The facts are is that 95% of Traders lose money whether it be Forex whether it be stocks whether it be crypto currencies it really doesn't matter the overwhelming majority of Traders lose their money over time the question you need to be asking yourself especially as a newer Trader is this if 95% of Traders lose money over time wouldn't it make sense to do the complete opposite of what they do Shouldn't that result in the ultimate winning strategy that's a question worth exploring in 2019 I released a video called the Forex Master pattern that video to
this day has been seen by millions of people and it has helped countless Traders get on the right track to trading profitably in this video I'm going to go even deeper on those exact same Concepts and I'm going to teach you how to immediately turn your trading around in fact this one single video can Spare you years of lost time and money trying to learn how to trade it can also immediately make you profitable if you're willing to listen with an open mind my name is Wade Guth I own a trading technology company called trade
ATS I've been studying these exact Concepts that I'm going to teach you for over 12 years these Concepts have helped thousands of Traders around the world get they're trading on track in fact what I'm about to teach you is exactly What I would have wanted to be taught back when I first started trading if someone would have taught me these things it would have saved me so much pain and so much lost money when I first started my hopes is that by sharing these concepts with you that you will avoid that pain and you will
immediately get on track to being profitable first lesson the entire trading industry is set up to take your money from you you you need to do almost everything Opposite of what everyone else is doing to win so that begs a question what is everyone else doing simply put they're following a false narrative designed to separate them from their money Wall Street is a business if you're not studying exactly how they move money from other people's accounts into their own then likely you're the victim they're taking money from the first thing that most Traders think when
they get into this business is I need a good Technical trading strategy and it's easy to understand why they think that because when you get onto YouTube and you research trading of any kind you're going to see countless videos showing you how to create technical trading strategies there's literally hundreds of different indicators people use there's hundreds of different ways people draw technical lines on their charts but the question is is any of it actually good good I'm here to tell you that from my Own experience I went down every single rabbit hole that you can
go down when it comes to trading I downloaded the hundreds of indicators I spent countless hours back testing I spent thousands and thousands of dollars programming robots and let me save you some time right now traditional technical analysis indicators and robots will not get you there one of the first things that new Traders are taught is that the market moves in a series of repeatable patterns Now this can seem completely true on the surface and in fact a lot of these patterns do show themselves on the charts however these patterns can mask what's really going
on behind the scenes what the banks are actually doing here's your first big Revelation while those patterns May hold some validity sometimes there is an even more dominant pattern that operates behind those patterns behind the scenes and this pattern is actually a series of Three Market phases if you look at any chart you can see these three Market phases playing out in fact you can see these three Market phases in any Market you could see them on any time frame why do these three Market phases appear so consistently it's simple they're based on how the
banks move their money and they're based on how retail Traders lose their money that's what makes these patterns emerge is the fundamentals of what drives price action by Understanding these three Market phases this gives you the ability to predict the type of Market condition that will play out next that way you can prepare and take advantage of it most traders that don't understand how the market moves in phases and not patterns get caught in what we call the Traders losing cycle this typically starts with them coming up with some sort of new strategy this could
be an indicator-based strategy or this could Be a fundamentally based strategy it really doesn't matter what happens then is that they demo trade that strategy on a fake money account typically because it's fake money they get positive results because there's simply just not the emotion there uh as having real money then when they get positive results they go to real account trading after that now that they're trading real money it leads to losses inevitably then that leads to a loss of confidence which Leads to them abandoning that strategy which leads them to the feeling that
they need to tweak their settings or do more back testing which then leads to you guessed it a new strategy Traders will go around and around and around in this Loop for not only weeks not only months but years in fact I've personally coached traders that have been in this losing cycle for over 20 years and they never realized it now when Traders first learn that the market moves in phases Rather than patterns it's usually a huge Revelation I know it was for me but one of the questions they usually have is where did this
come from well I'm here to tell you that I didn't invent this in fact where this originated from was a man called Richard wof his teachings revolve around the idea that markets move in Cycles characterized by phases of accumul ulation markup distribution and markdown the explanations and the strategy you're going to learn here is My interpretation of Richard woffs original description of how markets work and what I've named that is the master pattern this name made sense to me it helped me simplify and understand these Market phases the master pattern is made up of again
