows an SnD that is far away from the
pivotal flag limit. In such cases, there is a possibility
that the price can bounce at the QML. Hence, partial
profits may be taken at QML if the pivotal flag limit is
far away from the DBR demand which is the last set of
orders.
The conservative target should be at the apex of the

ENG.

SnD FL Engulf
Buy Setup
The anatomy shows a Buy version of the extreme SnD.
The ideal place to put the stop loss is at the apex of the
ENG. The SnD zone can be in the form of a DJ,BE,
MM, or HB.

SnD Inside FL Engulf
Sell Setup
The anatomy shows an example of an SnD located
inside the wide pivotal flag limit. The decision point is
usually in the form of a continuous pattern. Usually, the
pattern will be a DBD supply.

SnD Inside FL Engulf
Sell Setup
The anatomy shows an example of an SnD located
inside the pivotal flag limit. The decision point is usually
in the form of an RBR demand if it is a Buy setup.

AUDDKK, D1
Trade Analysis
The price made a deep engulf
price action. The momentum
to the downside during the
deep engulf was very strong
(V1 MM). In this regard,
since the V1 MM condition
was met, there was a
possibility to place a trade
along the swap level. The
swap level was perfectly
aligned with a BE kink.
Nevertheless, the price failed

to make a decent reaction on
the swap level. The price
ignored the QML as well and
went straight to the SnD zone.
The price managed to
respect the SnD Zone and
went southwards in a
compressing manner.

AUDDKK, M5
Trade Analysis
After the price had engulfed the
pivotal flag limit. The price
retraced to a decision point that is
in the form of a DBD supply. The
decision point is a bearish
engulfing candlestick pattern.
The price managed to drop
massively to the downside until
hitting the conservative target.
Thereafter, the price came back
again to the zone of interest for
the second time and reacted
again for a while before coming
for the third visit. On the third visit,
the price engulfed the zone of
interest and dropped. The price
continued making multiple visits
until the price covered the
compression that had manifested
as a result of multiple visits to the
DP.
AUDDKK, D1
Trade Analysis
The price managed to
make a pivotal flag limit
price action. The price
deeply engulfed the pivotal
flag limit. Inside the pivotal
FL, there is an inside DBD
that manifested itself in the
form of a bearish engulfing
flag limit.
The price approached the

BE-FL in the form of
compression. Upon arrival
at the decision point, the
price respected the zone
and dropped. However,
the price made multiple
visits to the DP and finally
dropped southwards.

AUDDKK, H4
Trade Analysis
The chart shows a pin engulf price
action. Soon after pin engulf, the
price retraced to an RBR (demand
zone). The demand zone was
respected by price and went to the
Pin Engulf zone.
The stop loss would have been
placed below the demand zone. The
first conservative target should be at
P-ENG.

AUDDKK, H4
Trade Analysis
The price managed to make a D-ENG price
action. The acceleration of price during the
deep engulf was very strong (V1 MM). Along
the swap level, there was a CBO condition
which gives us a reason to place a trade on
the swap level. The price reacted on the
swap level for a short time and further went
upwards until reaching the RBD DJ supply.
The price managed to respect the decision

point and went southwards to the point of
hitting TG. The TG was chosen because it
is a QML left shoulder.

AUDPLN, M5
Trade Analysis
and retraced back to a supply decision
point inside the P-FL. The DBD – DP is
actually a flag limit. Upon arrival, the price
respected the zone of interest and dropped
to the extent of hitting the target.
After the target has been hit, the price came

back again to the DJ for the second time
and respected it. The price dropped
thereafter going southwards.
The SL would have been placed above the

DJ zone.

AUDPLN, H1
Trade Analysis
The pivotal flag limit is in the form of an HB-FL. These
types of flag limits might be difficult to identify to the
untrained eye.
Soon after the engulf price action has occurred the

price retraced back to the SnD zone and respected it.
The supply zone (RBD) is in the form of a DJ.
The price managed to drop to the extent of hitting both

TG1 and TG2.

AUDDKK, H1
Trade Analysis
In a scenario where the pivotal flag limit is
wide. There is a possibility of finding a
decision point inside the wide flag limit. In this
flashcard, the is a Doji decision point inside
the P-FL. As the price visited the DJ for the
first time. The price was held by the DP and
dropped to the extent of hitting the
conservative target which is the apex of the
D-ENG price action.
The stop loss would have been placed above

the DJ zone to keep the risk management
tight.

BRENT, H1
Trade Analysis
The price attempted to make a quick retest to the
swap level but failed. The momentum of price then
started to weaken from that moment. There were
three possible potential places to take trades, either
at the HB inside the pivotal flag limit, QML, or SnD
zone. The price managed to react within the pivotal
flag limit and dropped to the extent of hitting TG.
The stop loss would have been placed above the

QML. In the event that the SL was put just above
the HB inside the pivotal flag limit then there is a
possibility that this trade would have been a failed
trade.

GBPCAD, M5
Trade Analysis
The engulf price action is the main pillar of

this setup. If there is no engulf of a flag limit
then the setup is considered invalid.
After the deep engulf price action has

occurred, the price came to a decision point
inside the pivotal flag limit. The decision point
is in the form of a Bearish Engulfing
candlestick.
The price managed to respect the BE

decision point and went on to hit the

GBPCAD, D1
Trade Analysis
This flashcard shows a flag limit

decision point inside the pivotal flag
limit. The flag limit decision point is
associated with a Bearish Engulfing
candlestick pattern.
As soon as the engulf price action

was completed. The price went to
the BE decision point inside the
pivotal flag limit and reversed upon
arrival.
The price dropped heavily to the

extent of going past the

EURHUF, H1
Trade Analysis
The price made an engulf price action.

The price managed to return back to the
pivotal flag limit which was wide. Upon
arrival, the price respected an HB supply
inside the pivotal flag limit. The HB is also
aligned with a Left Shoulder (Good Sign).
The price approached the HB-DP in a

compression manner (Good Sign).
The TG is in the form of a QML. The price

managed to hit the conservative target.

GBPCAD, M30
Trade Analysis
The chart shows an example of a flag limit
engulf in relation to a supply decision point.
A pin engulf price action was made. The
price retraced immediately to the supply
zone that had a DJ candlestick characteristic.
The Doji supply managed to hold the price

on the first visit. The price then dropped and
went on to hit the P-ENG target.
Consequently, the price tried to go back to
the entry-level but failed.
The price then dropped heavily to the

downside in a short space of time.

