DP FO
1by2 SR flip Fakeout.
The QML is not associated with FO Distance: Standard.
any extra confluence.
General
The QML was respected to
the pip by price and
dropped until reaching the
OTM zone.
CMF Research Think like an institutional trader 151
DP FO
1by2 SR flip Fakeout.
The DP is in the form of a QML This FO is also known as FO
aligned with a DJ.
at the end.
CMF Research Think like an institutional trader FO Distance: Average.
General
The price managed to visit
the QML before creating the
FO which might have
weakened the decision
point. Nevertheless, the
QML managed to hold the
price on FTB.
152
DP
The QML in this case does not
separate the wicks and body of the
Head. In this instance, it cuts the
wicks across which is not the ideal
scenario.
CMF Research Think like an institutional trader FO
The FO is in the form of a 1by2
SR flip FO.
FO Location: Uniformly Distributed.
The QML that cuts across wicks
without becoming a separator of the
body and wicks is classified as fairly
strong. Moreover, the price
managed to make an FO before
hitting the target (OTM) which is the
ideal price action.
153
DP FO
1by2 SR Fakeout.
There is a general QML in this FO Location: Beginning.
chart example without extra FO Distance: Average.
confluences.
General
The price came back during
the formation of the FO. It
might have weakened the
zone at that moment.
CMF Research Think like an institutional trader 154
DP
CCC-QML.
The QML is in the form of a CCC-
QML.
FO
1by2 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Standard.
The price respected the CCC-QML
and went in the anticipated direction.
CMF Research Think like an institutional trader 155
DP FO
1by2 SR Fakeout.
There is a general QML in this FO Location: Middle.
chart example without extra FO Distance: Average.
confluences.
General
CMF Research Think like an institutional trader The distance between the
SR line and the QML is
quite huge. This is a
drawback. However, the
trade was successful, since
the price respected QML to
the pip and went on to hit
OTM.
156
DP
QML/WBS.
The QML separates the wick and the
body of the candles. However, there
is no perfect alignment in this case.
The trade might have been missed if
the pending order had been placed
exactly at the apex of the QML.
FO
1by2 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader There were two possible take profits
in this setup. Just above the SR line
and at the origin of the move.
157
DP FO
1by2 SR Fakeout.
QML/DJ/BE. FO Location: End.
There is a QML DP aligned with FO Distance: Average.
a DJ/BE. General
Since the distance between
CMF Research Think like an institutional trader the Quasimodo Level and
the SR line is wide. The first
conservative TG1 must be
on the SR line then TG2 at
the OTM zone.
158
DP FO
1by2 SR flip Fakeout.
CCC-QML/BE. FO Location: Middle.
The chart presents a CCC-QML FO Distance: Average.
decision point. The CCC-QML
General
is also aligned with a bearish The CCC-QML DP was
engulfing candle. respected by price on FTB.
The price managed to hit
CMF Research Think like an institutional trader the OTM zone which was
an attraction of price.
159
DP FO
1by2 SR Fakeout.
QML/BE. FO Location: Middle.
There is a QML that is not FO Distance: Standard.
perfectly aligned with a bullish
General
engulfing candle. The price managed to
respect the QML and went
on to hit OTM.
CMF Research Think like an institutional trader 160
DP
QML/WBS.
The QML separates the wick and the
body of the Head candles.
FO
1by2 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
The conservative target can be
placed at the SR flip whereas the
final target can be at the OTM target.
CMF Research Think like an institutional trader 161
DP FO
1by2 SR Fakeout.
QML/FL/HB. FO Location: End.
The QML DP is aligned with a FO Distance: Below Average.
hidden base FL. General
The distance between the
SR line and QML is huge.
Owing to this, the first
conservative target can be
placed at the SR line.
CMF Research Think like an institutional trader 162
DP FO
1by2 SR Fakeout.
MW-QML. FO Location: Middle.
The decision point is in the FO Distance: Standard.
form of a an MW-QML. General
The moment R2 was
CMF Research Think like an institutional trader created, the price failed to
hit the target before
returning to the QML. If the
target has not yet been hit,
then it is more likely that the
price will come to hit the
OTM after reaching QML.
163
DP
QML/BE.
The QML is perfectly aligned with a
bearish candlestick pattern.
FO
1by3 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Standard.
CMF Research Think like an institutional trader The SL can be placed above the BE.
The price managed to respect the
zone of interest and went on to hit
TG1.
164
DP
QML/FL/DJ.
The QML has an additional
confirmation of a DJ flag limit.
FO
1by2 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader The distance between the SR line
and the QML is quite huge. This
implies the conservative TG1 should
be at the SR line whereas TG2 at
OTM.
165
DP
The QML does not have an
additional confirmation but is still
acceptable.
FO
1by2 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Standard.
The price made an FO to the QML
and respected it just for a short time.
CMF Research Think like an institutional trader 166
DP
QML does not have an extra
confirmation.
FO
1by2 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Standard.
The price approached the QML in
the form of an FO and dropped until
hitting OTM.