the three Market phases number one is contraction number two is expans ion and number three is a profit taking or the trend phase these are the typical three phases as they play out most Traders are using traditional Average based indicators the problem with these indicators is that they mask the three Market phases an analogy I like to give regarding indicators is that if you use a lot of traditional indicators on your screen this can be like smearing mud across the lens of a camera it clouds the image you can't really see the truth of what
you're looking at and then when those indicators fail or the strategy doesn't work what do they do they tweak the Settings they change everything and all that means is that they're just rubbing the mud around you still can't see the clear picture of what's really happening behind the scenes so let's go deeper on the three Market phases phase number one is the contraction phase this represents confusion on higher time frames and the banks planning their next move phase number two is the expansion phase in this phase we have increasing institutional volume the range starts Opening
up taking out highs and lows smart money accumulates positions at discounted prices during this phase and phase number three is the trend phase this is where institutional Traders start taking their profits the market makes its move to higher or lower prices institutional Traders use other stop losses in fomo inspired liquidity to exit their position positions this is where most retail Traders make temporary profits so what does this all mean for You how do you use this to improve your trading well it's about your focus you need to focus on one thing to create a good
technical trading strategy your focus should be to accumulate the right inventory at the right price so that you can trade or distribute your inventory for a profit just like the banks do now I know you might be struggling to grasp these Concepts don't worry I'm going to give you a complete technical strategy with rules using the master pattern Methodology towards the end of this lesson but before we get there I need to share a few more things with you to really help you understand how to win in this market again if you want to win
in this business you need to have a deep understanding of what doesn't work and why most people lose their money so I'm going to share another rule with you it's called the 909090 rule this states that 90% of Traders will lose 90% of their account within 90 days this is an Industrywide standard metric that Brokers and institutions use they know that the average investor bringing their funds to the market to then actively trade with is going to result in roughly 90% of those Traders losing 90% of that account within 90 days the key is that
you want to be doing the opposite of what these 90% of Traders are doing now this 909090 rule is really powered by what I spoke of earlier the false narrative again what is the false Narrative this is widely taught ideologies and Frameworks of belief that teach the opposite of how to approach financial markets the false narrative will be people saying things like hey if you want more monthly income it's easy just buy my robot and watch the profits roll in you too can live a lavish lifestyle have complete time Freedom work from the beach and
drive a Ferrari all you have to do is buy my course and use this broker what they really want is They want you to deposit the most amount of money possible trade the biggest size possible and trade as frequently as possible why is this it's very simple more commissions more spreads more OTC gain for Brokers and introducing Brokers what's an introducing broker it's an affiliate it's someone who has a relationship with that broker and refers their client base to that broker and then gets a piece off of their commissions spreads and OTC Gain real Briefly
what is OTC gain or over-the-counter gain most non us-based Brokers offer what's called cfd trading instruments and what a cfd is it's a contract for difference and the gist of it is that when you deposit your money with that broker and you Trade A cfd Defined asset you create a contract with your broker alone it's not going to the live market so what happens is that when you win that trade the broker deposits the difference into your account for Your winnings if you lose that trade the broker takes your money and puts it into their
account now if Traders overall lose money 90 to 95% what kind of profitable business would it be to get traders to deposit deposit the most money that they can to trade the biggest size possible as frequently as possible how many of those Traders are going to blow their accounts and if they're trading cfds all that money is going to flow straight into the broker extremely Profitable business for the broker and the IBS that promote the Brokers you need to understand that there is a hierarchy of how the financial markets work and you're at the bottom
which can also actually be an advantage if you understand how this business business Works retail Traders are at the bottom with passive investors above them we have retail Brokers and IBS above them we have investment Banks above them we have market makers above them we have Inbank Brokers and then at the very top we have central banks and the private entities that own those central banks one of the best things about being a retail Trader and understanding how the game works is that you have the ability to get in and out of the market anytime
you want and none of the restrictions or liquidity problems that come with being an Institutional Trader it is the ultimate place to be if you have the correct understanding now I know I keep Coming back to this but it's so important that you understand this to get better results than the masses you must first understand why they lose and you must understand it on a deep level now it's time for your next big Revelation what is the purest biggest reason why Traders lose money you're going to learn that right now let's start with the concept
of feeling pain when you accidentally touch something hot what's your first reaction most People will immediately withdraw their hand to make the pain stop this is a natural human reaction we're born with it now let's think about the opposite when we feel pleasure or we feel something good whether it be emotionally or physically it's the same thing when something or someone makes you feel good good when do you actually want it to stop never you will take no action to make it stop if you can help it these are natural human experiences of pain And