CADJPY, H4
Trade Analysis
The price made the first visit to a BE supply inside
the pivotal flag limit. The price pin engulfed the
flag limit and retraced back immediately. The price
respected the BE and went on to hit TG.
Thereafter, the price made a second visit and a
third visit to the BE supply and still respected it.
The price then went southwards as anticipated.
The stop loss could have been placed above the

BE zone.

GBPCAD, M15
Trade Analysis
A pin engulf price action occurred in this chart
example. The price retraced back to the MM
decision point.
The MM DP managed to hold the price on an

FTB basis. The price dropped thereafter and
managed to reach the target. At that moment the
price made a retracement before going further
down. The second target was successfully hit by
price.

GBPCAD, H1
Trade Analysis
In most cases, if the price makes a wide flag limit then

there is a possibility to find a significant decision point
inside the pivotal flag limit that is more likely to hold the
price.
In this example, there was a hidden base DP inside the
pivotal flag limit. After the deep engulf price action has
been made, the price retraced to the HB inside the P-FL
and bounced on FTB.
The price managed to drop until hitting the conservative

target.

NAT.GAS, D1
Trade Analysis
The SR that was responsible for the creation of

the flag limit is a two-touch resistance. The price
made a pin engulf to the pivotal flag limit and
retraced inside the P-FL. There is a BE decision
point inside the pivotal flag limit.
On arrival for the first time, the price made a U-

turn and managed to hit the conservative
target. Thereafter, the price continued its
journey further down.

EURGBP, H1
Trade Analysis
The pivotal flag limit was created after an engulf
confirmation. The engulf is classified as pin-engulf.
As soon as the price engulfed the P-FL, the price
made a quick retest to a hidden base outside the
pivotal flag limit. The DBD was respected by price
on FTB.
The price managed to respect the HB decision point
and went southwards to the point of hitting the
conservative TG. There is a compressed zone
below the engulf section. This made it is easier for
the price to pass through the compressed zone
without facing any form of resistance.

AUDUSD, M15
Trade Analysis
There is a narrow flag limit in this example.
The narrow flag limit was engulfed by price.
This led to the creation of a pivotal flag limit.
The supply zone is in the form of a bearish

engulfing candlestick pattern.
The price failed to make any reaction along

the swap level. The price went to the last set
of orders in this setup. Before the engulf of
the flag limit. The price attempted to come
back to the SnD zone but failed. This led to
the creation of an FTR which is considered
as a price approach. The FTR is usually a
fake supply or demand put in place to entice
trades to get in so that they can take their
stop losses.

WTI, H4
Trade Analysis
The price made a deep engulf before retracing
back to the SnD zone. The QML had been
consumed this is the reason why the price
managed to go past the QML area without
making any reaction.
The RBD supply zone is in the form of a Doji.

The price managed to respect the decision
point of interest and went southwards.
The stop loss might have been placed above

the DJ.

Japan 225, M5
Trade Analysis

pivotal flag limit with strong
acceleration (V2 MM). A kink was
created along the swap level. The
price made a reaction on the swap
level but it was insignificant. The price
went to a BE decision point just above
the QML.
The approach to the BE supply was in

the form of compression (Good Sign).
The price managed to visit the BE

supply and respected it upon arrival.
southwards as anticipated.

GBPCAD, M5
Trade Analysis
The flashcard shows a sell setup of a flag limit
decision point found inside the pivotal flag limit.
A pin engulf price action was made. The price
retraced back for the first time to the zone of
interest.
The flag limit DP is in the form of a Doji. Upon
arrival for the first time, the price dropped to
the point of hitting the conservative target.
Thereafter, the price visited the zone of
interest again. The DJ managed to hold the
price again. It is advised to always place
trades on FTB.

Japan 225, M5
Trade Analysis
Bearish Engulfing candlestick pattern. The
BE is located within the pivotal flag limit
since the zone is wide.
There was a possibility that the price might

have reacted on the swap level but it failed
to make any reaction. The swap level was
perfectly aligned with an HB kink.
After the swap level has been ignored the

price went to a BE-DP inside the pivotal
flag limit and dropped southwards.

EURGBP, M5
Trade Analysis
The chart shows a sell setup of a CCC-
QML. The QML is aligned with an SSR.
Along the SSR there is a BE candlestick
pattern. The engulf is classified as a
deep engulf.
The price reversed upon arrival at the

decision point.
The first target was determined by
selecting a fresh demand zone. The
second target was determined by
selecting a QML.

EURJPY, D1
Trade Analysis
After the price had engulfed the pivotal flag limit.
The price retraced to a hidden base decision point
inside the pivotal flag limit.
The price approached the HB decision point by
compression (Good Sign).
The price respected the HB on FTB. The price
decided to come back to the zone of interest
again before dropping southwards.

BTCUSD, M30
Trade Analysis
The price retraced to the DJ zone inside the
pivotal flag limit.
The decision point managed to respect the
DJ demand zone on FTB. The price
ascended to the extent of hitting the
conservative TG.

EURJPY, M5
Trade Analysis
and retraced back to a supply decision point
at the SnD zone. The RBD supply zone is in
the form of a BE candlestick pattern (Good
Sign).
QML left shoulder was used as a target. The

price reacted on the target before going
further down.

USDZAR, D1
Trade Analysis
The flashcard shows a sell setup flag limit
engulf example. After satisfying the engulf
price action, the price retraced to a BE DP
outside the pivotal flag limit.
Upon arrival at the BE DP for the first time,

the price dropped to the point of hitting the
conservative target. Thereafter, the price
bounced on the TG area and further went
southwards.

EURJPY, H4
Trade Analysis
The pivotal flag limit is in the form of a DJ supply.
The DJ supply is located inside the pivotal flag
limit.
The acceleration of price was very strong (V1 MM).

The engulf is classified as deep engulf.
Soon after the engulf price action had been
completed the price retraced back to a Doji supply
zone and dropped to the point of hitting the
conservative target. Thereafter, the price retrace
to the swap level and went southwards.

UK100, H1
Trade Analysis
The price engulfed the pivotal flag limit
and retraced to the SnD zone. There is
no special candlestick pattern associated
with the supply zone.
The supply managed to successfully hold
the price on FTB. The price dropped
heavily to the downside to the extent of
reaching the conservative target. The
price bounced for a little while at the
target and continued its journey
southwards.

GBPJPY, M15
Trade Analysis
The price managed to react at the swap level.
The acceleration is classified as V1 MM. The
price made a quick retest to the swap level
and it dropped southwards.
After hitting the swap level TG. The price
came back inside the pivotal flag limit. The
price was able to make a U-turn on a BE
decision point. The price dropped heavily to
the downside.