CMF Research Think like an institutional trader 167
DP
QML/BE.
The QML has an additional
confirmation of a BE.
FO
1by2 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Average.
CMF Research Think like an institutional trader The distance between the SR line
and the QML is quite huge. The SR
can be used as the first target and
the OTM as the second target.
168
DP
QML/HB.
The Quasimodo Level was not
drawn perfectly. It is more likely that
this setup might have been missed.
There is also a hidden base around
the QML area but it is not in the form
of a flag limit.
FO
1by2 SR flip FO.
FO Distance: Average.
CMF Research Think like an institutional trader The price respect the questionable
decision point and went on to hit the
OTM zone.
169
DP
The QML is not aligned with an
additional confluence.
FO
1by3 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
The price made an FO to the QML
and dropped towards the OTM zone.
CMF Research Think like an institutional trader 170
DP FO
1by2 SR Fakeout.
QML/BE. FO Location: End.
The QML is perfectly aligned FO Distance: Average.
with a bearish engulfing candle
General
pattern. The target was not hit
during the formation of the
CMF Research Think like an institutional trader FO. This made the OTM
attractive. The price
managed to respect the
QML and went on to hit
OTM.
171
DP
QML/BE.
The QML is aligned with a bearish
engulfing candle pattern.
FO
1by2 SR flip FO.
FO Location: Uniformly
Distributed,
FO Distance: Standard.
The price respect the decision point
and dropped towards the OTM zone.
CMF Research Think like an institutional trader 172
DP FO
1by2 SR Fakeout.
The QML cuts through wicks. FO Location: Beginning
There are no additional FO Distance: Average.
confirmations to the QML. General
The price managed to hit
the OTM zone after being
held by the DP.
CMF Research Think like an institutional trader 173
DP FO
1by2 SR Fakeout.
QML/BE. FO Location: Beginning.
The QML is perfectly aligned FO Distance: Average.
with a BE. General
The price made an ‘N’
CMF Research Think like an institutional trader
shape as it was
approaching the DP. This
implies that the target had
not yet been hit at the time
the price made an FO to the
QML.
174
DP FO
The QML has no extra 1by2 SR Fakeout.
confluence factor. There is a DJ FO Location: Uniformly
at the Head area but not
aligned with the QML. Distributed
FO Distance: Standard.
CMF Research Think like an institutional trader
General
The price made an ‘N’
shape as it was
approaching the DP. After
reaching the decision point,
the price dropped until
reaching the ENG area
which is the origin of the
move.
175
DP
QML/DJ.
The QML is aligned with a DJ. The
DJ might not be visible to an
untrained eye.
FO
1by2 SR flip FO.
FO Location: Uniformly Distributed.
FO Distance: Average.
CMF Research Think like an institutional trader The SR line can be used as TG1
whereas the OTM can be used as
TG2. The lower side of R2 failed to
hit the target during FO formulation
as expected. The price reacted on
the QML and dropped until hitting
the OTM zone.
176
DP FO
1by2 SR flip Fakeout.
There is a general QML in this FO Location: Uniformly
setup that does not have any
Distributed.
additional confirmation. FO Distance: Standard.
CMF Research Think like an institutional trader General
The price compressed to
the QML and managed to
respect the DP. Thereafter,
the price dropped heavily
until reaching the OTM
target.
177
DP FO
There is a QML DP that is 1by2 SR Fakeout.
perfectly aligned with a bullish FO Location: Uniformly
engulfing candle pattern.
Distributed.
FO Distance: Standard.
General
The price made an FO to
the QML and went
northwards as anticipated.
CMF Research Think like an institutional trader 178
DP
There is a CCC-QML decision point
in this setup. The QML is aligned
with a BE candlestick pattern.
FO
1by2 SR flip FO.
FO Location: Beginning.
FO Distance: Standard.
If the price makes an FO in the
beginning, pending orders can be
placed since the PA will have
already been made.
CMF Research Think like an institutional trader 179
DP FO
1by2 SR Fakeout.
The decision point is in the form FO Distance: Standard.
of a general QML.
General
The DP managed to hold
the price and dropped until
it has reached the OTM
zone.
CMF Research Think like an institutional trader 180
CMF Research Chapter 4 181
Squared Fakeout
Think like an institutional trader
DP General
In this chart example, there is a During the creation of R2,
the price made an N shape.
supply zone DP. In this book, The ideal scenario is that
we do not consider a supply as
a valid DP unless it is aligned the bottom side of R2
should not come to the
with a QML. OTM zone before visiting to
FO the decision point.
The FO is in the form of a 2by2
FO Distance
SR flip FO. The FO distance is
classified as average.
CMF Research Think like an institutional trader 182
DP
D-QML/BE.
The QML is associated with a
bearish candlestick pattern.
Nevertheless, the BE is not perfectly
aligned with D-QML.
FO
2by2 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The price respect the decision point
and managed to go upwards
towards the OTM zone.
183
DP FO
2by2 SR Flip Fakeout.
QML/DJ. FO Location: Middle.
The setup shows a QML with a FO Distance: Average.