pleasure now how does this relate to trading well losses equal pain nobody likes seeing their p&l in the red so when you see that you're losing money you have the same natural reaction to end the pain and close the trade you want the pain to stop pain demands immediate action action is what locks in your results pain gets you to press the button and close the trade whereas gains equal pleasure when you're in profit you have the same pleasure reaction to not Do anything and keep it going what happens when most Traders see a big
profit they want to see if it'll keep going how far can this go think about crypto Cycles when the market Market goes straight up Traders are getting in and they're seeing profits everybody's making money nobody wants it to stop but what always happens eventually it collapses and the mass majority of people never took their profits off the table when do they close the trade when They're in pain when they can't take it anymore so this is why it becomes so easy in fact it's our human nature to book losses and not take gains off the
table no one had to teach you this you were born with this as your natural intuition by understanding and having awareness to the principles of how pain and pleasure Drive human decision-making in the market this gives you the insights necessary to not only plan good trades but to monitor yourself while You're in your own trades and make sure that you are getting out when you feel good and also understand how to keep yourself out of being in too much pain from the beginning so let's take a brief look at an example of how this plays
out in the actual Market as the market moves down Traders naturally want to sell the market the red dotted line represents their pain threshold or where they will start to become out of the money and feel uncomfortable the purple P Circle Represents their extreme pleasure State this is where they're feeling great about their decision what we know about markets is that they range most of the time so in this situation it's going to be no different than most every other situation these gains are going to be shortlived so naturally the market reverses goes back up
through their pain threshold or their stop-loss level and stops them out with a loss now what happens Traders reverse their positions They buy the market they feel extreme pleasure at the top their stop- loss goes right below where they bought in naturally markets are still raging comes back down and takes them out closes another profitable trade with loss here the market goes again they buy they feel extreme pleasure at the top feeling great but what do they do they do not take decisive action to book the profits and then what happens the market comes back
and runs right through their Pain threshold stops him out with another loss here we keep going now the Traders are reversing their position again selling with their stop loss right above the high they feel pleasure as the market moves into the money but naturally they get stopped out again with a loss now they do it again selling the market feeling pleasure at the bottom feeling that this has got to be it this has got to be the one no it's not the market ranges most of the time They get stopped out again markets range 90%
of the time when you combine our natural pain response as humans with a constantly ranging Market you can see why it's so easy to book loss after loss after loss and why it's so hard to book a solid profit by understanding that the pain threshold of Traders is what causes them to predictably close their trades you start to understand how the banks can create opportunities for liquidity to fill their own positions by looking At the markets from this perspective this will become a huge advantage to you as a Trader now I've taught this concept about
how pain and pleasure Drive Traders decisions to exit the market to a lot of Traders and I've frequently been met with this response they'll tell me but wait my problem is I let my losses run forever and take no action to stop them so this pain and pleasure thing really doesn't apply to me what I found is that most traders that feel This way have become numb to the pain response they're so used to losing that they don't hardly even feel pain anymore and if that's you then you really need to understand this information my
goal is to get you on the Traders winning cycle that again starts with a new strategy that I'm teaching you right now then I want you to demo trade this and prove it out to yourself then I want you to see the positive results from it then I want you to go to real account trading When you experience wins this should lead to a boost of confidence but instead of abandoning your strategy and then tweaking the settings like other Traders are going to do in a losing Loop you're going to go to consistent execution you're
going to get more positive results which is going to lead to an even bigger boost of confidence which is going to lead to profitability and scale this is the path that I want you to be on at the end of this video so In order to make money trading you need to be able to predict with a high degree of probability where the market will go next the next question that we need to ask is who has the power to move the market this should be no surprise to most people but the banks the hedge
funds and the big institutions are the ones that have the ability to actually move price in fact 12 major Banks control roughly 75 to 80% of the Global Forex volume if we're speaking about the Forex Market here's a list of the least significant to the most significant banks that control the market these Banks particularly the ones towards the top of the scale have so much Market moving power that they can manipulate the markets at will Traders at these Banks talk with each other they can collaborate just do a quick Google search on Market rigging and
you'll see exactly what I'm talking about the banks regularly get fined for Market rigging And they write it off as the cost of doing business it's your job to understand how they're running their business so that you can spot their tactics and join in how they make their money so let's break down the two types of traders that you are directly competing against at the investment banks these Traders are market makers and proprietary Traders market makers serve a great purpose they create liquidity on demand market makers are The reason why you can click into a