EURUSD, H1
Trade Analysis
The chart example shows a sell setup of
the flag limit engulf price action. The
engulf to the pivotal flag limit was deep.
After a while, the price came back to an

RBD supply. The supply zone is in the
form of a Bearish Engulfing candlestick
pattern (Good Sign).
The price made a U-turn when it arrived at
the SnD zone. The price dropped heavily
to the extent of going past the

EURUSD, H1
Trade Analysis
The chart shows an example of a flag limit

engulf in relation to an HB decision point.
The price retraced immediately to the HB
inside the pivotal flag limit.
The HB supply managed to hold the price on

the first visit. The price then dropped and
went on to hit the target. Subsequently, the
price managed to go beyond the ENG area.

BTCUSD, M5
Trade Analysis
The price managed to pin engulf
the pivotal flag limit. The pivotal
flag limit is generally classified
as wide. If the P-FL is wide then
there is a higher chance that the
price will retrace within the P-FL.
Inside the P-FL, there is DJ

decision point. Upon arrival to
the DJ DP, the price dropped
heavily. Upon hitting the
conservative target, the price
retraced back to the swap level
and continued its journey
southwards.

UK100, M15
Trade Analysis
The chart shows an example of a
deep engulf price action. After the
price had made a deep-engulf price
action, the price retraced to the
Quasimodo Level perfectly aligned
with a DJ candlestick pattern.
The price was able to reverse at the

time it reached the DJ decision point.
As predicted the price dropped and
managed to hit both TG1 and TG2.

EURUSD, M15
Trade Analysis
The chart example shows a setup with a pin
engulf price action. Soon after the engulf of the
flag limit, the price retraced to a BE decision
point outside the pivotal flag limit.
The price compressed its way to a Bearish

Engulfing candlestick pattern (Good Sign).
The price managed to respect the BE decision

point and dropped to the point of hitting the

EURUSD, M15
Trade Analysis
The chart example shows a sell setup of an engulf
flag limit. The price made a pin engulf price action
and went to an MM just above the pivotal flag limit.
The price managed to reverse upon arrival to the

MM decision point. The price ended up hitting the
target.

EURUSD, H4
Trade Analysis
This flashcard shows a decision

point outside the pivotal flag limit.
DJ.
As soon as the engulf price action
was completed. The price retraced
to the DJ decision point outside the
pivotal flag limit and reversed upon
arrival to extent of hitting TG1 and
TG2. TG1 is at the apex of the
engulf price action whereas TG2 is a
QML.

EURUSD, M15
Trade Analysis
This chart shows a deep engulf price
action. There is a BE decision point
below the pivotal flag limit.
The price made a U-turn upon arrival at

the BE decision point. The price
ascended to the extent of hitting the

EURUSD, H1
Trade Analysis
In most cases, if the price makes a wide
flag limit the price retraces to a decision
point inside the pivotal flag limit. In this case,
the price retraced to the SnD zone. The
supply zone is in the form of a BE decision
point.
After the pin engulf price action has been
made, the price retraced to a BE supply and
made a U-turn.

USDZAR, M30
Trade Analysis
The engulf price action was satisfied
in this example. There was a BE
supply above the pivotal flag limit.
The price approached the BE DP in

the form of compression (Good Sign).
The price respected the zone of

interest on its first visit. The price
dropped massively covering the
compressed area.

EURUSD, H1
Trade Analysis
The price managed to satisfy the flag
limit engulf price action. The
momentum of price soon after the
engulf of the flag limit was very strong
(Good Sign). A blind spot setup was
formulated along the swap level.
Upon arrival at the CBO, the price
dropped as anticipated.
Thereafter, the price then made a

decision to come back to a Mera-Mera
decision point located inside the
pivotal flag limit. The decision point
was respected on FTB and the price
dropped heavily to the extent of hitting
a QML which was selected to be TG1.
Upon arrival at the target, the price
reacted to the pip and managed to go
past the TG after a decent
retracement.

CADJPY, M5
Trade Analysis
The flag limit is wide. After the pin
engulf price action the price managed
to respect a BE decision point inside
the pivotal flag limit.
The approach of price to the BE DP

was good. The price approached the
BE in a compression manner. This
made it easier for price to cover the
compressed zone without any difficult.

GBPUSD, M15
Trade Analysis
The price pin engulfed the pivotal
flag limit and retraced to the SnD
zone. The supply zone is in the
form of a Bearish Engulfing
candlestick pattern (Good Sign).
The RBD supply managed to

successfully hold the price on FTB.
The price dropped heavily to the
downside to the extent of reaching
the conservative target.

GBPUSD, M15
Trade Analysis
The chart shows an example of a deep engulf
price action. After the price had made a deep-
engulf price action, the price retraced to the
Quasimodo Level perfectly aligned with a DJ
The price managed to make a U-turn upon
arrival at the DJ zone. The price managed to
reach the TG1 destination and went further
down breaking significant lows.

GBPUSD, M30
Trade Analysis
The price made an engulf price action.
There was a hidden base located outside
the pivotal flag limit. The DJ is in the form
of a flag limit.
Upon arrival to the hidden base, the price
dropped heavily to the extent of reaching
the apex of ENG. The price managed to hit
the second target as well which was in the
form of a QML.

GBPUSD, H1
Trade Analysis
The flag limit was considered a pivotal
flag limit after a pin engulf price action
has taken place. The price managed to
retrace to the SnD zone. The RBD is in
the form of a DJ.
The price respected the DJ zone on the
first visit. The price dropped from that
moment but failed to reach the P-ENG
area. The price then made a second visit
to the DJ zone and dropped heavily to
the point of hitting both TG1 and TG2.

GBPUSD, H1
Trade Analysis
The price made a pin engulf price action.

The price managed to return back to the
supply zone. Upon arrival, the price
respected the BE supply outside the
pivotal flag limit.
Upon arrival, the price dropped

massively to the extent of breaking all
significant lows.

AUDPLN, H1
Trade Analysis
A pin engulf price action happened on
the pivotal flag limit. The price managed
to make a quick retest to a supply zone
(DBD) inside the P-FL. The supply zone
is in the form of a BE.
After the pin engulf price action had

been made, the price created a deep
engulf price action. So there are two
trades that might have been capitalized
on in this trade.
The second trade might have been

risky since the BE zone had been
consumed already.

GBPUSD, H4
Trade Analysis
and retraced back to a DJ supply zone.
The DJ managed to hold the price on FTB.

The price then dropped to the extent of
hitting both TG1 and TG2. A QML was used
to draw the TG2 level.

