The Trading Bible

2.0
Supply/Demand & Liquidity Concepts

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 FOREX RISK DISCLOSURE:

The national futures association (NFA) and CFTC (Commodity futures trading commission), the
regulatory agencies for the forex and futures market in the United States and Canada, requires that
customers be informed about potential risks in the forex market. If you do not understand any of the
information provided on this page please contact us or seek advice from a financial advisor.

Risks associated with Forex trading off- exchanges foreign currency trading on margin carries a high
level of risk and may not be suitable for all investors. The high degree of leverage can work against you
as well as for you. Before deciding to invest in foreign exchange you should carefully consider your
investment objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore,
you should not invest money that you cannot afford to lose. You should be aware of all the risks
associated with off-exchange foreign currency trading and seek advice from an independent financial
advisor if you have any doubts. Any opinions, news, research, analyses, prices or other information
contained in this course and or PDF is provided as general market commentary, and does not constitute
investment advice. Robert A Mirlach, aka “Precision Markets Inc” and or “The Precision Markets Trading
Course” or "The Precision Markets Trading Bible" will not accept liability for any loss or damage, including
without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on
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Accuracy of Information and the content on this website and or PDF are subject to change at any time
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Government Requires Risk Disclaimer and Disclosure Statement:

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN

LIMITATIONS, UNLIKE AN ACTUAL PERFORMANCE RECORE, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE
RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN
GENERAL ARE SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF
HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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Introduction To The Forex Market

Before beginning your trading journey within the forex market

there are some basic things you need to understand about it.
The currencies market has over 6 Trillion dollars a day go
through it. As a human you will have many emotional issues
to deal with. The majority of the market is controlled by
computer algorithms, with zero emotion.

You are up against the best and brightest in the world. The
market is rigged against you and designed to make you lose.
It is a 0 sum game. If you win, you pay the broker who pays
the bank. If you lose, you pay the broker who pays the bank
(who also profited off your loss). However with a proper
trade plan and proper execution there is a way of being
profitable within the market. This PDF is was created to help
you find your edge in the market.

This PDF is divided into several sections to help you piece

together a plan that can create a winning edge: Market
basics, Market Structure, Pricing(Premium vs Discount),
Supply/Demand selection, Targeted/Protected highs and
lows, Liquidity & Inducement, Execution, Management.

This strategy is strictly price action based and no indicators

will be used aside from inside bar.

Lets Begin!

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 Market Basics
News:
At the start of your trading day you must check for high impact news(red).

I recommend using one of the following sites:

This is the one I use:

https://www.forexfactory.com/

This one is also works, comes down to personal preference:

https://www.myfxbook.com/forex-economic-calendar

I do not recommend trading news. Its high risk and protecting capital is our
number one goal. If you are in a position before hand you need to have risk off
(partials taken or SL at breakeven). I will go over how to do this properly in the
Management section.

Broker Selection:
With the Smart Money Concepts strategy we use tight stop losses, so a broker with
the tightest spreads is recommended. I recommend doing some research and finding
the best broker for your country. I use Fusion Markets, low spreads(.02 EU), cheap
commissions ($2.25/lot)

LINK:
https://fusionmarkets.com/en?
cxd=41974_1632440&cxdHub=FUSION_MARKETS_X

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 Market Basics

I recommend getting a paid version of Tradingview so you can have some

options. I use the premium version so that I have the option to use the seconds
timeframe to execute if I chose. But even the lowest paid version should be fine to
start with. We use forex.com or oanda charts only. Stay away from FXCM.

I only recommend trading one pair to start with. As BFI(Bank Financial

Institutions) traders we look for very intricate details that require a lot of focus.
One pair will do you just fine starting out. Once your profitable with one you can
then move to two pairs if you chose, but that's all I would recommend trading at
once.

Any of the USD majors are great, although the easiest pair with the best spreads
to trade is EURUSD. Due to its tight spreads and high volume EU respects our
trading system the best which you will give you the confidence you need,
especially if you are a beginner just starting out.

As traders we need to rewire ours brains with successful habits and replace the
bad habits. Psychology and Mindset will have a huge impact on your trading.
The discipline practices taught in this PDF must be followed. I can show you
the way but you have to practice what I teach over and over till you have
reprogrammed your brain.

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 Understanding Pips and Spread

EUR/USD 1.17185 1.17195

The 4th decimal point determines our pip value. The current spread is 1 pip

EUR/USD 1.17192 1.17195

The current spread in this example is .3 of a pip

When entering a trade you must account for spread. Add the spread difference to your SL for sells
and add the spread to your buy by front running the order just slightly to ensure you get tagged.

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 Best Times To Trade

We have 2x 3 hour windows per day where volume is at its peak and volatility is
high. These are the times we want to be trading as this adds to our edge and is
also part of our S.O.P. (Standard Operating Procedure)

First off before anything, understand that London moves the markets. We run
our charts on London time (UTC + 1) or (UTC) During Daylight savings time.
It doesn't matter where in the world you are located, as a BFI trader you operate
on London time. It is the financial hub of the world. It is the only Timezone you
will use.