trade anytime you want for roughly any size that you want they are always willing to take the other side of your trade or make a market for for you so they're going to process all customer trades one thing that you need to understand about market makers though is that they also are able to participate in proprietary trading they can trade their own account and take positions for speculation as well whereas proprietary Traders trade the bank's money for growth and profit their entire job is to speculate on price these are the two guys that you need
to have a deep understanding of how they think and how they run their trade business because again you are competing directly with these two types of Traders another extremely important thing that you need to be thinking about is how Banks need to trade in order to make a profit think about it as a retail Trader liquidity is Not a problem for you you're probably trading a relatively small size account compared to what the banks are trading whereas the banks are trying to make a return on billions if not hundreds of billions of dollars banks have
to accumulate their inventory over a period of time they need to build their positions and then in order to make a profit on it they then need to distribute that inventory over time the key here to understand is that it takes Time for a bank to make a profit and if you're going to understand and predict where the Market's likely to go you need to take time into consideration it's the bank's opportunity to make money is directly correlated with the time that they could accumulate and distribute their positions when it comes to Market making typically
the banks are going to employ automated algorithms to handle most of the short-term business that's going to be happening on the tick up to The five maybe the 15minute chart when we start getting above those time frames now we're going to be looking at what are they thinking about for proprietary trading how are they accumulating their positions how are they going to make money over that time span the facts are is that the volume and the liquidity that the banks need to make a return on their money is only going to happen over the course
of time and this is why you need to be keenly interested in the Higher time frames and where they're headed those higher time frames including the 4our the daily the weekly and the monthly represent the bank's intention Banks don't care about traditional technical analysis they don't care what the RSI says and they don't care about the last time the macd crossed they care about two things that's liquidity to get in and liquidity to get out and what they're more importantly interested in is how to Engineer liquidity to get in and liquidity to get out they
leave nothing to chance and if the banks are going to leave nothing to chance then we have to have an even deeper understanding of how liquidity is engineered and that comes down to people buying and selling the banks always start their process from a neutral belief Zone we also call that the contraction phase of the market then what happens is that as they let the market break out dumb money comes in in This example we could see that they're selling when dumb money sells smart money buys then what happens is that as the market keeps
moving fomo sets in Dum money aggressively starts to sell the market smart money aggressively buys because there's now opportunity to do that and then what happens the market moves against all those Dum money Sellers and runs their stop losses and this creates liquidity for profit taking for the banks everything that you need To be thinking about is how the banks are engineering liquidity to get in and liquidity to get out this is the only thing that you need to be concerned with as a Trader when they're getting in you're getting in when they're getting out
you're getting out smart money needs dumb money to exist let's take a brief look at another example in this situation we have our contraction phase in this stage of the market retail Traders or Dum Money traders in general Are going to be confused they don't know what's going to happen whether the Market's going to go up or go down when the market breaks out to the upside it's going to inspire buying from dumb Money traders that's also going to come with their corresponding pain threshold or stop loss level what does this create for the banks
and market makers it creates opportunity to harvest liquidity how do they do that they easily mark down the price right Down through that stop-loss level that creates an opportunity for them to buy up those stop losses and then what happens they drive the market right back up where the retail or the Dum Money traders originally thought it was going then those same exact Traders get in and buy the market again and who sells to them it's the market makers and the bank's proprietary Traders they sell for a profit the inventory they accumulated at that low
price right back to the Traders that they took it from and the cycle goes round and round now we're going to get into General Master pattern strategy and how you can use everything that I've been teaching you up until this point to make a profit let's start with understanding what we call fair market value this is again going back to the contraction phase of the market when you identify this neutral zone you're identifying a fair value price this neutral zone or fair market value shows Us a place where buyers and sellers have agreed upon price
that's why we can confidently call it fair market value now fair market value defines our average price which we also call The Tipping Point of belief now above average price you're going to have dumb money buying the market and smart money is going to be doing the opposite of that they're going to be selling the market below average price you're going to have dumb money selling the market And smart money buying understanding fair market value gives you the ability to accurately judge whether a market is truly overbought or oversold from the bank's perspective remember they're