GBPUSD, H4
Trade Analysis
The SR responsible for the formation of the
flag limit is an ignored QML. The decision
point is in the form of a Doji Supply. As the
price made an engulf price action, the price
retraced to the DJ supply.
The price dropped thereafter and managed

to hit the conservative target which is the
apex of ENG. After the conservative target
has been hit, the price retraced a little bit
and continued its journey southwards.

GBPUSD, H4
Trade Analysis
The chart shows a sell setup with a BE

decision point. The BE is located outside
the pivotal flag limit. The engulf is
classified as deep.
The price retraced back to the BE zone.
Upon arrival, the price travelled to the
extent of reaching the D-ENG
destination.

GBPUSD, D1
Trade Analysis
The pivotal flag limit was created after an engulf
confirmation. The engulf is classified as pin-engulf.
As soon as the price engulfed the P-FL, the price
made a quick retest to a Bearish Engulfing candle
The price managed to respect the BE decision point.

Subsequently, the price went southwards to the
point of hitting the conservative target.
The stop loss could have been placed above the BE

decision point.

GBPUSD, H1
Trade Analysis

action. The price managed to return back
to a Doji supply zone.
The price approached the DJ in the

form of compression.
The price managed to respect the DJ
supply and went towards TG1.

GBPUSD, H4
Trade Analysis
before retracing back to the SnD
zone. The supply zone is in the
form of a DJ (Good Sign).
The supply zone was able to hold
the price successfully on a first-
time back basis. The price
dropped thereafter until hitting the
target.

USDZAR, M15
Trade Analysis
The price made a pin engulf price action. The
price immediately retraced to the SnD zone.
The SnD zone is in the form of a BE
candlestick pattern (Good Sign).
As the price arrived at the BE zone, the price

dropped but failed to hit the conservative
target. The price then made a decision to
revisit the BE zone again. Upon arrival, the
price dropped in the southern direction.

USDZAR, M5
Trade Analysis
level. There was a CBO condition on the
swap level. This makes the setup classified
as a blind spot.
The price respected the blind spot setup

and dropped to extent of hitting the
conservative target. It is advised to always
take partial profits on TG1 so that when the
trade goes wrong you can either have a
break-even trade or a small profit.

GBPUSD, M30
Trade Analysis
back to the apex level of the setup. There was a
hidden base DP above the pivotal flag limit.
The DBD supply zone was respected by price

on FTB. The price made a U-turn upon arrival
and dropped to the extent of hitting the target.
There was a trade opportunity that might have

been taken along the swap level.

USDZAR, M5
Trade Analysis
The price made a pin engulf price
action. There was a DJ at the SnD
zone. The price made multiple visits to
the demand zone before going further
northwards.
The decision point was strong because

the price came several times and failed
to go beyond the zone of interest. The
price managed to travel to the extent of
reaching the P-ENG destination. The
price continued its journey and came for
a retest to the conservative target and
went further up.

USDZAR, M15
Trade Analysis
The flag limit engulf price
action was satisfied. The
engulf is known as pin engulf.
The price retraced to a supply
zone outside the pivotal flag
limit. The supply zone is not in
the form of any special
Upon arrival to the supply

zone, the price dropped to the
extent of hitting the P-ENG
area.

USDZAR, M15
Trade Analysis
The chart example shows a setup with a pin
engulf price action. Soon after the flat limit was
engulfed the price retraced to the SnD zone.
The supply zone is in the form of a DJ.
The price managed to descend as soon as it

reached the decision point. The price dropped
to the extent of going beyond the P-ENG. After
hitting the P-ENG, the price came for a retest
to the TG and went further down.

USDZAR, M15
Trade Analysis
The price managed to make a pivotal flag
limit price action. The price pin engulfed
the P-FL. The price retraced to a Bearish
Engulfing candlestick located outside the
pivotal flag limit.
Upon arrival at the BE decision point, the

price dropped southwards and managed to
arrive at the first destination which is TG1.

GBPUSD, D1
Trade Analysis

The price was able to retrace back the SnD zone.
The SnD zone is in the form of a BE (Good Sign).
As the price came back to the BE DP for the first

time, the price reversed as predicted.
The stop loss could have been placed below the

BE zone.

USDZAR, M30
Trade Analysis
The chart shows a pin engulf example. Soon

after the pin engulf price action, the price
compressed to the SnD zone.
The price managed to respect the demand

zone on FTB. The price went to hit the
conservative target at the apex of the ENG
area. The price was able to respect the zone
and went northwards as anticipated.

USDZAR, M30
Trade Analysis
The chart example shows a sell setup of the FL
Engulf. The price made a pin engulf price action
and went to a Doji supply. The DJ is located
Upon arrival to the DJ zone, the price managed to
reverse to the point of arriving at the pin engulf
area. The price ended up hitting the target. After
that, the price made a quick retest to the ENG
area and went further down.

USDZAR, M15
Trade Analysis
price action. Thereafter, the price
came back to a hidden base kink
located at the apex of the pivotal
flag limit.
The price approached the zone of
interest by compression (Good
Sign).
The price respected the zone of
interest and went northwards.
TG1 would have been placed at
the apex of D-ENG.

USDZAR, M30
Trade Analysis
The chart shows an example of a pin engulf

price action in relation to a BE supply zone.
The price made two visits to the BE zone.
The price managed to respect the zone of
interest on FTB. The price dropped to the extent
of reaching the pivotal flag limit and bounced
inside. This led to the second visit of price to the
BE zone. At that moment the price then
dropped to the extent of breaking all the
significant lows.

EURGBP, H1
Trade Analysis
The flashcard shows a flag
limit engulf setup. Soon after
the engulf price action, the
price compressed its way to
an HB located outside the
pivotal flag limit. The HB is
classified as a flag limit (Good
Sign).
The price dropped massively
upon arrival at the HB zone.
The reason why the price
dropped with heavy
momentum is because of the
compression that had
occurred.

BRENT, H1
Trade Analysis
The trade engulfed the pivotal flag limit. The flag limit is
classified as huge. Inside the P-FL, there is a hidden
base kink aligned with a left shoulder.
The price managed to respect the HB-Kink and went

northwards.
The SL would have been placed below the HB-Kink.
Remember to always trade with a stop loss. The
strategy is not 100% effective. You will win and lose
some trades hence you need to keep your risk
management tight.

USDZAR, D1
Trade Analysis
The engulf of a flag limit is the main condition
to look for in every situation. The setup is
considered invalid if the engulf price action is
not satisfied. In this example, the price
managed to engulf the pivotal flag limit and
retraced to a DJ decision point located
There was an SSR aligned with the DJ. This

made the decision point strong (Good Sign).
Upon arrival for the first time, the price
respected the DP and went southwards.