London Kill Zone (LKZ)

The London Kill Zone starts at Frankfurt open which is 7:00 AM (UTC +1 or
UTC) and goes to 10 AM

New York Killzone (NKZ)

The New York Killzone starts at 13:00 (UTC +1 or UTC) and goes to 16:00

Yes there can be many trades outside these trading hours, but these hours are
your highest probability of success. Give yourself the chance to succeed. This is
one of the most important parts of our S.O.P.

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 Investing Basics

The idea of investing is to buy cheap (discount) and sell high

(premium). If we take a short then the idea is to acquire positions
when they are highly priced (premium) and dump the positions while
we are in the cheap price range (discount).

This is where Supply/Demand comes in. Supply zones are areas we

want to sell off, as we have an over supply of a currency at that time.
Demand zones are zones we want to buy off of. The currency is in
demand meaning, we have a shortage.

The easiest way to think of the concept is think of the housing market,
if the market is low on inventory because no one is selling then the
prices of houses go up due to low inventory. Now on the flip side of
things if way too many people are selling their houses at once then the
market if flooded with more inventory then there is buyers so the
house prices all go down. The currency market is no different.

Part of our edge is to be buying/selling in the right areas. Premium vs

Discount pricing will get us higher probability setups, paired with
proper analysis we can ensure we are not overpaying for positions.
We will discuss this in further detail when we get to our Pricing portion
of the PDF.

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Market Structure

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Market Structure

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Market Structure
4H (Macro) Time Frame

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 Market Structure
Structure breaks are only confirmed by candle body not wicks. Wicks are only considered
structure breaks on the 1M or seconds. If you pay close attention in the below example when we are
bearish the highest point before the BOS and lowest point is pulled. When we are bullish the lowest
point before the BOS and highest point is pulled. Any other wicks or sort structure in between those
two points would be classified as substructure(sometimes called internal structure).

For a trend to be confirmed 2 highs or 2 lows must be created. The first break of structure makes us
unconfirmed and both buys and sells are still on the table. Once a trend is confirmed Expectational
Orderflow is followed till trend ends. (we'll touch more on this)

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 Market Structure
Multi timeframe analysis

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Market Structure
4H (Macro Time Frame)

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 Market Structure
15M (Micro Timeframe)

Notice how we are always pro 4H trend phase or

counter 4H trend. There are more pips to catch
going pro 4H trend and you have a higher chance
of landing long trades in a bullish market.

Pro trend trades in this case would be targeting the

weak highs. Counter trend trades would be
targeting the nearest demand at 50% of the 4H leg.
Once price is in discount, shorts become lower
probability. More will be explained further into the
book about weak/strong highs/lows and
premium/discount pricing.

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 Market Structure
15M (Micro Timeframe)

Notice how we are always pro 4H trend phase or counter 4H

trend. There are more pips to catch going pro 4H trend and you
have a higher chance of landing short trades in a bearish market.

Pro trend trades in this case would be targeting the weak lows.
Counter trend trades would be targeting the nearest supply at
50% of the 4H leg. Once price is in premium, longs become lower
probability. This will be explained in further detail once we reach
the section about weak/strong highs/lows and premium/discount
pricing.

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Understanding Timeframes + Pairing Them Together
(Macro/Micro)

To give ourselves a chance to succeed in the markets we must use every edge
at our disposal. One way to get an edge is the selection of timeframes and
pairing them properly. As BFI (Bank/Financial Institution) we must have rules
we follow. Our analysis will be done on the Daily/4H/15M. 4H is our Macro
analysis. 15M is our Micro analysis.

The majority of our directional bias and intraday trading ideas will come from the
4H/15M time frame. Daily is used to see where the current pricing on the 4H
(Premium vs Discount) is and when the current 4H trend is likely to end. The
majority of times we can find our Micro POI's on 15M, however 15M structure
can be loosely used meaning that 10M-30M will be cycled through if no clean
POI is found on 15M.

To be a truly successful trader you need to start creating habits. One of these
habits is only using 2 timeframes for analysis. You must rewire your brain and
create an S.O.P. (Standard Operating Procedure). The military doesn't just go
to war; they have an SOP and a plan. I'm here to give you the tools you need to
have both, but you must be disciplined and stick to the plan. You will see me
touch on SOP's as we go through this book.

Macro(4H) Micro(15M)

WEAK 4H LOW
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 Execution Timeframe
The Execution timeframe taught will be the 1M. This time will not be used for anything other then
execution. Our directional bias will come from the Macro/Micro analysis. You will be taught all
pieces of the puzzle and how to put it together. The SOP must be followed. You will be taught a
couple ways to execute, but as BFI traders we do not deviate from the plan. If our specific setups
don't happen we don't enter. Simple as that. Plan your trade. Trade your plan. Even failing will be
planned and mitigated through management. DO NOT SIT ON THE 1M CHART THE WHOLE
TIME.

Micro TF Execution TF

WEAK 4H LOW

WEAK 4H LOW

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Although its very hard to see in the above photos, the following
trade is a 36.8RR trade, targeting the weak 4H lows from the
extreme Supply in Premium pricing. This is just an example of
what this system can do. Both intraday and swing trading styles
can be done with this trading style.

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 Expectational Orderflow

Expectational Orderflow teaches us that a confirmed trend shall continue until it

doesn't. Meaning, in bullish trend we continue buying until the buys don't work. In
a bearish trend we continue selling until the sells no longer work. Market
structure is valid until it is broken by CANDLE BODY CLOSE, in which case
you would have a trend change and a new unconfirmed trend begins. Once the
trend begins and is confirmed (2 highs or 2 lows are created) we use
expectational orderflow and keep trading in that trend direction.