trying to accumulate discounted inventory and sell it at a premium this model gives you the ability to see the markets as they see them so how do we put a strategy to this well we start with what's called a directional bias and a directional bias is going to Come from a higher time frame chart that you've established that's going to control your decisions as to whether you're either buying or selling at any given time in our example here we have a daily chart which is going to be our directional bias we could clearly see it's
going up so as long as the daily is going up we are only looking to buy the market so how do we apply the master pattern to our daily directional bias we establish fair market value and and we Know that we are only going to be buying the market we are going to be looking to buy undervalued and sell above value very simply why do we want to do this because it's exactly how the banks need to trade to accumulate and distribute and make a profit as the market continues to go up we continually map
out fair market value we buy under value and we sell above value it's very simple the model does not need to be complicated past This all right so now I'm going to teach you the exact Master pattern strategy that you can apply to your trading right now but like any other strategy there's rules and there's best practices there's guidelines to follow so the rules we're going to be talking about are in two different areas we have technical rules which is what most every Trader already is familiar with they always coming up with some sort of
rules to govern how they interact with their strategy but Then there's also life rules and we want to start on that note so right here we're we need to talk about your situation so when we're talking about your situation this is the realities of the amount of time that you have to invest in your trading and also the amount of finances that you have to invest in your trading we need to get real here and we it's okay whatever your situation is but we need to design the strategy around your situation so you Don't get
in a bad spot okay so we're going to be talking about your time and your financials okay so when it comes to time you need to take an honest appraisal of the amount of time that you have to invest in your trading okay uh do you have other responsibilities you know do you have young kids that you need to pick up from school in the middle of the trading session things like that do you have a work schedule that you have to go to that would Interfere with active trading that's something you need to think
about um or maybe you're retired maybe you can just sit around and look at charts all day what you need to understand about this is that the time frames that you pick to trade that you specialize in which we'll get to in a minute those time frames need to accommodate for what the realities of your schedule are at this moment and so if you're working an active job that gets in the way of the Trading session that you're trading let's say if it's Forex you want to trade through London in New York that's the highest
volatility time if you are working a job that does not allow you to be present during that time then you're pretty much going to want to rule out all lower time frames you're pretty much not going to want to trade anything below a 4our chart for your entry time frame now if you're retired then you have the ability to trade through the The majority of the best parts of the session without any Interruption then you could look at a five or a 15 minute or a 30 minute chart and no problem uh and you could
try your hand with that although I do recommend most Traders go to the higher time frames just as a default just just my my own experience working with a lot of people but if you are going to try active trading you want to trade those over time frames make sure that you can be present there's Nothing that will blow your account quicker than trying to trade actively using your phone while you're driving to work and your mind is elsewhere what'll end up happening is that you'll be no good at your job because your mind will
be on the market and you'll be no good as a Trader as well because you need to be working at your job you need to make a clear separation okay doesn't mean that you can't trade while you're working these other jobs it just means You need to move up to higher time frames because it's slower when it comes to critical decision making so just got to be real with that all right and your financial situation you need to be real with this as well are you living paycheck to paycheck if you are it's okay I
was there once too I feel the pain all right if you're living paycheck to paycheck then you need to question whether you even want to get into this business quite honestly okay if you are Taking grocery money and putting it into a trading account I'm telling you right now that that's very likely not to end well I want you to be a Trader I want you to pursue pursue your dreams of doing this but I don't want you to do it at the cost of it being devastating to you and your family okay just wait
till you get a little bit more room work at your job harder and get yourself some room okay but if you got a little bit of money in the bank and you're a little Bit more comfortable then you know that's going to put you in a better spot okay if you are wealthy let's say that you have you've done well in life and you got money in the bank then you know that's fine you're you're probably in the best situation the more loose you are with your current financials the better possibility you have of being
a successful Trader when you're living paycheck to paycheck you're highly likely to fall into desperation Whereas somebody that is trading with money that they really it's it's extra it's not going to make or break their situation they have an immediate mental Advantage so just understand that's what we're dealing with so leading off the conversation around your finances there are things that you can do to lighten the load for yourself and also increase your probability of being able to actually make a meaningful amount of money and that comes in the form of prop Funding now some