QML FL Engulf
Chapter 3

QML FL Pin Engulf
Sell Setup
The QML is the first potential level to target for entries
in the event that the price makes a pin engulf price
action. The pivotal flag limit must be valid.

QML FL Pin Engulf
Sell Setup
The first potential place to take a trade is at the swap
level. However, if the price makes a pin engulf price
action then the swap level ceases to be a potential
trading opportunity. Sequentially, the next potential
place to take a trade is at the QML. This is called a
quick retest to the Quasimodo Level.

QML FL Deep Engulf
Sell Setup
The pivotal flag limit condition must always be satisfied.
After the price had made a D-ENG price action the
price is expected to visit the QML area. The QML is
usually associated with a WBS, DJ, HB, MM, or BE. In
the event that the QML is associated with a valid
candlestick pattern. The stop loss can be placed above
the candlestick pattern.

QML FL Deep Engulf
Sell Setup
In most cases, a QML is associated with a DJ, MM, BE,
HB, or WBS. This gives strength to the QML. If the
distance between the QML and the Head of the QM
setup is wide, it is advised to put the stop loss below
the candlestick pattern. On the other hand, if the
distance is narrow between the QML and the Head
then the stop loss can be placed below the Head of the
QM setup.

AUDDKK, D1
Trade Analysis
The price made a deep
engulf price action.
Thereafter, the price came
back to the Quasimodo
Level and respected it.
There was also a Doji
candlestick pattern on the
head of the QML.
TG1 was selected

because there was a
resistance line with
multiple touches. There
was a high possibility that
the price would bounce
on that level. TG2 was
selected since it is a QML
Left Shoulder.

AUDDKK, H1
Trade Analysis
The flag limit was engulfed by price. This
is the main condition that has to be met
all the time. Thereafter, the price retraced
back the QML. The QML is aligned with
a hidden base.
As the price came back to the QML for

the first time, price reacted and dropped
as anticipated to the extent of hitting the

AUDDKK, D1
Trade Analysis
The pivotal flag limit was created.
As soon as the price engulfed the
P-FL, the price made a quick retest
to the swap level and dropped
thereafter. This implies that a trade
opportunity might have been
capitalized on the swap level.
After the deep engulf, the price
came back to the QML and
respected it on FTB. The QML was
associated with a DJ which might
have made the DP strong. The
stop loss would have been placed
above the DJ.
The flag limit was used as TG1
whereas the QML left shoulder was
used as TG2.

AUDDKK, H4
Trade Analysis
level and reacted for a while before
continuing to the downside.
The price came back to the Quasimodo Level

which was aligned with a DJ. Upon return,
the price bounced and went upwards as
anticipated.
The stop loss would have been placed below

the Doji candlestick pattern.

NAT.GAS, H4
Trade Analysis
The flag limit was pin engulfed by price. Soon
after the pin engulf price action, the price retraced
back to the QML. The price failed to retrace on
the QML. It retraced within the pivotal flag limit.
There is a possibility that the trade might have
been missed.
The QML is aligned with a bearish engulfing
candle. Upon arrival to the QML area, the price
dropped to the extent of hitting TG1 and TG2.

AUDUSD, D1
Trade Analysis
The price made a pin engulf price action. The
price immediately retraced to the QML inside
the pivotal flag limit. The QML is aligned with
a DJ candlestick pattern (Good Sign).
The price approached the decision point in a

compression manner.
Upon arrival, the price bounced with heavy

acceleration covering the compressed area.
The price managed to hit the conservative
target.

CADJPY, M30
Trade Analysis
The price managed to react on the

left shoulder.
The price compressed itself towards

the QML. However, the price did not
reach the QML. In this regard, there
is a possibility that this trade might
have been missed.
A left shoulder was used as a
potential target. The price managed
to go past the TG after making a
small reaction.

BRENT, H1
Trade Analysis
The chart shows an example of a pin engulf
price action. After the price had made a pin-
engulf price action, the price retraced to the
Quasimodo Level.
The QML is aligned with a DJ candlestick

pattern. Upon arrival to the DJ-QML, the price
returned back from where it had come from.
As predicted the price came and hit the

conservative TG. Subsequently, the price
made a second visit to the QML and dropped
massively to the extent of hitting TG2.

CADJPY, M30
Trade Analysis
The price managed to make an engulf
price action. The price retraced to an
RBR decision point inside the pivotal flag
limit. The BE is also classified as a flag
limit since it is aligned with a QML.
The decision point was respected by the

price on FTB. The price managed to
ascend to the point of hitting the target.

AUDDKK, H4
Trade Analysis
The price made a pivotal flag limit. After the

completion of the engulf price action, the
price retraced back to the QML which was
associated with a BE candlestick pattern.
The target profit is generally placed at the

apex level of the engulf. Soon after arrival at
the decision point the price dropped and
bounced on the swap zone. The price made
a second visit to the decision point and
dropped thereafter.

AUDDKK, M30
Trade Analysis
The price made a deep engulf to the pivotal

flag limit. The price decided to retrace back
to the QML that was aligned with a WBS.
As anticipated the price respected the DP

and went towards the target.

AUDPLN, M5
Trade Analysis
The decision point is in the form of a CCC-QML. As
the price made a pin engulf price action, the price
retraced to the CCC-QML. The decision point
managed to hold the price on FTB. The price
dropped thereafter and managed to hit the
conservative target which is the apex of the Pin-Eng.
After the conservative target has been hit, the price

made multiple visits to the zone of interest before
going further southwards.

AUDPLN, H1
Trade Analysis
back to the QML. The QML is aligned with a
Mera-Mera decision point (Good Sign). The
decision point managed to hold the price
successfully. The price dropped thereafter until
hitting the target.
The stop loss might have been placed above
the Mera-Mera. The TG was used as a target
because it is a valid QML left shoulder that has
the potential to bounce price.

AUDPLN, M15
Trade Analysis
The price pin engulfed the
pivotal flag limit and retraced
back to a DJ aligned with a
QML.
The DJ decision point

managed to hold the price
on FTB and dropped
The stop loss might have

been placed above the Doji
zone.

GBPCAD, M15
Trade Analysis
The decision point in this chart example is in the
form of a CCC-QML. The CCC-QML is aligned
with a hidden base kink (Good Sign).
The price managed to retrace back to the CCC-
QML and reacted to the pip. The price then went
in the anticipated direction within a short space of
time. The price managed to hit the conservative
target.

