DP FO
1by1 SR Fakeout.
QML/WBS. FO Location: End.
The DP is in the form of a QML. FO Distance: Standard.
The QML is not perfectly General
aligned with the WBS but The price respected the
QML and dropped until
almost aligned with it. reaching the OTM zone.
CMF Research Think like an institutional trader 101
DP FO
1by1 SR flip Fakeout.
QML/HB. FO Location: Beginning.
The DP is aligned with an HB. FO Distance: Standard.
The hidden base might not be
visible to the untrained eye. General
The QML was respected by
price on FTB and dropped
towards the OTM zone.
CMF Research Think like an institutional trader 102
DP
CCC-QML/BE.
There is a CCC-QML that has an
additional BE confluence.
FO
The FO is in the form of a
1by1 SR flip FO.
FO Distance: Below
Average.
CMF Research Think like an institutional trader The price managed to respect the
decision point of interest and went
on to hit OTM.
103
DP
QML/HB.
The QML is aligned with an HB.
FO
1by1 SR flip FO.
FO Location: End.
FO Distance: Average.
CMF Research Think like an institutional trader The price managed to respect the
QML and went northwards until
reaching the OTM zone.
104
DP FO
1by1 SR Fakeout. The
There is a QML aligned with a Fakeout is also known as FO
Bearish Engulfing candle
at the middle.
pattern. The price came back to FO Distance: Average.
the QML immediately before
creating the FO. This might General
have weakened the decision The OTM has a CO status.
point. This made it easier for the
price to go past the OTM
zone.
CMF Research Think like an institutional trader 105
DP
QML/FL/DJ.
The QML is associated with a flag
limit and a Doji.
FO
1by1 SR flip FO.
FO Location: Beginning.
FO Location: Average.
The distance between QML and the
SR line is quite huge. In this regard,
The SR line can be used as TG1
and OTM as TG2.
CMF Research Think like an institutional trader 106
DP FO
1by1 SR Fakeout.
CCC-QML. FO Location: Middle.
The DP is in the form of a CCC- FO Distance: Average.
QML. The decision point is General
classified as strong because The price did a touch trade
it incorporates a significant
to the CCC-QML.
support and resistance. Thereafter, the price
dropped until reaching the
CMF Research Think like an institutional trader OTM zone. Additionally, the
price managed to go
beyond the OTM zone.
107
DP FO
1by1 SR Fakeout.
D-QML. FO Location: End.
The decision point in the form FO Distance: Standard.
of a double QML. There is no
other extra confluence for this General
The price respected the DP
DP. on FTB and went on to fill
the range until reaching the
OTM target.
CMF Research Think like an institutional trader 108
DP
QML/DJ.
The QML is aligned with a DJ.
FO
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
The price managed to respect the
QML and dropped towards the OTM
zone.
CMF Research Think like an institutional trader 109
DP FO
1by1 SR Fakeout.
QML/FL/BE. FO Location: Beginning.
There is a QML with a flag limit FO Distance: Average.
associate. Inside the flag limit
General
area, there is a bearish Generally, if a QML is
engulfing candle pattern. associated with an FL. The
SL should be put above the
CMF Research Think like an institutional trader FL. In this chart example,
the distance between the
QML and the apex of the
Head is quite huge. Hence,
putting the SL above the FL
will lower the risk.
110
DP FO
1by1 SR Fakeout.
QML/WBS. FO Location: End.
The QML is a separator of the FO Distance: Average.
wicks and candle bodies. This
makes the decision point strong. General
The trade was a success.
The price managed to hit
the OTM zone.
CMF Research Think like an institutional trader 111
DP
QML/WBS.
The QML is a separator of the wicks
and body of Head candles.
FO
The FO is in the form of a
1by1 SR flip FO.
FO Location: End.
FO Distance: Standard.
The QML was respected by price to
the pip. Thereafter, the price went on
to hit the OTM zone.
CMF Research Think like an institutional trader 112
DP
QML/FL/BE.
The QML is associated with an FL.