of you might have a bad taste in your mouth when it comes to prop funding I get it uh the services aren't perfect okay but I've been doing this a long time even before prop funding was even even a thing and you had to Pony up your own cash and let me tell you the overall net positive of prop funding is wonderful for Traders so let me explain all right if you have when I'm just going to take our prop firm with our Partnership right now and again you do not need to use our prop
firm okay I don't care go find one that you trust and works out okay I just want you to understand the resources and how they work okay when it comes to ours we have a $1,000 will buy you a $100,000 prop account it'll it'll buy you an evaluation and potentially get you access to $100,000 in capital we have different sizes that come with that but I'm going to use this one because it's Easy okay with that you pay the ,000 you get a $100,000 demo account and in that account you have a $6,000 Max draw
down from the high water mark of the account so if you go down to 94,000 from 100,000 that's where the account would be taken away from you and you would fail and you would lose $1,000 that's how it works however if you hit a $10,000 profit Target or a 10% profit Target you will be rewarded with a real $100,000 account okay here's where this becomes Significant and this is what I really want to drive home okay most retail Traders have been taught that you can take a really small amount of money and turn that into
a really huge amount of money uh I'm I don't want to burst your bubble but that happens for almost nobody I don't care what the other social media influencers show you online it's very unrealistic and my message is to get the majority of people to see some level of success I'm not looking For unicorns so I want to take the normal regular person and teach them a method that they can make consistent progress with so here's the difference the retail trading mentality says take your last, and gamble it in the market Mark and hopefully you
could make a huge return but the facts are if you do 3% a month let's say 3% a month that is considered a very respectable return not in retail trading fairy tale Lambs That's that's very not good but in the reality on Wall Street with real Traders and real people this is considered very good okay the difference is when you're in retail trading mentality that 3% for very safe good trading only equals $30 that's not very good you can't even go out to eat with that let alone pay a bill okay the difference is if
you take the time to do this you could take the same thousand apply good trading we don't want you to blow through prop firm Challenges that's no good either you take your time you do it you do it slowly you trade the right way then you get access to the $100,000 Capital you're actually leveraging your money six times because really the account is what you can lose it's $6,000 so you're still getting six times your money by spending the time to go through this process and if you make 3% a month on a $100,000 account
that equals $3,000 a month and you could do that relatively Safely okay and then the accounts go up from there you could get a 250 or 500,000 and then it uh it magnifies from there but the point is is that the retail Trader you need to do everything opposite of that mentality okay Wall Street raises money they raise money so that they could take less risk so they can make a amount of money that's meaningful to them this is not meaningful to anybody this starts to become meaningful for real everyday People and that's the power
of leveraging other people's money so I'm not going to sell you hard on the prop firm I just want you to understand the resources that are that are there they're there to take advantage of and if you go through this process this takes the pressure from trying to turn a little minuscule amount of money that you're probably worried about Los and leveraging other people's money the same way the banks do we're trying to Copy their model in every single aspect here's your next guideline which is to specialize in a specific type of market and what
I mean by that is that you're going to pick one symbol to trade to become an expert at now I know a lot of Traders immediately think like what about all the opportunity if I'm trading one thing what about all the other setups and all the other things hear me out okay what I know after working with a lot of people and my own experience is That trying to trade a bunch of different things at once is like juggling a bunch of different businesses you ever known someone that's like always starting a bunch of different
businesses and they're not good at any of them well it's similar in the markets okay you're competing against highly specialized people that are literally specializing in running that market a market maker is in charge of running EUR USD along other market makers that work For other Banks but that's their job they watch Euro doll proprietary Trader is designated to watch euro dollar maximize profits that's who you're competing against so to think that you could dip in and out of a bunch of different things and spread yourself that thin would be kidding yourself you're trading against
people that know the heartbeat on an intimate level of that symbol because they run it and you need to run it just like them so you Need to pick one whether it's going to be Forex stocks Commodities indices Metals crypto just some of the major ones right the only difference with this would be stocks because stocks you can chase around pump and dump plays and things like that so it's a little bit different there but any Market that has a lot of energy meaning a lot of willing buyers and sellers all the time which is
going to be major stocks uh Commodities indices Metals crypto Forex so Especially like any one of those that has a lot of volume on a daily basis is going to be a good one to specialize you just need to pick what's your favorite market so when you pick one of these markets let's say you pick Forex which is the most popular if you pick Forex you want to narrow down to one symbol what is that symbol that you're going to specialize in maybe it's one associated with the country that you live in I know we're