GBPCAD, H4
Trade Analysis
The flag limit was engulfed by price. As soon as
this price action occurs then we can start to look
for possible decision points to trade from. If the
pending orders would have been placed along
the QML then this trade might have ended up
being a missed trade. The price managed to react
on the left shoulder that was used to create the
flag limit.
The price was able to react to the pip on the SR

left shoulder. The price ascended from that
moment to the extent of hitting both TG1 and
TG2.

BRENT, H1
Trade Analysis
action. There is a BE aligned with the
QML. The trade might have been placed
on FTB to the BE zone. The other
alternative would have been to wait for
the price to come back to the QML.
The price managed to make a pip

reaction at the QML. The price dropped
massively and managed to hit TG.
The stop loss would have been placed

above the BE zone.

BRENT, H4
Trade Analysis
After the price had engulfed the pivotal
flag limit. The price made a quick
retest to the swap level and went
southwards.
The price came back later to the

Quasimodo Level. The QML was
respected to the pip. The price then
dropped until hitting TG1. The price
even managed to go beyond TG1.
The approach of price to the QML was

in the form of compression (Good Sign).

BRENT, H1
Trade Analysis
action. The price managed to return back
to the pivotal flag limit after a while. Upon
arrival, the price respected a BE supply
inside the pivotal flag limit. The BE is also
aligned with a Quasimodo Level which
adds extra confluence.
The stop loss would have been placed

above the pivotal box. The price managed
to respect the QML to the pip.
The price successfully arrived at TG. The

TG is in the form of a left shoulder. The
price reacted on the TG for while and
continued to go beyond the TG level.

CADJPY, M30
Trade Analysis
The D-ENG price action is classified
as MM V2. Upon arrival at the swap
level, the price reacted just for a
little while. Thereafter, the price
went to the QML inside the pivotal
flag limit.
The stop loss would have been
placed above the QML inside the
flag limit.
A left shoulder was used as a target.
Upon arrival to the TG, the price
reacted which shows the
importance of these left shoulders.

BRENT, H1
Trade Analysis
The flashcard shows two possible selling
opportunities that might have been capitalized. The
first one is along the swap level whereas the
second is along the QML.
There is a hidden base that was created along the

swap level. The hidden base is classified as a flag
limit. The acceleration of price is categorized as V1
MM.
The price managed to make a quick retest to the

HB zone. The HB managed to successfully hold
the price on FTB. The price dropped creating D-
ENG. After the creation of D-ENG, the price
decided to retrace to the QML.
The QML is associated with Mera-Mera candlestick

pattern. This adds extra strength to the decision
point (Good Sign). The price managed to make a
U-turn after arriving at the decision point.

BRENT, M5
Trade Analysis
The QML is aligned with a hidden base kink.
The engulf was too deep. Nevertheless, the
price managed to come back to the pivotal
flag limit after a while.
The first target is in the form of a flag limit.

Flag limits are also significant zones that can
be used as potential profit targets. The
second target was determined by a left
shoulder.

GBPCAD, D1
Trade Analysis
There were two trading opportunities that might
have been capitalized on this flashcard. ENG1
price action was made and the price managed to
make a quick retest to the QML. Thereafter, the
price went up and made a second engulf price
action.
As soon as the price made ENG2 price action, the

price retraced to an FL DP and went northwards.

GBPCAD, H4
Trade Analysis
The price managed to satisfy the price action
required which is the engulfment of a flag limit. The
moment the price action is satisfied then the FL
becomes a pivotal FL. A flag limit is promoted to
become pivotal if the engulf price action has been
satisfied.
The QML was perfectly aligned with an HB kink.
The price managed to make a retest to the HB
kink and went southwards.
There was compression just below the D-ENG.

The presents of compression made it easy for the
price to continue moving down after the
conservative TG has been hit.

GBPCAD, M30
Trade Analysis
The chart example shows a buy setup of the QML
FL Engulf. The price made a pin engulf price
action and went to the QML. The QML is perfectly
aligned with a hidden base which also looks like a
bearish candlestick pattern.
Upon arrival, the price managed to reverse to the
point of dropping to the extent of arriving at the
pin engulf area. The price ended up hitting the
target. After that, the price made a retracement
again and went past the conservative target to the
point of reaching the second target which was
determined by a QML left shoulder. The price
reacted on a left shoulder that is TG2. Thereafter,
the price continued its journey downwards.

GBPCAD, M15
Trade Analysis
The chart example shows a setup that had a
pin engulf price action. Soon after the flat limit
engulf, the price retrace to a QML. There was
a possibility that this trade might have ended
up being a failed trade since the price may
have gone beyond the head of the QML by a
few pips.
The price managed to ascend upwards
thereafter to the extent of hitting the

BTCUSD, D1
Trade Analysis
The chart shows an example of a pin engulf price
action in relation to a Quasimodo Level. The price
compressed its way to the QML inside the pivotal
flag limit.
The price managed to reverse the moment it
reached the QML. The price dropped heavily to the
extent of going beyond the conservative target. A
QML was used for TG1. As the price reached the
second TG it reacted significantly.

AUDUSD, H4
Trade Analysis
The price made a deep engulf price action.

Thereafter, the price came back to the
Bearish Engulfing candlestick pattern. The BE
is perfectly aligned with a Quasimodo Level.
The price respected the zone of interest and

went northwards. TG1 would have been
placed at the apex of D-ENG.

AUDUSD, H1
Trade Analysis
The price made a pivotal flag limit. The
engulf price action is considered as pin
engulf. After the completion of the engulf
price action, the price compressed towards
a hidden base that is perfectly aligned with
an SSR. In other words, the SSR in this
example is in the form of a CCC-QML.
Soon after arrival at the decision point the

price dropped and was able to hit the target.
A demand zone was used as a target.
However, left shoulders are powerful places
to use as potential targets if there are
present in a setup.

EURGBP, M30
Trade Analysis
The SR that was used to create the flag limit is in
the form of a two-touch support. The price made
a pin engulf to the pivotal flag limit. The price
decided to retrace back to the Quasimodo Level.
There was a possibility that this trade could have
been missed since the price did not reach the
exact QML level.
The price managed to go northwards to the point

of hitting the target.

AUDUSD, H1
Trade Analysis
The chart shows a pin engulf price action.

Soon after pin engulf, the price retraced to a
Quasimodo level in a compression manner.
The QML is associated with a Bearish
Engulfing candlestick pattern.
The target profit is generally placed a the

the decision point, the price dropped to the
point of hitting TG1. The price was able to go
past that area.