4H and 15M works the exact same as Daily and 4H together. Daily orderflow
trumps 4H orderflow and takes precedence. 4H orderflow trumps 15M orderflow
and takes precedence.

The majority of our analysis is done on 4H and 15M, Daily is mainly used to see
how well priced our 4H position is (Premium VS Discount).

In our next section we're going to explain Premium vs Discount pricing to ensure
we are paying the proper price for our order. Pricing will also let us know how
probable a setup is to play out from a certain POI (point of interest). We want to
ensure we are not buying too high in the leg or selling too low in the leg as the
probability of that trade panning out gets much slimmer. Although expectational
orderflow teaches us to follow trend till it doesn't work, we have higher probability
setups and lower probability setups.

Market Structure is valid until it is broken.

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 Pricing
Premium Vs Discount

The above example is a Premium Vs Discount pricing model. We

want to sell from the premium and buy from the discount. This is a
simple fib tool with the 0%, 50%, 100% setting. This simple tool will
help us insure we get the best deals on our investment

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 Pricing
Premium Vs Discount
In a bullish trend the fib is pulled from the start of the impulse to the end of the
impulse. The impulse must break structure and confirm trend continuation. We
then want to wait for discount pricing (the lower 50%) before we buy again to
make sure we have the best pricing possible and we're not paying too high of a
price to acquire our position.

This is on the 4H timeframe. In the meantime we can safely short a position up

to 50%. Shorts after the 50% become lower probability as the 4H is bullish. The
15M becomes bearish in order to get discount pricing. Understand that this is
the retracement phase and it will likely end and 4H trend will likely continue.

Add a little bit of body text

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 Pricing
Premium Vs Discount

This is the same chart from up above but in a 15M time frame. We can
safely short this into the 50% zone (most times). With a 1M execution
this trade ends ups being a 34.5 RR. We will learn more about this in
the entries/execution portion of the booklet. Once Price taps into
discount we can begin looking for the market to long again so we
observe for clues of the market wanting to do that. In this example
price didn't retrace very deep, other times the retracement may be
much more extreme and come much deeper.

As BFI traders we have certain rules that give us higher probability setups, if
we adhere to these rules we can be profitable. These are the S.O.P.'s
designed to give you an edge. As you get more advanced you will learn when
its appropriate to bend these rules and trade with higher risk exposure. That
skill only comes from time in the market. We will not chase the market. We
will let the market come to us and develop that discipline. Even if it
means not executing a trade that day.

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 Pricing
Premium Vs Discount

In a bearish trend we pull the fib from the start of the impulse to the end. Structure
must be broken. We will not look for another sell till price returns to the premium
pricing. In the meantime we can look for a buy into the premium zone.

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 Pricing
Premium Vs Discount

Although this buy is a little more advanced (from the only

unmitigated demand) it is still valid to take up to the 50% zone
minimum. The sell in this case comes from the extreme. This is
proper trading with proper pricing. We will develop proper rules
for execution. Only then do we actually execute. In the next part
of this PDF we will talk about POI selection. How do we pick the
best Supply/Demand zones? And how does Premium vs
Discount tie into it all?

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 POI Selection
Picking Supply/Demand Zones
The best POI's create new structure, and have resting inducement in tact. We will talk more about
inducement in next section. For now lets focus on pulling Supply/Demand zones.

Supply

Demand

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 POI Selection
Picking Supply/Demand Zones

Supply

Demand

Demand is pulled from the top of the body of the last down candle to the bottom wick before the
momentum candle to the upside. Supply is pulled from the last up candle before the momentum
candle down, we pull from the top of the wick to the bottom of the body. Supply and Demand
may also be called an orderblock. It just means that's the BFI's getting involved in the market.
We want to ride their wave and enter on the mitigation. This happens on every timeframe.

Mitigation will be discussed in the next section. If you are ever unsure what candle to pull as it
can be confusing in some ranges, it is always the candle before momentum. The above
method is a basic orderblock method, there are many refinements of supplys & demands and
you will learn them better with time in the market. They come in ranges, pivots and wicks, but
one thing must happen for it to be considered an orderblock, they have to have momentum,
and the best orderblocks create new structure.

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 POI Selection
Picking Supply/Demand Zones

These are all examples of what

supply/demand zones could look like.
If the supply/demand wick is larger
then the body I'll pull just the wick.
However if you're unsure just use the
above method.

Weather its a range or pivot or

wick it really makes no
difference, its the candle
before momentum!

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 POI Selection
Breaker Blocks

A breaker block is essentially a demand that becomes a supply or a supply

that becomes a demand. For this zone to be valid it is required for price to
come right through the POI with no interaction whatsoever inside the zone.
Meaning there was no wicks or signs of struggle showing when the push
happened. The push through must be clean.

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 POI Selection
Breaker Blocks

The most important thing to remember is these happen on every time frame.
Both bullish and bearish scenarios. These zones can be treated like any other
supply or demand, we look at the reaction inside these zones when price taps
and decide if we want to get involved or not.

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 POI Selection
Breaker Blocks

Once again we have a clean push right through. The concept remains the same as
explained above. Both 4H and 15M were used for examples on EURUSD and
GBPUSD. These happen on every time frame and every pair.

