Batus e Book
Batus e Book
Batus e Book
http://fxpriceline.blogspot.my
Table of Contents
Thank you for visiting 3
The Strategy - HHLL 4
My simple little strategy 11
Topdown analysis 14
A little rules 18
The movement of price 19
How to draw supply & demand zone 26
How to draw a support & ressistance 31
Consumed & Engulfed 35
Freshness & Gap 38
3 movement pattern 43
A great setup 44
Oanda liquidity order 50
What is a touch trader ? 60
Time 66
Trade ideas #1 67
The 3S 69
Emotion in trading 72
How to control emotion in trading 73
Emotion control with Free Ride 74
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Thank you for visiting
15:33:00 Admin
First of all i wish to thank you for all of u that visit this website. And again as i said at the top of the
post, i am not doing any sales, affiliate or promotion on forex. Please do respect that this is a personal
blog for me that just to share my knowledge about supply & demand. So, do not ask for any coaching.
Nowadays there are many sites of company or individual conducting a various paid classes. I personally
had attend various paid classes regarding forex trading. Yes, some are knowledgeable but there is no
shortcut in mastering forex trading especially for new comers. Hence, i would like to share my
knowledge that helps me in my personal trading.
There is no holygrail in forex. You can keep digging it but the answer is no. What i do believe is risk
and reward before entering the trade. And yes there is a darkside for some of forex brokers that can
give u a headache.
Regarding the seller that selling a technique or indicators or e-book, do you think they will sell their
golden goose to you? Maybe the golden eggs is sold but not the goose. There are many way to success
in forex by earning a consistence income but it takes a lot of commitment & time...maybe a cash also.
I have several trading accounts with FxPro Financial Service Ltd. (FXPRO) & Dukascopy Bank SA
(DUKASCOPY).
For those that just wanna fast & furious trick to gain in forex, sorry this blog is not suitable for you. By
the way i will keep updating this blog regularly depends on my time.
You can explore my supply & demand method on the left side of this website.
Page 3 of 79
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The Strategy - HHLL
04:50:00 Admin
Before this i have explained about styles that is partial close . This is the system i have called it Higher
High Lower Low (HHLL). The strategy was working tremendously on trading. The other main point in
my trading is stoploss .. will describe it later. This strategy maybe called in other phrase like
quasimodo, up/under, over/above, crown or something else. You can call it whatever you like. For me
the name chosen as price making Higher High or Lower Low and then immediately making Lower Low
or Higher High. This was actually occur on reversal. On chart below, you can find a great benefit of it.
Ever heard about buy at low, sell at high? A free method is always being ignored and i admit that about
many years ago. But no worry as my intention only to help traders by describing free education.
Page 4 of 79
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9) If the line drawn is H & HH then find the Low point after High (H) & plot as Low (L)
10) If the line drawn is L & LL then find the High point after Low (L) & plot as High (H)
11) If the line is H & HH, wait for the price performing LL after break the L
12) If the line is L & LL, wait for the price performing HH after break the H
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Choosing target #1 or #2 :
If the distance between target #1 & #2 is wide, then you can choose target #2 & partial at target #1.
If the distance between target #1 & #2 is narrow, then just choose target #1.
Page 9 of 79
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Page 10 of 79
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My simple little strategy
07:48:00 Admin
Everybody have their own strategy either individual or institutional trader. As for me, there is No PA
Without Engulfing. Two kind of movement price usually do are Consuming or Engulfing .
If consumed occur it gave 2 signals either it will reverse or it will engulf. But engulfed on the other
hand tell us the price is concerning to go lower or higher to find a new base or liquidity. Therefore,
watch closely when price pullback & give the best shot by considering your risk to reward ratio.
Next is DP or Decision Point with a Great Imbalance. The best decision point is always at where the
price drop or hike with a great imbalance (significant move). This will always causing a gap. When the
price pullback..watch it carefully.
Page 11 of 79
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The other main factor is Freshness of the zone. My entry always on the fresh zone because there is a
liquidity there. Price will attract to the fresh zone because of liquidity.
This is generally my strategy & of course for other factor like timing etc will explain later.