AUDUSD, M5
Trade Analysis
The flag limit was engulfed by price. This is the
main condition that has to be met to justify the
validity of the setup. Thereafter, the price was
able to retrace back to the QML. The QML is
aligned with a BE (Good Sign).
As the price came back to the QML for the first

time, the price reversed as anticipated to the
extent of hitting the conservative target.

EURGBP, M30
Trade Analysis
QML. The setup satisfied the engulf
condition. The engulf is classified as
deep engulf. The price took longer
to come back to the QML.
The price managed to come back

to take the orders that had been
left on the QML. Upon return, the
price bounced and went on to hit
TG1 and TG2. Both targets were in
the form of flag limits. Flag limits
are also powerful places to take
partial profits.

EURJPY, M5
Trade Analysis
The SR responsible for the formation of the flag limit
is in the form of a two-touch resistance. The decision
point is in the form of a D-QML associated with a DJ.
As the price made a pin engulf price action, the price
retraced to the D-QML. The decision point managed
to hold the price on FTB.
The price dropped thereafter and managed to hit
the conservative target which is the apex of the Pin-
Eng. After the conservative target has been hit, the
price made a retracement and continued its journey
southwards. The price travelled to the extent of
hitting TG2 which was a flag limit.

WTI, D1
Trade Analysis
The flag limit was considered a pivotal
flag limit after an engulf price action has
taken place.
The acceleration of price was very

strong (V1 MM). There was a BE kink
that was created along the swap level.
bounced for a while and managed to go
past the swap level.
The price was able to come to the QML

and respected the DP on FTB. The price
went up to the extent of going beyond
the conservative target.

WTI, H4
Trade Analysis
The price created a DJ candlestick
pattern along the Quasimodo Level.
The price was able to come back to
the DJ after a pin engulf price action
was made.
The Doji DP was respected by

price on FTB and went in the
anticipated direction.

WTI, M5
Trade Analysis
There were two trading opportunities in this
example. At the swap level and at the
Quasimodo Level. The price deep engulfed
the pivotal flag limit and retraced back to a
DJ aligned with the swap level. The
acceleration of price was very strong (V1
MM).

dropped to the extent of hitting the target.
Thereafter, the price went to the QML level.

The QML is perfectly aligned with an HB
candlestick pattern. The price managed to
respect the zone of interest on FTB.

US30, M30
Trade Analysis
The flashcard shows two possible
selling opportunities that might have
been capitalized. The first one is a
decision point nearer the swap level.
The price managed to come back to
this RBR demand zone twice. The
RBR was respected on those two
visits that were made by price.
There was another decision point

aligned with a Quasimodo Level.
The decision point is in the form of
an HB. The HB managed to
successfully hold the price on FTB.
The price came again to the BE
after hitting the swap level.
Subsequently, the price went
upwards as anticipated.

US30, H4
Trade Analysis
After the price had deeply engulfed the
pivotal flag limit. The price retraced to
the QML. The QML is perfectly aligned
with a Bearish Engulfing candlestick
pattern.
The QML was respected by price on

the first visit. The price then dropped
southwards.

GBPJPY, M5
Trade Analysis
The price made a deep engulf to
the pivotal flag limit. The price
came back to the swap level after
a while and made a little bounce
as a means to show some respect
to the zone.
.There was a BE decision point
aligned with a QML.
On arrival for the first time to the
QML, the price made a U-turn and
went upwards to point of hitting
the target. The price paid a
second visit to the BE decision
point and bounced again.

EURUSD, H4
Trade Analysis
The flag limit is wide. After the pin
engulf price action the price managed
to pay a visit to the QML DP. The QML
is aligned with a DJ.
The approach of price to the DJ DP
was good. The price approached the
DJ in a three-drive manner. The DJ
decision point was respected by price
on FTB. Thereafter, the price dropped
massively as predicted.

GBPJPY, M5
Trade Analysis
The QML is aligned with a DJ/BE

candlestick pattern depending on how
you see it. The price came back to the
QML after making the engulf price
action.
The first target is on the apex of the

ENG. There was compression
beneath the ENG zone which made it
easier for the price to go southwards
without any form of resistance.

EURGBP, H4
Trade Analysis
The price managed to engulf the flag limit. The
acceleration is classified as V1 MM. The swap
level is aligned with a CBO. Unfortunately, the
price failed to make any decent reaction on the
swap level and went straight to a DJ decision
point inside the pivotal flag limit.
The DJ was respected by price on FTB. The

price dropped to the point of hitting the

EURUSD, M15
Trade Analysis
The decision point in this chart example is in
the form of a Bearish Engulfing demand
zone. The BE is aligned with a QML (Good
Sign).
There was a trade that would have been
capitalized on the swap level. As soon as the
price engulfed the flag limit. The price made
a quick came back to the swap level and
bounced.
Thereafter, the price managed to retrace

back to the BE-QML. The price then went in
the anticipated direction towards the

USDZAR, D1
Trade Analysis
The flashcard shows a sell setup of the flag limit
engulf. The decision point is in the form of a
QML. The engulf is classified as deep.
Upon arrival at the QML, the price dropped to the

extent of hitting the conservative target.

GBPUSD, M15
Trade Analysis
After the price had pin engulfed

the pivotal flag limit. The price
retraced to the QML. The QML is
perfectly aligned a DJ
The price approached the QML
in the form of compression. This
made it easier for price to pass
through upon arrival to the QML.
The QML was respected by

price on the first visit. The price
then dropped southwards to
extent of hitting TG2 which was
in form of a flag limit.

EURGBP, H4
Trade Analysis
There was a setup that would have been

capitalized on the swap level. The price
made CBO price action on the swap level.
As a result, a blind spot setup was created.
For the blind spot setup, the momentum is

classified as V1 MM. As the price came for
the first time to the swap level it bounced
upwards.
Later on, the price came to a demand
zone located outside the pivotal flag limit.
The demand zone managed to hold the
price on FTB.

GBPUSD, H4
Trade Analysis
The price made a pin engulf price
action. The price managed to retrace
to the SnD zone. The supply zone is in
the form of a DJ.
The DJ decision point managed to

hold the price on FTB and dropped

GBPUSD, M30
Trade Analysis
After the engulf price action has been made. The
price retraced to the QML located at the
periphery of the pivotal flag limit.
The QML was respected by price on an FTB

basis. Subsequently, the price dropped until
hitting the D-ENG target.