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 POI Selection
What makes a zone strong or weak?
How do I choose better POI's?

Some good questions to ask yourself are:

What did that POI do?

The more it did the stronger the POI is

Was it responsible for a new high or low?

These are stronger points and will likely have BFI protection if the market is to continue
with current orderflow.

Did it break substructure or market structure?

The POI that created new structure will be much stronger than one that didn't.

Is there Inducement near my POI?

This is shown in the inducement section, but a POI is always stronger if the inducement
is in tact.

Is this POI a CHOCH & FLIP ZONE?

Chochs and Flips happen on every time frame, not just entry timeframes

Has the zone been Mitigated?

Although there's is no real answer for how long a zone will hold, one can assume it gets
weaker every time it gets tapped.
Unmitigated zones are always a great thing to have pulled and to look for price to return
to.

Pricing (Premium vs Discount)

The simplest concept, yet it is often over looked. We want to be getting a good deal on
our investment. Many of us forget the simple pricing concept.

Liquidation and momentum

Did the POI take the LQ before momentum( reaching wick that grabs LQ)
Are bearish candles or bullish candles larger? How long did it take it to travel up vs
down? Areas of momentum are usually a sign of BFI presence, it is assumed these
zones will have protection to some extent.

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 POI Selection
Cycling through time frames

People are quick to dismiss time frames. I use everything from 10-
30M to find my micro zones. That included the 11M, 12M, 13M,
20M. Sometimes it takes us looking at these other time frames to
find a proper POI.

Cycling through timeframes can also help us find CHoCHs and

flips cleaner and quicker and get use into a trade. We need a HTF
confirmation to get involved. Sometimes that comes from the 10-
14M ChoCHs instead of the 15M (which will likely show up as
wicks, and your eyes may not be trained to see them as easy.

15M

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 POI Selection

13M 1M entry

Notice how cycling through time frames can bring in higher time
frame confluences you may not have noticed otherwise. Our eyes
get tired and hypnotized, sometimes switching time frames makes
us see what we would otherwise miss.

Pulling a supply or demand is no different. A zone may look cleaner

to you on the 13M then the 15M. Use the time frames to your
advantage.

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 POI Selection

The range volume tool can be really handy for spotting POI's as well. Not only is that
candle I pulled the demand from an inside bar and the cause of the supply 2 demand flip,
but it also has the highest volume. One can assume the BFI's will protect it to some extent.
Unfortunately Forex.com doesn't have volume so I recommend using OANDA if you want to
use this tool. Forex.com is the most accurate, OANDA is #2. Stay away from FXCM.
Any volume spike is a potential POI.

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 Zone Creation
BFI Order Stacking

BFI's take such large orders that they cannot process orders that large
without disturbing the market. Each currency pair comes with a certain ADR
(average daily range). BFI's must respect the ADR, so over the course of
the month the pair will average out to a certain number of pips per day.
EURUSD is roughly 68 pips per day average, GBPUSD is roughly 120 pips a
day average. Over the course of the month the daily ranges must average out
close to these numbers. BFI's will work within these guidelines. If a BFI
simply put in an order for 100000 lots (random number chosen for example)
of EURUSD the market would shoot up like crazy(providing that the orders
actually got filled). There would also have to be 100000 lots of the opposite
order being transacted. Meaning that if a BFI wants to buy 100000 lots of
EURUSD, some one has to sell them 100000 lots. Usually the market will not
be able to fill these large orders as there's not enough liquidity available.

So what do they do and how do they get the liquidity?

They generate their own liquidity. They will take both buy orders and
sell orders at the same time and park the market in a range until they
accumulate a large enough of a position size. Once a desired order
size is achieved they will leave the range by initiating price out of a
range. They will then return to the range and start dumping the
opposite side orders to get out of drawdown. For example they took
both buys and sells and initiated a buy program they will be in profit
on their buy positions as they leave the range; however, they'll be at a
loss on all the sell positions, so they will slowly return to the range
and mitigate out of their sell positions. They'll get rid of some at a
loss, some at breakeven, and some in a small profit and then the real
move begins.

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Zone Creation
BFI Order Stacking

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 Mitigation
Range, Initiation, Mitigation, Continuation

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 Liquidity and Inducement
Liquidity

Liquidity is everywhere in the market. The market requires liquidity

to move. It is considered the gas needed in your car to get from point a
to point b. There are resting orders and stop losses at all the points I
have marked on the chart. The markets algorithms are programmed to
come get them, we just don know when.

So yes, liquidity is very good to be aware of, especially when it has

been swept. Usually once it is swept and we see an impulse the
opposite direction happens it can be a great confluence to form a trade
idea there, providing it is with trend and supported by other
confluences.

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 Liquidity and Inducement
Range expansion

This same scenario will play out over and over again. A range is created. Buyside
and sell side liquidity will be wiped 2-4 times before the real move that is intended
happens. Program this into your head as this can be a great confluence to add to your
trading plan. For example, if LQ is swept before an impulse that is a stronger orderblock
then one that didn't sweep liquidity.