Page 12 of 79
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Topdown analysis
05:36:00 Admin
Not everybody like to do this but i'm always do before any entry been made. Simplicity of analysis. I
did not rely on indicator for my analysis just sometimes use MACD to see a divergence. Topdown
give an information about the price. When the rule say sell at supply & buy that demand, obey the
rule. Start from big timeframe to the smallest you can get the idea.
Page 14 of 79
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A little rules
This is the golden rules that should apply in all trades :
1) Buy at demand
2) Sell at supply
3) Always look to the left
4) Always use stoploss
Page 18 of 79
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The movement of price
There are 3 movement that price does :
1) Move up - demand exceed supply = RALLY
2) Move down - supply exceed demand = DROP
3) sideway - supply equal to demand = BASE
Page 19 of 79
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A Base description :
1) Base is a low volatility area (small movement)
2) Base is a high liquidity area (many transactions order)
3) Base is a low spread area (spread low as huge transactions done)
4) Base is a balance area ( where buyers meet sellers / negotiations / sideway)
5) Base known as 4 :
- RBR (Rally-Base-Rally) Demand zone
- DBR (Drop-Base-Rally) Demand zone
- DBD (Drop-Base-Drop) Supply zone
- RBD (Rally-Base-Drop) Supply zone
Page 21 of 79
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Balance Versus Imbalance :
Balance = Low volatility, high liquidity, low spread
Imbalance = High volatility, low liquidity, high spread
Page 24 of 79
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During the formation of a base, we consider price to be in balance. This is because there is not a
significant difference in the amount of buy or sell orders in this area thus price doesnt rally or drop
as long as this balance exists. For price to start moving in a direction there needs to be more of one
type of order (buys or sells) than the other causing price to rally or to drop, it is at this point a base is
confirmed and a decision that price was either too cheap or too expensive has been made. When
price moves away from a base there are naturally unfilled orders which remain, so when price
returns to the base in the future we can expect the remaining orders to be triggered causing a
reaction in price. It is this what supply/demand traders try and take advantage.
Page 25 of 79
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How to draw supply & demand zone
There is subjective in drawing supply & demand zone. Subjective because it can be draw from body
to shadow or shadow to shadow. Here is the guide that been practice according to 6 conditions of
candlesticks:
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1) CANDLESTICKS WITH SMALL BODY
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3) CANDLESTICKS WITH MULTIPLE CANDLES
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5) CANDLESTICKS ON SINGLE OR MULTIPLE RBR
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7) FROM PREVIOUS HIGH/LOW SWING TO HIGHEST/LOWEST SWING
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How to draw a support & ressistance
Support & Ressistance that we draw are actually at a decision point made by price. Not by high or low
of the shadow. It's drawn at a body but only at a decision point. If a decision made is down then a line
drawn at a proximal line of the body up before. If a decision made is up then a line drawn at a proximal
line of the body down before. It was drawn for example : if the current move is up : draw a support &
ressistance of the previous move down. Then we can view how the price react to those support &
ressistance.
Page 31 of 79
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Consumed & Engulfed
Engulfed is a movement to supply or demand zone but did not break the zone. It is a movement to
fill the order in that supply or demand zone. If only shadow of candlesticks break the zone, it is still
consumed.
Consumed is a movement that break the supply or demand zone. It is a movement with strong
imbalance or with a weak imbalance to move to another base for liquidity. The body of candlesticks
should close below or above the zone.
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Freshness & Gap
What actually is a Fresh Zone?
Furthermore, a best fresh zone is when the zone is not the same level of any zone when we refer to
the left. Believe as it still remain an order awaiting to be execute.
A gap mentioned is not ordinary gap especially when it occur on the Monday trading day. It was a
dominan movement that happened when we saw a strong imbalance. It was either combination of all
sell or buy candle in lower time frame or a long candle on higher time frame.
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3 movement pattern
09:17:00 Admin
Price regularly make this 3 movement pattern. Spike or bank intervention is another things.
A shoot always have a middle gap & if this gap engulfed, the price usually went to base.
