Welcome To Lig Africa Training [PDF]

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WELCOME TO LIG AFRICA TRAINING

OUR TRADING METHOD • Note : our method been extracted by the market maker method . • Due to our trading experience , we have worked to the method and come up with our way of getting the levels done on the easy way which has nothing to do with the market maker method . • In fact we decided to work on our own glossary to avoid any similarity with our competitor strategy . • As we all been victim of the market maker method , one thing we believe is : the only way to reach perfection is on working to our previews mistakes .

HOW TO IDENTIFY THE TRAP MOVE • You need to understand his reasons first

• Reason 1 : Intrigues traders to take positions

• Reason 2 : Create panic and fear to get you think irrationally .

• Reason 3 : Hit the stops Up/Down

WHEN THE TRAP MOVES ARE MADE

• The beginning and End of the week (Sunday/Monday) • The beginning and End of the day

• The beginning and End of the session • Don’t carry on your trades over weekends .

TRAP MOVES • New session brings new target .

• If a trade doesn’t produce substantial profit in 2 hours , take small profit or loss and light out .

• If the second leg of the formations (W/M) presents ,Restart the clock .

PERIOD SET-UP • Accumulation set the initial high and low

• Stop hunt false move against their real intention

• Real Trend moves for 6 to 8 hours

• Day End off high/low back into consolidation

TRADING ZONE SET-UP 11PM DEALERS SET THE HIGH/LOW 1- ASIAN SESSION OPEN AT 2:30AM THE PRICE IS HELP TO ACCUMULATE ORDERS.

2- 8AM , 9AM AND 10 AM AGGRESSIVE MOVE WILL BE SEEN, EXTENDED INITIAL HIGH/LOW OF THE DAY .

15 – 25 and 50 pips UP

Initial High IHOD

15 – 25 and 50 pips Down

Initial High ILOD

TRAPPING ZONE SET-UP • Friday / Monday

• Most often the market direction on Friday is the direction it goes on Monday .

• If on Monday it goes into consolidation for the whole day , it means the market will still keep Friday direction .

LONDON TRAPPING SET-UP

London Trapping Set-up :

•

Is when the second leg W/M is formed on the 8:45 Am, 9:45 Am and 10:45 Am candles which are ( Spinning top , Hammer , Inverted hammer , Doji types and Rail Road Track)

• Force move End session beginning , price Rise/Drop as we going to the End of session in Asia .

IMPORTANT TIMINGS • Learn to identify the moves and formations at the appropriate time .

TWO MOST IMPORTANT TIME:

1 – (8:45 ,9:45 and 10:45 AM) London Trapping Set-up 2 – ( 2:45 and 3:45 PM) USA Trapping Set-up

TRAPPING MOVES • There are restriction placed on the market . • The market can only move for 200 pips per day and 600 pips per week . • The daily and weekly pips helps us to determine the high volatility days of the market: 600/200= 3 • The 3 high volatility days:

The answer is the 3 high volatile days of the week . 1 – Monday 2 – Wednesday

3 – Friday • That why we use the ADR to help us identify the HOD/LOD turning point .

THE PERIOD COUNT • Its based on traders psychology .

• Fear , Greed and inexperience are used to prey upon traders .

• The market forms zones or period to trap traders ,book profit and hit the stops HI/LO.

• Sometimes it will be easy to identify and sometimes it wont .

PERIOD COUNT • There are 3 periods Rise/Drop over 3 days .

• Remember at Period 3 moves will be seen . 1. First period Rise/Drop:

Its driven fast by the market makers.

2. Second period Rise/Drop: Its driven slow in absence of the market maker.

3. Third period Rise/Drop: Its driven fast by the market maker to create panic and trigger the stops : Because they are setting up the traps for the turning point . “”During these 3 periods, market makers will buy/sell from traders to create positions, with the heaviest volume being seen at the third period””

CONSOLIDATION AND THE COUNT 1 – THERE IS A CONSOLIDATION FOR EACH AND ONE OF THE PERIOD.

2 – THE STOPS WILL ALWAYS BE HIT BEFORE THE NEXT PERIOD 25/30 PIPS CAN BE SEEN. 3 – MARKET MAKER ARE TRYING TO HIT THE STOPS HI/LOW TO MAKE EASY WORK THE NEXT PERIOD. “IF YOU CAN COUNT THE PROFIT WILL BE REALISED”

• Period Rise is labelled as such:

•

Prise =

Consolidation+Rise

• Period Drop is labelled as such:

•

Prise =

Consolidation+Drop

Rise Consolidation

Consolidation

Drop

4 TRADES TO FREEDOM Once you understand how the market is based there is 4 trades you should focus on , these trades are 95+ accurate . Mastering them will make easy your trading journey and hardly fail if well predicted . 1. Trap move to the High “M formation” London/Us trap move setup. 2. Trap move to the Low “W formation” London/Us trap move setup.

3. Straight Away “RISE” 4. Straight Away “DROP”

TRAP ZONE TRADING TIPS

1.

For the pair to be tradable the consolidation zone has to be 25 to 50 pips .

2.

The pair automatically becomes non tradable when the consolidation zone goes over 50 pips .

3.

Fast moves into forex is fake (its to confuse traders.)

4.

When they are working the HIGH , must look for short opportunities.

5.

When they are working the LOW, must look for long opportunities.

6.

Stop trading everyday, no set-up , no trade.

7.

Work on becoming highly selective.

8.