here in the US we Have a lot of traders that literally specialize in EUR USD that's it one market and they are there for all the opportunity they're going to miss some they're going to have some losses but they are definitely going to be there for the big moves and so it comes down to being a game of maximizing opportunity being able to go relatively heavy because you're intimately acquainted with that specific symbol so decide what it is that you want to trade And give it a minimum of 3 to six months on that symbol
before you move on just make sure you give it a fair shot the next thing you're want to do is pick the time frames that you're going to special speci in so just like picking the market and the symbol that you're going to specialize in you want to pick a specific set of time frames that you're going to get really really good at and this becomes an edge over time because you're getting really intimately Acquainted with that market and with those time frames so here's the different pairings that I recommend based on experience so we
start on the lower time frames if you're going to try your hand at active trading I don't recommend it for most people but if you got to try it here's where you'd want to start you want to start with a f minute chart and that pairs well with the hour and the 4 Hour as your directional bias so meaning this is controlling which Direction you're trading at any given time the second one moving up from that is a 15 minute which pairs well with the 4our and the daily the 30 minute really pairs best with
the daily in my experience I've done this with the daily and the weekly I've gone back and forth daily is my favorite I just think it's a little better uh the next one up from that is going to be the 1 hour into the daily or the weekly works well the 4 Hour works well into the week l or the Monthly and the daily obviously is going to go to the monthly that's pretty much at the highest end of the spectrum of time frames so you want to pick one of these and when you're picking
remember keep in mind your situation if you're working an active job or you have a lot of responsibilities is this a good choice no this is not a good choice whatever one of these that you pick you want to make sure that you can monitor the the chart or look at it ideally once Per period so if you're looking at hour at an hour you want to be able to get on your computer your laptop or whatever and see what's happened every hour ideally or if you're if that's unrealistic for you based on your situation
you may want to move up to a 4H hour and a daily we have 4our traders that do very well they do better most of them do better than the fivem Minute Trader and it's because the five minute is much harder to trade the decisions Are coming at you very fast you have to be able to make decisions very quickly whereas a 4 hour you can look at it on a 4 hour by4 hour basis and it gives you time to think about it gives you time to digest what's happened and also too the five
minute guys are trying to take those 30 40 pip runs out of euro dollar out of you know name your pair they're trying to get the same moves whereas if you're trading a 4H hour by default you usually lock in those big moves much Easier because you're not looking to get out or make a decision every 5 minutes so most of the people that end up on this side right here I would say from 30 minute over are going to have an overall net positive experience so I would highly recommend that you go over here
try your hand over here but if you're not getting this within like three to six months go that way you'll save yourself a lot of a lot of pain trying to mess with lower time frames so now It's time to define a technical strategy and this is going to be based on the time frame pairings that you previously selected so whichever time frame pairing that was the first thing you want to do is look at your higher time frame directional bias and interpret where it is in the cycle so we'll start right here so here's
your higher time frame directional bias you want to decide whether it's in the contraction phase the expansion phase or the profit taking Phase okay once you to the best of your ability classify what that activity is doing then you want to interact with it accordingly and pretty much you do not want to do any trading until you're out of phase one so right here when you see those expansion legs happening you see that breakout this right here is where you want to start looking to get involved now as we trade below average price you want
your directional bias to be short and as we trade above average Price or coming back at average price you want to be long on your directional bias and what you're ideally looking for is you're looking for the profit taking phase on your higher time frame because this is going to be the easiest money that you'll ever make because guess what if you're higher time frame is in the third Market phase your lower time frame becomes extremely easy and you can be very confident what you do over there so ideally you want to find this but
you Definitely don't want to trade until you're in a minimum of phase two so moving over to our entry time frame again very simple the three Market phases plays out on all time frames so if we judge this part of the market accurately and we're pretty confident we're in the profit Zone guess what the future of every single one of these contraction phases is it's to the upside that's it's going one way and that's it so every single one of these can be Pullbacks in this trend you want to Define fair market value again don't
want to trade there you want to trade in phase two ideally undervalued and you want to trade it up through value and you want to take your profits above value in the uptrend and this would be reversed if this was in a down Trend it be the exact opposite so you want to do that again right here you have your fair market value you wait for the expansion phase you trade under value just like The banks want to do they want to accumulate inventory at a discount price and then they want to distribute that inventory
for a profit above value just like we see here now a lot of people ask well how do I monitor my risk the awesome thing about defining fair market value is that you have a static line that does not change once it once it's there does not change and the farther you pull away from that line you can measure out your risk reward ratio for Instance if you entered right here you could measure the exact amount of Pips or points back to fair market value and get a one: one risk reward ratio just by projecting