A stack always make price have to consumed step by step (like a trend)
A compress have 2 options either shoot up or down. Don't think that if compress down price will
shoot down. It may have another order in the opposite side.
Page 43 of 79
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A great setup
DIAMOND
QUASIMODO
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FAKEOUT
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DOJI
SWAP ZONE
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SUPPORT & RESSISTANCE
LIMIT
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COMPRESSION
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Oanda liquidity order
This broker has released their Open Orders & Open Positions order book for public.
The link for the site is here. Below is the chart explained what exactly it use for :
They have 2 orders enclosed that is Open Orders & Open Position. The Open Position is the current
open trades by Oanda clients that has been executed while Open Orders is the current pending orders
submitted or a stoploss placed by their client. We just interested in Open Orders.
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As for the Open Orders, it describe 4 type of orders we are using in trading forex that is a Sell Limit,
Buy Limit, Sell Stop & Buy Stop. Foreign exchange is an exchange of currencies, if we need to sell than
we also need a buyers in order to realize the exchange. Therefore, when we trading on brokers, our
sell order need a buyers for the order to execute.
1) SELL LIMIT is a pending Sell Limit orders or a Target for current buyers.
2) BUY STOP is a pending Buy Stop orders or a Stoploss for current sellers.
3) SELL STOP is a pending Sell Stop orders or a Stoploss for current buyers.
4) BUY LIMIT is a pending Buy Limit orders or a Target for current sellers.
Page 51 of 79
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A trade with Oanda Order Book :
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What is a touch trader ?
08:45:00 Admin
Somebody just don't really get what touch trader is. I trade at a very minimum stoploss with a huge
profit. There is a loss & i can't make all trade as a no loss trade. It takes a vital topdown analysis to
grant a precise entry. I can get a zero floating entry & thats the fact. A lot of practice needed until
one can adapt the style of touch trader. I mean a lot of drawings on supply & demand to find those
decision. I just post a simple chart on every post ...wonder why? I want everybody to learn by
thinking. I wont give a fish, i'd rather hand over some fishing rod.
A touch trade :
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The way i trade & NFP trade on 2nd September 2016 trade as below :
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Time
03:58:00 Admin
There is a time for trading and a time for not to trade. As i discover 6 time zone in a day as we refer
to 4 hour chart. We have 6 candles in a day chart. Start with Australia, Japan, Europe, Overlapping,
US & Pacific. Find those in 4 hour chart, the longest candle considered an active time to trade
depends on the pairs. Pacific time is not advisable to trade for every pairs.
Page 66 of 79
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Trade ideas #1
16:10:00 Admin
Short preferred as price reached a limit where a great imbalance occur at past. Stoploss is a must. A
fresh four demand below is my target.
A stoploss trigger .
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The 3S
11:01:00 Admin
1) System - such as technical , fundamental ,intermarket etc.. (used for entry purpose)
2) Style - such as martiangle, layers, hedge, partial etc.. (used to manage for those entry)
3) Stoploss (used to protect equity)
System & Style can be choose differently at any condition that suit the current situation.
The 3S applied for every entrance of market. Once the style applied (personally i use partial) then we
can look for other opportunity and much more benefit:
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Emotion in trading
04:14:00 Admin
Some great videos about emotion & mind of professional trader from Mark Douglas. Click the link
here.
Page 72 of 79
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How to control emotion in trading
12:10:00 Admin
It is a subjective topic but i conclude as what i have decide. The best i can do to control my emotion
is with a FREE RIDE . It was combination of partial close and stoploss. Explaination in detail. Click
Here.
Page 73 of 79
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Emotion control with Free Ride
Emotion is the main factor blowing in our head and can be disturbing. A one solution that we made
years ago is FREE RIDE. To overcome an emotion, it need an action. FREE RIDE is a combination of
Partial Close and Positive Stoploss. Yes we always greed in executing an entry. The FREE RIDE offers
you a great opportunity to re-entry as long the FREE RIDE is in the mode. Below is the rule of FREE
RIDE :
It offers you a freedom of trading. When FREE RIDE applied means a money already in your bank.
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Sample of result :
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Sample of trading with FREE RIDE :
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