You are on page 1of 79

A Compilation from

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

Page 2 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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.

Thanks again & have a nice trade.

Page 3 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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.

How to draw the setup :


1) Identify current price.
2) Identify last swing high & last swing low
3) If the last swing is high then plot it as Higher High (HH) - upmove price
4) If the last swing is low then plot it as Lower Low (LL) - downmove price
5) If it was Higher High (HH) then plot the high before it as High (H)
6) If it was Lower Low (LL) then plot the low before it as Low (L)
7) Then draw the line on HH & H or LL & L
8) Now those line is supply zone (H to HH) or demand zone (L to LL)

Page 4 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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

How to trade the setup :


1) If price performing LL first then the setup is BUY
2) If price performing HH first then the setup is SELL

Buy entry & exit rule:


1) Buy at Low (L) - entry
2) Stoploss at Lower Low (LL) - exit loss
3) Target #1 at High (H) - exit profit
4) Target #2 at Higher High (HH) - exit profit

Sell entry & exit rule:


1) Sell at High (H) - entry
2) Stoploss at Higher High (HH) - exit loss
3) Target #1 at Low (L) - exit profit
4) Target #2 at Lower Low (LL) - exit profit

Below charts explained:

Page 5 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 6 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 7 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 8 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 10 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 13 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 15 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 16 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 17 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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

Each of the movement described as below :

Page 19 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 20 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 22 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 23 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Balance Versus Imbalance :
Balance = Low volatility, high liquidity, low spread
Imbalance = High volatility, low liquidity, high spread

Page 24 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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:

Page 26 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
1) CANDLESTICKS WITH SMALL BODY

2) CANDLESTICKS WITH WIDE BODY

Page 27 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
3) CANDLESTICKS WITH MULTIPLE CANDLES

4) CANDLESTICKS WITH DOJI OR PINBAR

Page 28 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
5) CANDLESTICKS ON SINGLE OR MULTIPLE RBR

6) CANDLESTICKS ON SINGLE OR MULTIPLE DBD

Page 29 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
7) FROM PREVIOUS HIGH/LOW SWING TO HIGHEST/LOWEST SWING

Page 30 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 32 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 33 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 34 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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.

Page 35 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 36 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 37 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Freshness & Gap
What actually is a Fresh Zone?

A fresh zone is an untouchable zone by price either from upside or downside.

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.

How to locate a Fresh Zone?

The easiest way to find it using a GAP method.

What is a GAP method?

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.

Below is an explanation about GAP method with combination of Fresh Zone :

Page 38 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 39 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 40 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 41 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 42 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
3 movement pattern
09:17:00 Admin

Price regularly make this 3 movement pattern. Spike or bank intervention is another things.

1) Shoot - strong/quick/sudden/wide gap


2) Stack - medium/moderate/expected/medium gap
3) Compress - weak/slow/manipulation/no gap

* please refer gap explained on page freshness & gap.

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.

A chart below explained :

Page 43 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
A great setup
DIAMOND

QUASIMODO

Page 44 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
FAKEOUT

Page 45 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
DOJI

SWAP ZONE

Page 46 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
SUPPORT & RESSISTANCE

LIMIT

Page 47 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
COMPRESSION

Page 48 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 49 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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.

1) Showing current Open Orders.


2) Showing current Open Positions.
3) Scrolled to view the past orders data.

Page 50 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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.

When we currently BUY, the orders known as BUY STOP orders.


When we currently SELL, the orders known as SELL STOP orders.
When we placed a SELL LIMIT, the orders known as BUY STOP orders.
When we placed a SELL STOPLOSS, the orders known as BUY STOP orders.
When we placed a BUY STOP, the orders known as SELL STOP orders.
When we placed a BUY STOPLOSS, the orders known as SELL STOP orders.

Now, we look at Oanda orders chart as below , current price is a border :

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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 52 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
A trade with Oanda Order Book :

Page 53 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 54 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 55 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 56 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 57 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 58 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 59 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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 :

Page 60 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
The way i trade & NFP trade on 2nd September 2016 trade as below :

Page 61 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 62 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 63 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 64 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 65 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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 .

Page 67 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 68 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
The 3S
11:01:00 Admin

3S is my priority when execute a trade. What is it?

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:

Page 69 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 70 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 71 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
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 :

1) Stoploss is a must for every trade


2) When the trade gain of minimum risk:reward 1:1 or 30 pips the FREE RIDE is applied.
3) Close partially for example volume 1.0 lot trade, you can close 0.50 lot.
4) Move stoploss to positive or +1 pips after the partial close.
5) Let the price move to the desired target or let it hit your stoploss.
6) You can open trade again after FREE RIDE applied.

It offers you a freedom of trading. When FREE RIDE applied means a money already in your bank.

Below is the step how to close partial :

Page 74 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 75 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Sample of result :

Page 76 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Sample of trading with FREE RIDE :

Page 77 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 78 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my
Page 79 of 79
Credit to original Author, Mr. Batus. Sources compiled from: http://fxpriceline.blogspot.my

You might also like