As BFI traders we must look at these finer details. That's great if it left the range, how
did price leave the range? Was LQ swept? Were equal highs or lows created? Was the
candle engulfed when momentum has kicked in? What was the initial reaction like? Was
it aggressive? Was its not aggressive? We will talk more about reactions in this PDF.
These are the details you will pay attention to. That's why I recommend every one
trades 1 or 2 pairs max! LQ can be a great thing to target when looking for a place to
pay ourselves!

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 Inducement
The liquidity dropped before an orderblock

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 Inducement
Theory

Theory is if a supply/demand left and dropped inducement as it made a

new high/low that supply/demand should make a better POI than one
that doesn't have inducement. If the inducement is in tact still then that
POI has a higher chance of holding. If the inducement is swept and a new
high or low was created without touching our POI the next time we come
to that POI the chance of it holding is much lower as the inducement is no
longer in tact. The fuel has been used to make the move. Look for
inducement when selecting POI's.

A very aggressive impulse with no inducement what so ever has a

lower probability of holding. With this theory in mind we can assume
that if price comes to the original POI it will likely be run.

No inducement is dropped. POI gets run

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Protected vs Targeted Highs/Lows
(Also referred to as strong/weak highs & lows)
The lows and highs have a job to do. A low's job is to run a high. A high's
job is to run a low. If a low puts in a new high it is considered a
strong(protected) low. If a high puts in a new low it is considered
strong(protected) high. Taking the exact same theory now lets say we're
consistently making new highs and suddenly we fail to put in a new high
what happens to the low?? Its considered a failed reaction and now that
low becomes weak(targeted).

On the flipside of things if we're consistently putting in a new lows and we

fail to put in a new low that high becomes weak(targeted) and will likely
be run. Paired together with other confluences taught earlier in the PDF
we can have a better idea of where to take profits and what POI's should
hold and which ones shouldn't.

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Protected vs Targeted Highs/Lows
(Also referred to as strong/weak highs & lows)
We take orders off the strong points and take profits at the weak points. A low must
be broken with a candle body close on HTF. On 1M or below we consider wicks as breaks.
On 15M or above we want to see bodies as only wicks are usually just a sweep of liquidity.

In the example below we wick below the demand but fail to break it. That high now
becomes weak and gets run. Keep in mind we are following orderflow in a bullish trend
here. This theory applies to every time frame. Use it to build a HTF narrative.

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Flip Zones and Change of Character
S2D and D2S Flips

A flip zone essentially is just an area where buyers took control from sellers or
vice versa. By itself this method is not enough to jump into a trade. If its just a flip
then we want to use it pro trend. If we want to go counter trend a choch is
needed(change of character) paired with an HTF POI.

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Flip Zones and Change of Character
CHoCH - possible trend change

The above example is a change of character(CHoCH). The main difference

between a choch and flip is a flip can happen on a continuation model. A flip
does not sweep lq and can be used after it left a POI in a continuation. A choch
sweeps liquidity, and goes the opposite direction, always paired with a HTF POI
(15M and up)

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 Trade Management

I use 2 different methods of management. On EURUSD if the stop loss is

smaller then 2.5 pips then I'll sell off 20% of my position size at 4R to
cover risk and leave my stops open (for example my stop loss is 1.5 pips
at 6 pips in profit I'll sell off 20% of my position size, if I'm holding 10 lots
of EURUSD at 4 R I'll close 2 lots and leave 8 running) . If the stop loss
is bigger then 2.5 pips then I'll break even(move stop loss to entry) soon
as the first 1m supply or demand is broken.

#1 rule of trading is to protect our capital. Whichever way you

choose to manage just make sure risk is taken off the table as soon as
possible.

Continuations work more a lot more often then reversals. The trend
is your friend till it ends.

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 Putting It All Together

4H Bullish Trend In Discount

The execution time is hard to see here, but it is 8:45 am London time, within our
London Killzone time where volume is at its highest. Both 4H and 15M legs are in
discount. We're getting a great deal on our purchase. As investors we want a great
deal so we acquire the position in discount and sell it in premium for a profit.

The 15M completes a choch when it tapped into the 4H demand. We then pull the
15M demand that caused the 15M choch to complete, wait for a 1M choch and flip,
and then execute our trade. The weak 15M high would be our target. We are buying
pro 4H trend in discount and following expectational orderflow. Continuations
work alot more often then reversals. This is a 38RR Planned Trade.

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Putting It All Together

15M Timeframe

1M Execution Timeframe

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 Putting It All Together

15M Time frame TP Hit

The plan was followed, the trade was executed pro higher time frame trend.
This trade hit take profit by New York Killzone. It doesn't matter which killzone
you entered on, the narrative remains the same, put the idea together and
make a plan of how you're going to execute. You can partial out once or twice
if you need to. If you're looking to get paid sooner and have smaller trades
then target smaller timeframe weak highs/lows.

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 Putting It All Together
Example 2
4H

4H and Daily are both bearish in the example shown above, the higher
probability trade is to the sell of course.

From here we will go analyze the 15M chart and look for confluence to enter.
Our ideal setup is a 15M choch and flip turned into another choch or flip on the
1M. Something to keep in mind is if the 15M doesn't look clean, you will need to
cycle through time frames to show you a cleaner setup. The example below is
actually the 13M as it looked cleaner. Sometimes these timeframes will also
give us the extra confluences we need as well to get involved.