DJ confluence. General
The price compressed its
way to the decision point
and dropped until reaching
the OTM zone.
CMF Research Think like an institutional trader 184
DP
D-QML/DJ.
The QML is associated with a Doji
candlestick pattern.
FO
2by2 SR flip FO. FO
Location: Uniformly
Distributed.
FO Distance: Standard.
CMF Research Think like an institutional trader The price respect the decision point
and managed to drop heavily until
hitting the OTM zone. The price
continued going southwards and did
not show any signs of respect to the
OTM zone.
185
DP FO
2by2 SR Fakeout.
QML/HB. FO Location: Uniformly
There is a QML DP aligned with
Distributed.
a HB. FO Distance: Standard.
CMF Research Think like an institutional trader General
The price managed to
respect the QML and
dropped towards the OTM.
Prior to hitting the OTM
zone, the price retraced
back to entry-level.
186
DP
QML/BE.
The QML is aligned perfectly with a
bearish candlestick pattern.
FO
2by2 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Average.
The stop loss might have been put
above the BE. The price managed to
respect the DP and dropped until it
has hit the OTM zone.
CMF Research Think like an institutional trader 187
DP
The QML is not aligned with any
additional candlestick pattern
confirmation.
FO
2by2 SR flip FO.
FO Location: Beginning.
FO Distance: Standard.
CMF Research Think like an institutional trader There was no justifiable place to put
the SL in this setup since the apex of
the Head was at a distance from the
QML. The DP was respected
superbly and the prices dropped
towards the OTM zone.
188
DP
The QML has no additional
confluence candlestick pattern.
FO
The FO is in the form of a
2by2 SR flip FO.
FO Location: Middle.
FO Distance: Average.
TG1 can be placed along the SR line
while TG2 at the OTM zone.
CMF Research Think like an institutional trader 189
DP
QML/DJ.
The QML is aligned with a DJ
candlestick pattern.
FO
2by2 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
The price respect the decision point
and dropped towards the OTM zone.
CMF Research Think like an institutional trader 190
DP FO
2by2 SR Fakeout.
QML/BE. FO Location: Beginning.
The DP is in the form of a QML FO Distance: Average.
aligned with a BE. General
The price approached the
CMF Research Think like an institutional trader decision point of interest in
the form of an FO. The DP
was respected and the price
went on to hit the OTM
zone.
191
DP FO
2by2 SR flip Fakeout.
QML/BE. FO Location: Uniformly
There is a valid QML perfectly
Distributed.
aligned with a bullish FO Distance: Average.
candlestick pattern.
General
CMF Research Think like an institutional trader The first conservative target
for this trade can be at the
SR line since the distance
between entry and SR line
is categorised as average.
192
DP FO
2by2 SR flip Fakeout.
QML/WBS. FO Location: Uniformly
The QML cuts across two
vertical lines. The QML is Distributed.
FO Distance: Average.
aligned with the WBS.
General
CMF Research Think like an institutional trader The price compressed
towards the decision point.
The DP managed to hold
the price.
TG1 would have been
placed on the SR line
whereas the other profit
target on the OTM zone.
193
DP
D-QML/CCC-QML/BE.
The double-QML decision point is
aligned with a Cho-Cho-Cho. The
QML is also perfectly aligned with a
bearish engulfing candlestick pattern.
FO
2by2 SR flip FO.
FO Location: Uniformly Distributed.
FO Distance: Below Average.
CMF Research Think like an institutional trader This price managed to respect the
DP and dropped until reaching the
OTM. The first take profit might have
been on the SR line since there is a
huge distance between the decision
point and the SR line.
194
CMF Research Chapter 5 195
Imbalance Fakeout
Think like an institutional trader
Imbalance DP
This Fakeout is classified as an It is always good to look left
imbalance FO. The imbalance when you see an immerging
comes from the disequilibrium Fakeout. A Fakeout can only be
between support and resistance tradeable if there is a potential
historical past to hold the price.
touches.
FO
2by1 SR flip Fakeout.
CMF Research Think like an institutional trader 196
DP
There is a CCC-QML in this setup.
FO
The FO is in the form of a
2by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
The price approached the CCC-QML
by compression. The price
respected the decision point and
went on to hit the OTM zone.
CMF Research Think like an institutional trader 197
DP
The QML has no additional
confluence.
FO
2by1 SR flip FO.
FO Location: End
FO Distance: Below
Average.
The DP managed to hold the price.
Thereafter, the price went on to hit
the OTM zone.
CMF Research Think like an institutional trader 198
DP
QML/WBS.
The QML is aligned with a WBS
confluence.
FO
2by1 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
The stop loss can be placed above
the WBS.
CMF Research Think like an institutional trader 199
DP FO
2by1 SR Fakeout.
The QML is not associated with FO Location: Beginning.
an additional confirmation. FO Distance: Average.
CMF Research Think like an institutional trader General
The price failed to respect
the QML to the pip. This
might have been due to the
fact the orders might have
already been consumed
during the formation of the
Fakeout.
200