Inside the FL there is a bearish
engulfing candle pattern.
FO
The FO is in the form of a
1by1 SR flip FO. The FO
occurred outside the flag
limit.
CMF Research Think like an institutional trader DP
A decision point with a combination
of a QML/FL/BE is considered to be
very strong.
113
DP
QML/WBS.
The QML is associated with a WBS.
FO
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Standard.
CMF Research Think like an institutional trader The SL can be placed above the
WBS. The price compressed
towards the DP and dropped until
hitting OTM.
114
DP FO
1by1 SR Fakeout.
The decision point is almost like FO Location: Middle.
an MW-QML but it is not FO Distance: Average.
perfectly aligned.
General
CMF Research Think like an institutional trader TG1 can be placed at the
SR line and TG2 at the
OTM zone since the
distance between the SR
line and the entry line is
huge.
115
DP FO
1by1 SR Fakeout.
QML/DJ. FO Location: Beginning.
The QML is aligned with a Doji. FO Distance: Average.
However, the DJ is not in the General
form of a flag limit. The distance between the
CMF Research Think like an institutional trader QML and the SR line is
wide. In this regard, the SR
line can be used as TG1
whereas the OTM can be
used as TG2.
116
DP FO
1by1 SR Fakeout.
QML/DJ/FL. FO Location: Beginning.
The QML is associated with a FO Distance: Average.
DJ-FL. A decision point with
three confluences is classified General
The price managed to
as very strong. respect the decision point of
interest and went on to hit
the OTM target.
CMF Research Think like an institutional trader 117
DP FO
1by1 SR Fakeout.
The QML has no extra FO Location: Beginning.
confluences. Prior to the FO Distance: Average.
creation of an FO, the price
came back to the QML which General
might have weakened the The zone of interest was
respected by price although
decision point. the price did not react to the
pip.
CMF Research Think like an institutional trader 118
DP FO
1by1 SR Fakeout.
QML/WBS/FL. FO Location: Middle.
The QML is associated with a FO Distance: Below Average.
flag limit which was not drawn
in this case. There is also an General
extra confluence of a wick-body The distance between the
separator. QML and the SR line is
classified as below average.
This might be considered a
weakness.
CMF Research Think like an institutional trader 119
DP
The QML in this setup has no
additional confirmation. The QML
was drawn on the body, not the wick,
which is not the ideal scenario.
Hence, this trade might have been
missed since it did not reach the
apex of the QML.
CMF Research Think like an institutional trader FO
1by1 SR flip FO. FO Location: End.
FO Distance: Standard.
The target has not yet been hit by
the time the price created an FO.
This caused this zone to be more
attractive. The price managed to
respect the decision point of interest
and went on to hit the OTM target.
120
DP FO
1by1 SR Fakeout.
QML/FL/DJ. FO Location: Beginning.
There were two possible QMLs FO Distance: Average.
in this setup. This QML was General
chosen over the other because The DP was respected by
it was aligned with a Doji flag price on FTB. The price
dropped thereafter towards
limit.
OTM target.
CMF Research Think like an institutional trader 121
DP
QML/BE.
The QML is perfectly aligned with a
bearish engulfing candlestick pattern.
FO
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader The combination of a QML and BE is
strong. After the price has made an
FO PA, the price visited the DP and
was respected. The target had not
yet been hit, hence, the price
manage to hit the OTM zone.
122
DP FO
1by1 SR Fakeout.
QML/MM. FO Location: End.
The QML has an MM additional FO Distance: Average.
confluence. General
There is a huge distance
CMF Research Think like an institutional trader between the QML and the
SR line. It will be wise to
take the initial profit along
the SR line and the second
profit at the OTM zone.
123
DP FO
1by1 SR Fakeout.
QML/FL/HB. FO location: FO in the
The QML in this case has a
confluence of a flag limit and a beginning.
FO Distance: Standard.
hidden base.
General
When the QML is
associated with an FL. It is
more probable to put the SL
above the FL to lower the
risk.