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Putting It All Together
Example 2
13M

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Putting It All Together
Example 2
1M

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 Putting It All Together
Example 2

Trades running to target

Trade 1 ran to the 15M target, for a 10R, trade 2 ran to the 4H target for a 24RR. Total
combined RR on these trades was 34RR.

Our in-house indicators backed our chochs and flips to give us extra confluence to our
already great trade plan! It can be this easy if we just wait for the right setups. If we
wait the market will come to us

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 Continuations
Entering on the next flip zone

Continuations work more often than reversals. A trending market has a

lot more pips to be caught with trend. Reversals don't happen all the time
and a lot of the time catching a reversal is compared to catching a falling
knife. A 15M choch is a good way to help you stay out of reversals, its
not guaranteed to succeed but its much higher probability then just taking
a counter trend choch on the 1m.

The biggest thing with continuations is a trending market doesn't always

return to the origin of the impulse so you have to enter on the leg where it
allows. I prefer the trending market return to a higher timeframe POI (10-
30M) then choch and flip again on the 1M. Sometimes the market is nice
enough to do that, other times you have to hop in the leg on 1M and ride
the wave. The risk for a loss can be higher if you're just hopping in any
1M bos. Ideally if you do hop in a leg you want to get in on the next flip
zone. The only way I choose to get involved is if I am close to origin of
the impulse. I'm ok with getting in on the 2nd or 3rd flip zone. I don't want
to keep following the leg down and keep trying to get in. If we're selling
we want to be in from the top. If we're buying we want to be buying from
the bottom. If you go too far up/down the leg you are in the middle of the
leg and probability is lower. I would rather sit the session out than force a
trade at poor pricing.

If you are going to be getting in on the leg further down then you want to
get in from a higher time frame POI. The poorer the pricing the lower the
probability, this is the risk we take, however in a live market sometimes
you have to improvise to try things. Nothing is guaranteed, it is a game of
probabilities. you have to assess the risk in front of you and decide if it is
worth getting involved or not. The higher the time frame backing your
trend the higher probability it is. The better pricing you have the higher
probability it is. Never forget that.

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 Continuations
Entering on the next flip zone
15M

In this particular example we are bearish on the 4H.

Our ideal setup is of course is taking a sell from the 15M supply
that flipped the 15M demand. Within that supply zone we would like
to see the 1M choch and flip and give us that entry on the cause of
the flip. However we don't always get to enter on the 1M choch and
flip because price just takes off without us. So we enter on the 2nd
or 3rd flip. Myself, I leave my order on the first zone and put an
order in on the second zone as well. If I have to take a loss on one
position for this trade to go I am ok with that because I know my RR
will cover my losses no problem. It is a calculated risk.

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 Continuations
Entering on the next flip zone
1M

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 Psychology
Re-wiring your brain for success

The first thing to understand about your psychology is most of your

habits are subconscious. In fact 95% of your life runs on autopilot based
on the habits your subconscious brain has programmed in it. That's why
kids that were surrounded by successful parents have a one up in life on
kids that didn't. Until the age of 7 our brain waves run in "theta" state,
those brain waves are much slower and are also known as the
download state, you can access your subconscious in this state start
rewiring your brain. It's the main reason kids learn things so fast.
Meditation can be used to access this state and start re wiring your
brain, however that's a whole book of its own. Don't worry if you're not
into meditation you're are not doomed there is a solution!

One of the ways we can create new habits is identify what the habits are
that we want to get rid of and replace them with new ones. Sounds
simple right? Well, it's not. The best way to reprogram your
subconscious mind is repetition. You do something enough times it will
become a habit. The important thing here is to create habits that are
profitable while cutting down habits that are not. Understanding the
technical analysis is important and you, you will learn to understand it
quicker than you will create new habits. It takes 60-90 days to create a
habit.

I view trading psychology as a mathematical equation. You have to work

within your limits. If you can only handle losing one loss a day then you
stop trading after one loss. Come back the next day. Eventually you will
be able to stay calmer longer and handle a lot more. One of the main
things people do is over leverage and over trade. Its a math problem
once again, if you cant handle the bigger %'s than cut your risk down
and maybe limit your self to 2-3 trades per day. You can always change
these rules as your psychology evolves.

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 Psychology
Re-wiring your brain for success

Everything in trading revolving around psychology is a math problem.

Once you come to terms with that you can create your own equation.
Everyone's brain is unique and has strengths and weaknesses, some
people will be better at certain things than you and that's ok, there's
nothing wrong with that. One of my mentors (who asked not to be
named) taught me that you should have multiple accounts and different
sizes. Large accounts will obviously be for your highest probability setups
and used most days.

However, what if you are having a bad week or 2 and lost confidence
and faith in yourself and need to regain some confidence? You go down
to a micro account, whatever a micro account may be to you that's what
you use. To give you an example that may let you gauge this, my mentor
would throw 80 lots on multiple gold positions, those were his normal
position sizes for most day trades. Whenever he had a bad week or
wanted a break from the stress and give his psychology a break he
would go down to a 500$ for a few days or a week. Until he felt better
and was able to go back to his big boy account.

This same technique can be used if you're trying something new out in a
live market. Obviously many of are you thinking you should try a demo
account to do that and you're not wrong. However what I found with a
demo account is its much like backtesting and it does absolutely nothing
for your psychology. This game is 80% psychology. I keep 3 main
accounts for this reason. Losing a demo trade means nothing to me.
Losing even 1$ of real money is enough to feel a little pain. We've
attached emotion to numbers and the colors red. But it needs to feel real
if you are to ever progress in this game. I'm not telling you that have to
use this method, it's just what one of my mentors taught me and it helped
me a lot.

