Identify a peak formation high and a peak formation low. Then identify all the features of the 3 tiered cycle within both on a 3 day and an intraday cycle.
Understand that they will not all looked perfect but nonetheless there are variations on the theme and being able to identify the variations is fundamentally important.
EXERCISE 2
Examine one or more cycles and put yourself behind the screen. In other words, imagine you are the market maker and what you would need to do at different times to trap traders and book your own profit. You will need to consider "where the money is", what might drive traders to behave in certain ways and then consider the methods that have been put forward including circular trading, stop hunting, testing patience, and so on.
EXERCISE 3
Choose a pair, one of the majors, go back and look at the course of 5 to 10 days of trading and try to identify the key features. The features need to include:
1. Peak formation highs
2. Peak formation lows
3. Midweek reversals
4. Levels I, 2 and 3 with their consolidation levels
5. The intraday cycle
6. The US reversals
7. Areas where peak formation highs and lows correspond with intraday reversals
EXERCISE 4
Make a list of all of the patterns, features and characteristics that have been discussed. Create a definition or description for each of them.
EXERCISE 5
Find the expected high/low for the day on the 6 majors using Pivot calculations.
EXERCISE 6
Choose a pair and find and mark-up the divergence patterns using the RSI.
EXERCISE 7
Use TDI in the context of the MM pattern and mark up the entry and exit signals based on TDI
EXERCISE 8
Find and identify examples of the Straightaway Trade. Mark them out, particularly looking for previous trap moves and the levels.
EXERCISE 9
Describe the processes and patterns of a 24 hour trading cycle.
EXERCISE 10
Find stop hunts, M’s W’s, Trend Runs, MYC’s, 200 Bounce, Shark Fin Long/Short on a single pair. If you can’t see it in hindsight, you will never see it in foresight.
EXERCISE 11
Create a MMM Checklist that relates to the trades you will be looking for, the specifics of your scanning, and how you will be taking those trades, including money management, profit targets and so on.
To be continued...