GBPUSD, H1
Trade Analysis
There is a deep engulf price action in
this example. The acceleration was
very strong to the downside. After a
while, the price decided to pay a visit
to the QML located above the pivotal
flag limit.
The QML was respected by price on
FTB. The price dropped to the extent
of hitting TG1 which is a flag limit. The
price retraced thereafter and continued
its journey southwards.

GBPUSD, H1
Trade Analysis
The price made a D-ENG price
action. Before the D-ENG price
action, the price compressed to the
swap level and went upwards. The
momentum can be classified as V1
MM.
Later on, the price came to a QML

decision point and bounced to the
extent of hitting the apex of the D-
ENG. The price approached the QML
in the form of compression.

GBPUSD, H4
Trade Analysis
There was a left shoulder where price retraced.
The price made pin-engulf price action.
The price managed to make a quick retrace to the
left shoulder. The LS was respected by price on
the first visit. The price then went southwards to
the extent of going beyond a significant low.
The stop loss would have been placed above the
pivotal flag limit.

GBPUSD, H4
Trade Analysis
The decision point is in the form of a QML. The
QML is located inside the pivotal flag limit. The
price managed to make a pin-engulf price
action and retraced to the QML.
The price managed to hit TG1 after the QML
has successfully held the price. Price managed
to travel to the extent of hitting both TG1 and
TG2. TG1 is at the apex of the P-ENG
whereas TG2 was determined by drawing a
QML. The price managed to bounce at TG2
and went further downwards.

GBPUSD, H4
Trade Analysis
The price managed to break the pivotal flag limit by
making a pin engulf price action. There is a QML
aligned with an HB.
The price managed to compress its way up to the
point of reaching the decision point. Upon arrival,
the price dropped to the point of reaching the P-
ENG target.
The stop would have been placed above the HB
kink.

USDZAR, M5
Trade Analysis
The pivotal flag limit is classified as wide.
The engulfed of the wide flag limit is
considered as deep. The price managed
to retrace back to a QML DP. The QML is
aligned with a BE candlestick pattern.
The price was able to make a U-turn on

the QML and dropped. The price
bounced on top of the pivotal flag limit
and paid a second visit to the zone of
interest. Thereafter, the price went
southwards.

USDZAR, M5
Trade Analysis
The price made a pivotal flag limit. The P-FL
is generally wide. After the completion of the
pin engulf price action, the price
compressed towards a Bullish Engulfing
candlestick pattern. The BE is located along
the QML (Good Sign).
The target profit is generally placed at the

the BE decision point, the price managed to
travel to the extent of arriving at the TG1
destination.

GOLD, D1
Trade Analysis
The price engulfed the pivotal flag
limit. The price managed to come
back to the swap level several times
before forming a deep engulf price
action.
There is a Doji aligned with a QML.

The DP managed to hold the price
on FTB.
The SL would have been placed

above the Doji DP.
The price managed to drop to the

extent of hitting TG1. A left shoulder
was used to mark the TG1 level.
The price bounced on TG1 and
further went past the zone to the
extent of hitting TG2.

USDZAR, M5
Trade Analysis
There is a narrow flag limit in this example.
The narrow flag limit was engulfed by price.
This led to the creation of a pivotal flag limit.
There is a QML aligned with a DJ.
There is a possibility that this trade might

have ended up being a loss if the stop loss
was placed above the DJ candlestick pattern.
The price respected the QML area and

dropped as anticipated. The price was able to
arrive at its first destination which is at the
ENG area.

USDZAR, M5
Trade Analysis
The price made a pivotal flag limit. The

pivotal flag limit zone is generally wide.
There is a QML located outside the
pivotal flag limit.
Soon after arrival at the QML, the price
managed to drop to the extent of arriving
at the first destination. Subsequently, the
price compressed its way towards the
entry zone and dropped massively
breaking all significant lows.

USDZAR, M15
Trade Analysis
A pin engulf price action occurred in this chart
example. The price retraced back to a QML
decision point at the apex of the setup.
The QML DP managed to hold the price on FTB.

The stop loss might have been placed above the
QML area. The price made a U-turn upon arrival
to the QML area and dropped southwards.

[THE END]
Thank you…
for taking your time to read this book.

Mikke Gratterro Educa

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1

CMF Research Think like an institutional trader 2

CMF Research Think like an institutional trader 3

My sincere gratitude goes to the founder of RTM (If

The flag limit engulf price action is a difficult concept

CMF Research Think like an institutional trader 4

No liability will be assumed to Chart-Master FX for any

CMF Research Think like an institutional trader 5

This book will focus on the application of the engulf

The Swap Level FL Engulf is classified into two

CMF Research Think like an institutional trader 6

CMF Research Think like an institutional trader 7

5 Chapter 1: Swap Level FL Engulf 42

6 Chapter 2: SnD FL Engulf 81

7 Chapter 3: QML FL Engulf 158

CMF Research Think like an institutional trader 9

Flag limit engulf can be used to determine the directional

CMF Research Think like an institutional trader 10

As the name implies, the

CMF Research Think like an institutional trader 11

If the momentum is weak,

CMF Research Think like an institutional trader 12

In order for a left shoulder

CMF Research Think like an institutional trader 13

Definition Narrow Flag Limit

CMF Research Think like an institutional trader 14

A flag limit can only be

CMF Research Think like an institutional trader 15

CMF Research Think like an institutional trader 16

CMF Research Think like an institutional trader 17

Definition Buy Setup

CMF Research Think like an institutional trader 18

Definition Version 1 Momentum

CMF Research Think like an institutional trader 19

CMF Research Think like an institutional trader 20

CMF Research Think like an institutional trader 21

In most cases, NFLs are

CMF Research Think like an institutional trader 22

CMF Research Think like an institutional trader 23

An SnD can also be used as a target. It can be in the form

CMF Research Think like an institutional trader 24

A left shoulder is an important level that is used

CMF Research Think like an institutional trader 25

A QML is a powerful target to always consider

CMF Research Think like an institutional trader 26

In the case of a buy setup, it is important to look

Even if SnD works on targets, it is not as

CMF Research Think like an institutional trader 27

Secondly, the price can decide to bounce at the QML

CMF Research Think like an institutional trader 29

The second place where the price is more likely to

The last possible place to anticipate a trading

CMF Research Think like an institutional trader 30

CMF Research Think like an institutional trader 31

CMF Research Think like an institutional trader 32

CMF Research Think like an institutional trader 33

For a Sell setup, the wicks should be above the QML

CMF Research Think like an institutional trader 34

For a Buy setup, there should be at least one

CMF Research Think like an institutional trader 35

CMF Research Think like an institutional trader 36

CMF Research Think like an institutional trader 37

CMF Research Think like an institutional trader 39