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 Psychology
Re-wiring your brain for success

One of the biggest reasons people go to micro accounts is to rebuild

confidence. Confidence is linked to dopamine(the happy feel good
hormone), which is linked to in this case blue numbers. Cortisol (the
stress hormone) on the other hand is linked to red numbers. As a
society we've attached our worthiness to numbers, men especially. The
same way society has shaped females to feel good/bad about them
selves based on size or appearance. Unfortunately we all received this
programming at a young age so it stuck with us. As human beings we
are wired terribly to be traders, men especially, (in certain studies it has
been shown females are much better at risk management than men,
we are risk managers more than we are traders. This is likely why
women live longer than men too ;) )

When it comes to trading we need to have several tools in our arsenal

to combat this psychology. Another great tool I found is programming
my brain to understand that not every day is a trading day. Sometimes
it's not wise to be in the market and it is best to sit it out. You may miss
trades but you'll likely miss more losses than winners. The only way
you will ever get here is by actually being able to NOT TAKE A TRADE
that particular day price action was looking good. Remember habits
are created through repetition. Do the things you don't want to do until
they become a habits.

Cold showers were the start of me breaking down my brain and

teaching it that it was ok to be uncomfortable. Once your brains
understands it'll will need to go through you being uncomfortable it may
help your brain become more submissive to the changes you are trying
to create. Again it may not be the thing you want to do but you have to
do the things you don't like doing to get to where you want to get to.

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 Psychology
Re-wiring your brain for success

You have to have realistic expectations when you enter this game.
Putting any kind of timeline or % per week you are going to make is only
going to cost you to ruin your psychology. Some months are better than
others. I did 145R In 4 days this week. That's more than I did the
pervious 6 weeks combined. I know this isn't going to happen every
week.

If I put any kind of expectation on my next week of trading and try to do a

specific number, I'll likely just put unnecessary stress on myself more
than anything. The best thing we can do is not have any kind of
expectation and just follow our trade plan day in and day out. Trading is
systematic and can only become profitable if you have a system. This
same system will also help you build your psychology because you
become routine oriented.

If you tell yourself you need to make 20R per week ever week and its
Thursday and you are at 4R or maybe -3R on the week you'll likely start
doing stupid things to meet your goal. Disconnect yourself from any
expectational outcome. Sometimes the market is better than others, you
cannot have the same numbers every week.

When a hedge fund hires a floor trader they look at the quarterly and
yearly results. They don care what you did in a week or a month. Anyone
can have a bad weed or month. They want long term consistency. That is
how you have to build yourself. You're in it for the long haul. We are paid
to wait. We manage risk. We execute our edge over and over. We will be
successful through discipline and discipline alone. Just remember,
everyone will take different amounts of time to get there, you may get
there in 9 months, some one else may take 3 years. Everyone's situation
and psychology is different so don't put a time limit on something.

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 Psychology
Re-wiring your brain for success

You may think following a lot of traders and being on live calls
or in group chats is helping your trading. Its actually doing the
exact opposite, good trading is boring and should be done
alone. No social media, no video chats or chats of any kind. Its
not up to someone else to tell if you if your setup is valid. That's
your job. No one else's opinion matters. You'll likely just get
FOMO and start throwing trades on because others are doing
it. I would even go as far as to tell you to unfollow most people,
too many of them make too much noise. It'll likely just trigger
you.

You get better by creating an edge and testing it on your own.

Everyone views the market different. You can trade the exact
same system as some one else, look at the same chart, and
still see a different trade. That's totally fine, everyone is wired
different. Taking someone else trades or having them bless
yours will not help you at all. Only you yourself can do that for
you. It doesn't matter what some one else thinks, what do you
think?

This is the most important chapter in this whole PDF, put what I
briefly chatted about into action and find a solution that works
for you. If something is important enough you will find a way, if
not, you will find an excuse. I could literally write a whole book
on this topic, there is a lot to it. If there's one thing I can say you
to it is that consistency and hard work will out do talent and
intelligence 100% of the time. If you show up every day and you
put in the work you will get there. Trading is hardest easy way
to make money. Being broke is hard. Creating the habits to be
wealthy is hard. Choose your hard.

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 Psychology
Re-wiring your brain for success

One of the other things that may help is changing your candle colors to
something more subtle. The color red is the most visible color on the planet, it
also immediately elevates your heart rate and causes stress. You may not
feel it, but there's is a tiny bit there. There's a reason the lights are red, stop
signs are red and emergency vehicles use red lights. Some may not be
effected by this as much as others. Do your own testing.

I used to meditate quite a bit when I first started trading, I found it helped me a
lot. It may be something that could help you. Definitely not a practice I push
on people, but to some it could be of great benefit.

Some of the books I recommend reading to improve your psychology and

open up your mind a bit are:

- Outwitting The Devil

- Trading in the Zone
- Trading Beyond the Matrix
- Becoming Supernatural
- The Light Of Egypt
- Relentless
- The Hermettica
- The Psychology of Money
- The Kyballion
- The Compound Effect
- Tiny Habits

There is no one thing you can do to fix all psychology issues. You have to find
what works for you. As long as you are constantly improving things will
progress. It is important to continue pushing and improving everyday. 1%
better everyday compounding will add up. It's been done before by others, it
can be done by you.

