Market Maker Masters

Forex Trading Times

-Asian Session: 8:30 pm- 3 am

-Gap Time: 3- 3:30 am

-London Session: 3:30 am- 9 am

-Gap Time: 9- 9:30 am

-New York Session: dies off around 12- 1 pm

-Gap Time: 5- 8:30 pm

Two Most Telling Candle

3:30- 3:45 am London Session Opener

9:30- 9:45 am US Session Opener

Brinks Trade

"Any trade you make, remains valid until the I-LOD, where you buy long, or I-HOD where you sell short, is breached."

MM's Have Limitations

They have restrictions placed on them by IMF and The World Bank. That is why ADR (Average Daily Range) is such a useful tool.

They can only move most pairs 200 pips a day, 600 pips per week.

3 Important Things You Must Learn

1. Patterns

2. Timing

3. Levels

Market Maker Cycle

M A A W

1  2  3 R(everse)

W V V M

1  2  3 R(everse)

"The pins on the cable on Level 3 will become, or start to paint, in the direction that they're trying to now trap."

-MM's will NOT move in one direction more than 3 times.

-In addition to each of the 3 levels there is a corresponding level of consolidation.

Lot Size (Cheat Sheet)

(Micro Lots)

.10 ----> $1 per Pip

.20 ----> $2 per Pip

.30 ----> $3 per Pip

.40 ----> $4 per Pip

.50 ----> $5 per Pip

.60 ----> $6 per Pip

.70 ----> $7 per Pip

.80 ----> $8 per Pip

.90 ----> $9 per Pip

(Standard Lots)

1.0 ----> $10 per Pip

2.0 ----> $20 per Pip

3.0 ----> $30 per Pip

4.0 ----> $40 per Pip

5.0 ----> $50 per Pip

6.0 ----> $60 per Pip

7.0 ----> $70 per Pip

8.0 ----> $80 per Pip

9.0 ----> $90 per Pip

(10 Standard Lots)

10.0 ----> $100 per Pip

GLOSSARY

ADR: An indicator that tracks average daily range of a currency.
Bearish Trend: The momentum of the market where the average movement of a run/trend is falling.

Book a profit: Closing all positions and taking a profit (you can book a loss).
Bullish Trend: The momentum of the market where the average movement of a run/trend is rising.

Brinks trade: A type of trade that uses a timing element as part of the setup.

Candle Spike: An aggressive candle used to shift the trading zone and trigger the stops.

Consolidation: Any area where price appears to chop. In reality, Market Makers are building positions.

Correction: The lowering of price.

Cross pairs: Pairs comprised of majors other than the US dollar.

Dealing spread: The difference in pips, between the bid and the ask. (The cost of doing business).

Extended stop hunt: Price is extended beyond the normal 25 to 50 pip stop hunt; occurs when traders refuse to commit their funds.

Gap Time: The changeover between sessions in which one Market Maker transfers instructions to the oncoming dealer.

High/Low board: The board is used by the Market makers to track the high and low of the day.

I-HOD: Initial high of the day; the high of the day that is set during the Asain market hours.

LOD: Low of the day; the lowest point on a chart in a 24-hour period.

Long position: The act of buying.

M top: A type of stop hunt used to trap the traders and validate retail orders. (Appears at the HOD)

Market Maker spread: The distance between the I-HOD and the I-LOD. (Less than 50 pips is ideal).

Maket Maker trend: The real trend of the market, different than that of what retail traders see and perceive.

Market Maker (MM): The group of people that have power and influence over the market. They have a huge equity base, control over the media, and influence in the political area.

Market Sentiment: A feeling or belief that the market will behave a certain way, perpetuated by news and Geo political events. It's not based on truth, and has no bearing on how the market will actually perform.

Net change: The difference between the opening price and the current market price.

On the board: Having an open position.

Open float: The amount of equity tied up to manage your positions. (Can be negative or positive).

Pips: The smallest unit of price for any currency, pips refer to digits added to or subtracted from the fourth decimal place, i.e. 0.0001.

Pullback: The tendency of a trending market to retrace a portion of the gains before continuing in the same direction.

Range: When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them.

Resistance level: A price that might act as a ceiling. The opposite of support. 

Short position: The act of selling.

Spread: The difference between the bid and offer prices.

Support level: A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.