
When we talk about trading currencies, metals, equities and futures, the market makers function as intermediaries, in buying and selling between two parties such as banks, hedge funds and other large financial institutions.
In the forex business someone must execute against you in order for there to be a business. One has to be either a winner or loser at settlement time.
These Market Makers take the other side of the traders trade and that is where instant execution and liquidity come from.
Market Makers control the direction of the market mainly on making money.
Therefore, as a retail trader you're dealt with through blocks of orders against the market markets' open volume and you are allowed to win or stopped out based on the market makers position in the marketplace (Delivered from Market Makers' holdings of Net Longs or Net Shorts).
The primary objective of the Market Makers is to make money by trading against you as a retail trader.
Market Makers create price movements to trap retail traders to take unfavorable positions, and they don't do that 24 hours a day, 5 days but the trap price movements will be used more at certain times as follows :
The beginning of the session (Quarterly)
The beginning of the week (Sun/Mon)
The beginning of the day
The beginning of the session (Daily)
The end of the session (Quarterly)
The end of the week (Friday)
The end of the day
The end of the session (Daily)
The Peak Formation or Anchor Point is where Market Makers start their move after trapping volume.
Anchor (Peak Formation) of weekly cycle can be identified as M/M pattern after 3 levels of Rise/Drop or Reset.
Anchor (Peak Formation) of Intraday Cycle which is seen clearly on 15M chart can be identified as M/W pattern at the High of the day (HOD) or Low of the Day (LOW). You need to know how to count levels, it is very important.
A Peak Reset can be referred to as a new peak that is formed in the direction of trend. Whenever two cycles are combined together the second peak is what is called a Peak Reset.
Levels Count is based on traders psychology, fear, greed and inexperience, and those are used as advantages to prey upon the traders. The Market Maker moves the price in a certain direction for 3 levels because of human psychology in nature.
Understanding the level count (what level you are in) will virtually eliminate all your technical analysis study time.
Again, StopHunt is a false move against Market Makers real intention to induce retail breakout traders to trade wrong direction and think irrationally by creating panic and fear through quick moves, spike candles, news, etc. This move will always reveal a reversal setup (W/M pattern) also, set High/Low of the week (Anchor Point).
There are three types of trade setups :
Peak Formation
Peak Reset
Safety Trade. We've talked about the numbers 1 and 2 in the list. Now we talk about what safety trade is. Safety trade presents itself after the level 1 consolidation, and it guides you not to trade against the peak.
The forex entry is the level of price at which a trader opens a position or a point at which a trader places buy or sell based on the market conditions. Every of our entry is on 15 Chart. After you are done with this class, you discover different entry confirmations.
When we talk about trading currencies, metals, equities and futures, the market makers function as intermediaries, in buying and selling between two parties such as banks, hedge funds and other large financial institutions.
After you finish this course you will understand what is market makers price cycle, forex market timing, price peak, peak reset, price levels and stop hunts, types of trades, entry confirmations and that will improve your forex trading up to 85% - 90% accuracy.