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 Reaction points

Notice how aggressive the reaction point was. Seeing a V shaped

recovery can be the first sign of a reversal. Spot these early as they tap
into a POI. Notice the multiple failed reactions on the next page, these
can be a sign that supply is holding, confirmed by demands breaking,
you even get a choch and flip. Execute and follow trend. Reaction
points get way more advanced than this, for the sake of not confusing
people I'll leave it here with the basics!

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Reaction points

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 Checklist

Daily:
Structure
Premium/Discount
Daily isn't needed for intraday trading, we check this just to
see where the 4H trend is on it (Pro Daily or Counter Daily)

4H:
Structure
Premium/Discount
POI's (best ones made new structure)

15M
Structure
Premium/Discount
Swing Points
Unmitigated areas
POI's (best ones made new structure and have inducement
in tact)
Inducement
Liquidity
CHOCH

STRUCTURE IS KING
AND IS VALID UNTIL IT'S BROKEN WITH CANDLE BODY
CLOSE

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 Things that may improve your
performance in the markets
Many of us often over look the simplest things in life that effect our
performance. Lets the start with the simplest thing there is. Adequate sleep,
it is the absolute most crucial thing to perform well. This balances your
hormones, which allows your brain and body to run efficiently. This ranges
in the 6-8 hours per night for the average person, I sleep about 7 hours a
night.

The next part is hydration and diet. Most of us don't drink enough water in a
day. Water is the element of all life on the planet. Plants die without it.
Humans are made of mostly water, you need it to function well. Juices/Pop
that are full of sugar are not considered water. You are what you eat. If you
want to perform well you have to give your body a balanced diet. Not junk
food and pizza. Properly balanced diet, protein, healthy fats and carbs. You
can Google what a healthy diet looks like. These three things alone can let
you perform at a higher level. You need every edge you can get.

Your body also need exercise. Walking, running, strength training, hiking,
sports, whatever you may enjoy, you need to do it. Fresh air can do
wonders for your mind. Delegate your time to perform at your peak.

Just the way your body needs exercise, so does your mind. Read for 20
minutes a day. It'll keep you sharper while educating you at the same time.

The average CEO reads 52 books per year. The average employee reads
zero. Most CEO's eat a balanced diet and exercise. If you want to perform
like the high performers you need to copy the blueprint that been laid out in
front of you. If all of this sounds like a a lot of work to you, its because it is.
However once all of this becomes a habit it'll will no longer be an
inconvenience or even seem like effort. Build your business around your life
not the other way around. I'm sure by now you have realized trading is
business, run it like one. If you want to have things you've never had you
have to do things you have never done.

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 Looking to take your trading to the
next level?
Here's a sneak peak of thing's offered in our course and Premium Discord:

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 Looking to take your trading to the
next level?
Here's a sneak peak of thing's offered in our course and Premium Discord:

@PRECISIONMARKETSINC
 Looking to take your trading to the
next level?
Here's a sneak peak of thing's offered in our course and Premium Discord:

@PRECISIONMARKETSINC
 Looking to take your trading to the
next level?
If you join you will have:

- Full Course Access

- Full support from myself and our staff
- 2 Weekly Zoom Calls
- Chart Breakdowns
- Sunday Backtesting Sessions
- New content created weekly
- If something is not clear we will explain it and/or create extra content
- 3 in house Indicators : Precision Entry, Precision Chart RSI Divergence,
Precision Market Structure

Current content being developed and added in the next

few weeks:

-Supply and Demand swing trading - for those of you that can't be at the
charts because you have a 9-5 job

-Supply and Demand Crypto Trading

-Crypto Investing
-Staking
-NFT's
-Minting
-Mining

and so much more coming!

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 Looking to take your trading to the
next level?
Precision Market Structure Indicator - maps structure the way we
teach it

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 Looking to take your trading to the
next level?
Precision Entry & Precision Chart RSI Divergence
Fridays Dec 17/2021 Sells: I closed the first trade at 8RR to pay myself, the other
2 ran a combined 72RR. That's 80 R in one day. (shown to Instagram, Telegram
and Discord)
Our 3 of our Indicators supported sells on top of the content we teach you

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 Closing Comments

Kobe Bryant used to get up at 3AM to shoot hoops. Not because

he enjoyed doing it, because he knew that's what greatness took.
The only way we improve at anything is by practicing it. Take all
this knowledge and put it to the test. Backtest it over and over.
Even when you are winning, backtest it over and over. Eventually
things will start improving because you've programmed your brain
what to look for in a live market scenario. I recommend
backtesting on Tradingview and Soft4x. Both have their
advantages and disadvantages. Do both if you can.

The trend is your friend. Follow it.

This has been done by many others. It can be done by you, it just
requires discipline and the desire to want to be above average. It
wont be easy, but it will be worth it. Find the greatness within
yourself!

Take care!
- Rob

Inside my Instagram there are links for FREE YouTube

content, FREE Telegram and Discord. Get involved in all of
these to get a better understanding of Supply/Demand
Trading. I share charts and breakdown a wide variety of
trades in videos.

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