CMF Research Think like an institutional trader 124
DP FO
1by1 SR Fakeout.
CCC-QML/BE. FO location: Beginning.
The decision point is in the form FO Distance: Average.
of Cho-Cho-Cho QML. A CCC-
General
QML is a combination of an The DP managed to respect
SSR and a QML. The DP is the decision point and went
aligned with a Bearish on to hit the OTM zone.
Engulfing candlestick pattern
which adds extra strength to
the DP of interest.
CMF Research Think like an institutional trader 125
DP
The QML has no extra confluence.
FO
The FO is in the form of a
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Standard.
The price respected the Quasimodo
Level and went on to hit the OTM
zone.
CMF Research Think like an institutional trader 126
CMF Research Chapter 3 127
Golden Fakeout
Think like an institutional trader
FO
The flashcard shows a 1by2 SR flip
FO. This FO is considered more
powerful than a 2by1 FO.
General
Assuming that we were
anticipating to sell on the supply
zone above the SR line. The ideal
scenario is that the price should
not hit the OTM target before
reaching the decision point of
interest.
CMF Research Think like an institutional trader 128
General
The main aim of this chart example
is to show how a 1by2 FO looks like.
FO
The FO is in the form of a
1by2 SR flip FO.
CMF Research Think like an institutional trader During the formation of the FO, the
supply zone might have been
consumed already. Hence, when the
price returned to the zone it might
have been risky to take this trade.
129
DP FO
1by2 SR Fakeout.
There is a QML without any FO Location: Uniformly
additional confluence.
distributed.
FO Distance: Average.
General
The price managed to
respect the QML to the pip
and dropped massively until
reaching OTM.
CMF Research Think like an institutional trader 130
DP
QML/WBS.
There is a QML separating the wicks
and body of the Head candles. This
price action has a high probability of
being successful.
FO
The FO is in the form of a
1by2.
CMF Research Think like an institutional trader FO
The QML was respected to
the pip and dropped until
reaching the OTM zone.
131
DP
The decision point is in the form of a
QML aligned with a flag limit. The
flag limit is in the form of a hidden
base.
FO
1by2 SR Flip FO.
FO Location: Uniformly Distributed.
FO Distance: Below Average.
CMF Research Think like an institutional trader The distance between the QML and
the apex of the Head was quite huge.
Hence, the reasonable place to put
the SL is above the HB flag limit.
132
DP FO
1by2 SR flip Fakeout.
QML/DJ/FL. FO Distance: Average.
There is a QML aligned with a
General
Doji flag limit. As the price approached the
QML in the form of an FO.
The price respected the DP
and went on to hit the OTM
zone.
CMF Research Think like an institutional trader 133
DP
D-QML/DJ/BE.
There is a double QML in this setup.
The acceleration of price to the
downside after forming a DJ/BE was
good.
CMF Research Think like an institutional trader FO
1by3 SR Flip FO.
FO Location: Beginning.
FO Distance: Average.
The price visited the QML and
reacted it to the pip and dropped
gradually towards the OTM.
134
DP
QML/BE.
The QML has a confluence of a BE.
Although the QML is not perfectly
aligned with the BE candlestick
pattern. It is still considered valid.
CMF Research Think like an institutional trader FO
1by2 SR flip FO.
FO Location: Middle.
FO Distance: Average.
The price managed to respect the
decision point and dropped until
reaching the OTM zone. The SL
would have been placed at the apex
of the Head. However, the distance
between the QML and the apex of
the Head is quite huge.
135
DP FO
There is a QML that is not 1by2 SR Flip FO.
aligned with something FO Distance: Average.
significant.
CMF Research Think like an institutional trader General
The price came back to the
QML before the completion
of the FO. Hence, there is a
possibility that the price
might have taken the orders
at that moment.
136
DP FO
1by2 SR Fakeout.
QML/DJ. FO Location: End.
The QML is aligned with a DJ. FO Distance: Average.
General
The price managed to
respect the decision point to
the pip and dropped
towards OTM.