down from that it's a very basic way to do it but you can start with a one: one not that that's great or anything but it's a good place to start but here's the thing is that's just coming back to Value if this is a really strong Trend you'll get through value and you could get a huge multiple of Your initial risk the point is to get to value and then protect your risk right there lock it in that's really as close to the Holy Grail as you can get as far as I found if
you know something better hook me up let me know all right so this is your basic strategy in a nutshell there are nuances and things you need to get familiar with but in a nutshell keep it simple like this is this is pretty much the best price action strategy that I've seen for helping new Traders get Off to a good start and the best thing is is that everything you see here is well founded inside the principles of what actually drives markets there's no indicators I'm not saying oh this setting works good here and then
this indicator helps with the entry this is pure price action that's it it's the truth of what's happening in the market we are not overlaying or like I said before smearing any mud on what the realities of the market are we are Identifying the reality and we are adapting to what the market says to adapt to another big question I get when I teach people this methodology is how do you find fair market value that's the big question and this does not need to be over complicated okay this is how you do it you look
for a move okay the move could go up it could go down doesn't matter look for where the market moved then you want to look for where it stopped okay that's what we know based On three Market phases we had the third phase that's the movement where it's stopped should be phase one again it's always phase one phase two phase three phase one phase two phase three and so on so here's phase three there's phase one at the very beginning of that stop and what you're looking for is you're looking for a compression of price
you want to see that buyers aren't really kicking in and sellers aren't kicking in either that's where price has been Agreed upon by buyers and sellers at least temporarily that is a fair market value it needs not be any more complicated than that and a lot of people get confused like well what if it moves a little bit and what if I is there might be a box here it might be a box there forget it just go off that one that fair market value will hold significant until you get a movement or you get
displacement that's when you draw another box is when you see this Fair market value you've gone through expansion it's done whatever it does here and you see the displacement away above or below when you see that displacement you see the third phase then you could start tracking the next origination Point that's it it needs to not be any more complicated than that if you can Define one fair market value in a Range that will be enough to act as a good Pivot Point to base your entries and exits in your trade management off Of it
doesn't need to be more complicated than that so the next thing Traders wonder about when they're learning this method is how do I work this around news events how am I going to trade the news with this well number one you really shouldn't trade at the news event uh that's just you know if you're Welling the money on a trade fine but if you're getting in a new trade best to let the news hit and then see what happens but okay how do you deal With the news well you need to go back to the
fundamentals what we were talking about everything's from the bank's perspective what does the bank care about does the bank care about the news number well maybe slightly but they've mostly already planned on what the number is going to be they already pretty much know and have factor that or bake that in what the bank really cares about is energy coming into the market why energy creates volume lots of Willing buyers and sellers lots of opportunity to accumulate inventory and potentially distribute inventory so news is energy means players are coming to the market so what you
need to know about news is that it does not change the three Market phases all it does is that without news the market phases play out it just takes it's a little bit slower that's it with news same thing it's faster if you're going to be in a trade during news here's my rule of Thumb if you are in a longer time frame trade and you're already significantly in profit and the news is about to come out then you could kind of roll the dice on that because it very well may go in your favor
that's that's fine it's up to you to decide what you want to do if you are actively trading or you're a day trader and you're not in a trade yet and news is coming up it's about to come out and you feel inclined to trade at the news event or right before that's Typically a bad idea okay you want to really avoid the news announcement you want to let it hit and you want to let that information digest you want to look at the legs of expansion because that's typically what's happening in the market when
news comes out you want to judge this area right here and then you want to make your choice as far as how you're going to trade it you never want to be at a break even or no trade in and then be in before that happens because that Is a recipe for disaster and I don't want you to have to pay that price and that's it that wraps up the basics of the master pattern strategy I hope this information has been eye opening to you but also I want to invite you again to go check
out our Master pattern Academy course it's completely free all you got to do is put in your email it's 8 plus hours of content that goes deep on this strategy everything that you're wondering or Could Be Wondering gets Answered in that course so make sure you take the opportunity go to the link in the description and enroll in that free course I can't emphasize it enough so that all being said again I want to thank you for watching the master pattern video and learning this methodology and I hope that these insights you've learned today are
going to significant canly help your trading going forward