Set-up your trading hours as follow: - Trade London session for 4 hours - Trade US session for 2 - 4 hours

TRAP ZONE TRADING TIPS • You must have a reason to Enter the market . - a set-up - Period count

- Trend Direction - BUY/SELL - Light OUT

•

For you to take a trade there must be a signal - High/Low - London/US Trap set-up - Periods Count

- False moves • “If the second leg of a W/M fail to take out the previews leg of the formations and End up with RRT (Rail Road Track) it’s a set-up”

TRADING SYSTEM 1. EMA’s 50/200 2. Candlesticks and patterns.

3. Boxes ( blue box specifies the Asian session and the Red box specifies US session . 4. Pivot Points. 5. TDI 6. ADR 7. Periods counts

TREND

• There are two types of trends the Marker Maker Trend (Real Trend) and the technical trend (the rest of the world)

• Periods are visible on all time frame , clearly visible on 1 hour chart . • Trend is set by the Market Maker can be reversed at anytime. • Understanding this gives you an edge to trade both ways .

TREND •

Trend are set as 3 days period .

• DAY 1:

Turning point day peak formation HIGH/LOW. - Market comes as surprised , catching everyone following indicators .

• DAY 2:

Moving averages on 15 Min will cross. - 50/200 EMA’s will cross,

- Retail traders will wait for confirmation, Market Maker will force their hand to get the fund committed.

• DAY 3:

Traders are convinced this is the right Direction.

-Market Maker shows acceleration and separation from the moving averages 50/200 EMA’S. -Market Makers apply the brake and trap everyone (except us) the wrong way.

WHY THERE IS MORE THAN 3 DAYS TREND • Trend Reset is used for the market maker to book profit and not to reverse the directions. • The Reset will present as a new peak formation .

• 2 or 3 days can be expected on the original trend direction. • However , if nobody falls for it , they may reverse after only one more Rise/Drop . • 4 or 5 period might be identified .

• Once the Reset peak is identified the trend Bias will be inline with the peak for 2 or 3 days . • It is safe to trade only London/US trapping Set-up, if you have identified the Period direction and Trap moves.

TREND - Knowing where you are on the count will help you project the next move.

- The peak formation must always be identified.

- If a double formation appears on the 1hour time frame exit the trade immediately.

- Anticipated directional moves line up with the peak formation .

- Begins after the trap move, and Rise/Drop for 6 – 8 hours .

- If period 1 is identified the trade offers more pips and can be converted to a swing trade .

TREND • Market up-trend is labelled as such

• W V1 V2 M • Market up-trend is labelled as such

• M A1 A2 W

PRICE ACTION • Identify the market condition

• Candles in the wrong market condition are meaningless.

• Certain candlesticks at HOD/LOD which are meaningful .

1. Hammers / inverted Hammers 2. Spinning top 3. Doji 4. RRT ( Rail Road Track)

HOD/LOD • When candles spikes at the appropriate time ,its extending the HI/LO for the session • When it pulls back , the HIGH/LOW is formed. • When the market Go near the price and fail to break the previews price ‘‘you have your set-up.’’ • The following candles needs to occur at or near the HOD and LOD. • Their presence confirms the set-ups. 1. Hammers / inverted Hammers 2. Spinning top 3. Doji 4. RRT ( Rail Road Track)

HOD/LOD - Market Makers induce traders to take the wrong directional move by sharp aggressive price changes at or near HOD/LOD . - These patterns will almost reveal a reversal Set-up. - Why would the reversal fail ? If they did not reach the trap volume they were seeking , an extended trap move will be seen (4th day period Rise/Drop).

- When trap volume is not met the Market Makers will have 2 moves left. 1. Hit the stops RISE/DROP 2. Hold the price and handle the cross pairs, if the price is held on the major pairs.

TRAP ZONE TRADING TIPS

1. If you are caught by the trap move, you must wait for the next level Rise/Drop . Minimum 2 hours or session change over.

2. Good set-up present in the interval of 30 – 90 to 2hours.

3. 2 or 3 pins to the HIGH/LOW is a sign of a RISE/DROP

4. 2 or 3 pins to the 200Ema’s is a sign of a Rise/Drop depends on the direction of the trend .

HOD/LOD 1.

Certain behaviours at these price help us identify the HOD/LOD.

2.

3.

4.

5.

How to anticipate the High/Low.

Market Makers act volatile at these price points.

High/Low are extended quickly to trigger the stops and create panic in the Market.

The Market Maker will cut the initial HOD/LOD in 3 swipes to change the market psychology.

6.

Induce you to change your direction and recommit your fund in the new wrong direction .

HOD/LOD 1.

The spread will open up

2.

These zones will be worked for 30 – 90 to 2 hours

3.

The market seems fast , but wont really move.

4.

Once their goal is achieved they will shift off the HOD/LOD in one bar.

5.

Once the HOD/LOD is established there will be a big pull back 25 to 50 pips, stop all the weaker traders and hit the stops both way to confuse trades .

TRAP ZONE TRADING TIPS

• Simply Buy/sell the 3rd period stop triggers on the 2nd leg of the W/M formation . • Always Buy/Sell the consolidation levels when the market comes to rest. • Buy/Sell peak formation at Period 3 , only trade closed candles with multiple confirmation . • BUY/SELL upward and downward trap moves , only after the market consolidate. • When the signal appears , trade without fear . • ALWAYS BE PREPARED FOR ONE MORE MOVE TOWARD THE STOPS • IF IT DOES IT ……..YOU GOOD TO GO . • If they hit the stops to the HIGH………………………..you SELL

• If they hit the stops to the LOW………………………...you BUY …………………………………..END……………………………………………………