CMF Research Think like an institutional trader 137
DP
QML/BE.
The QML is perfectly aligned with a
BE.
FO
There is a general 1by2 SR
Flip FO.
FO Location: Beginning.
FO Distance: Average.
The price managed to respect the
decision point and went towards the
OTM target.
CMF Research Think like an institutional trader 138
DP FO
1by2 SR Fakeout.
QML/BE. FO Location: Middle.
The QML is associated with a FO Distance: Standard.
bearish candlestick pattern.
General
CMF Research Think like an institutional trader There is a possibility that
the orders had already been
consumed when the price
came back to the QML
before creating the Fakeout.
However, the DP was
respect and the price
dropped until reaching the
OTM zone.
139
DP FO
1by3 SR flip FO.
D-QML/WBS. FO Location: Uniformly
The decision point is in the form
of a D-QML. It has a confluence Distributed.
The FO distance is standard.
of the WBS although it is not
perfectly aligned. General
The price managed to
respect the decision point
and dropped until hitting the
OTM target.
CMF Research Think like an institutional trader 140
DP
QML/MM
The QML crosses two vertical lines.
The QML is aligned with a Mera-
Mera candlestick pattern.
FO
The FO is in the form of a 1by3 SR
flip FO.
FO Location: Uniformly Distributed.
FO Distance: Below Average.
CMF Research Think like an institutional trader TG1 can be placed at the SR line
and TG2 at the engulf section which
is the origin of the move.
141
DP
QML/FL/DJ.
The QML has an extra confluence of
a DJ. The Doji manifested itself in
the form of a flag limit.
FO
The FO is in the form of a
1by3 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Average.
CMF Research Think like an institutional trader The price respected the QML and
dropped until hitting the OTM zone.
142
DP
QML/WBS.
There is a QML decision point that is
aligned with a WBS.
FO
The FO is in the form of a
1by2 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The price reacted at the QML and
went on to hit the OTM target.
143
DP
The chart shows a general QML
without any additional confluence.
FO
1by2 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The DP managed to hold the price
until it has hit the OTM zone. The
price managed to go past that OTM
zone after a retracement.
144
DP FO
1by2 SR flip FO.
QML/BE. FO Distance: Average.
The QML is aligned with a
bearish engulfing candlestick General
The price reacted at the
pattern. decision point and dropped
until hitting the OTM zone.
CMF Research Think like an institutional trader 145
DP
QML/DJ.
The QML is aligned with extra QML
confluences located to the left side. The
QML is associated with a DJ.
FO
1by2 SR flip FO.
FO Location: End.
FO Distance: Standard.
CMF Research Think like an institutional trader There is an ‘N’ pattern that was
formed during the creation of R2. The
target had not yet been hit at the time
the FO was created. This made it
possible for the price to fill in the range
until reaching the OTM zone.
146
DP
QML/DJ.
The QML has an additional
confirmation of a DJ.
FO
1by3 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Average.
The price made an FO to the QML
and dropped thereafter until
reaching the OTM zone.
CMF Research Think like an institutional trader 147
DP FO
1by2 SR flip Fakeout.
QML/HB. FO Location: Middle.
The QML is aligned with an HB. FO Distance: Standard.
Although the QML is not General
perfectly aligned with an HB. It The QML was respected by
is still considered valid. price and dropped until
reaching OTM.
CMF Research Think like an institutional trader 148
DP FO
1by3 SR Fakeout.
MW-QML. This FO is also known as FO
The DP is in the form of a MW-
at the end.
QML. FO Distance: Standard.
General
The decision point was
respect to the pip.
Thereafter, the price
managed to drop but failed
to hit OTM.
CMF Research Think like an institutional trader 149
DP
CCC-QML/BE.
The CCC-QML has a confluence of
a BE.
FO
The FO is in the form of a
1by2 SR flip FO.
FO Distance: Standard.
The price respected the Cho-Cho-
Cho but not the pip. Thereafter, the
price started its journey northwards.
CMF Research Think like an institutional trader 150