DP FO
2by1 SR Flip FO.
QML/BE. FO Location: Beginning.
The QML has an additional FO Distance: Average
confirmation of a BE General
candlestick pattern. Although To reduce risk the stop loss
the BE is present, it is not might have been placed
perfectly aligned with the QML. above the BE candlestick
pattern.
CMF Research Think like an institutional trader 201
DP
QML/BE.
The QML is associated with a
bearish engulfing candlestick pattern.
FO
2by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader The price managed to respect the
decision point of interest.
Nevertheless, there was a possibility
that the SL might have been hit if it
was very tight.
202
DP
QML/FL/HB.
The QML is perfectly aligned with an
HB flag limit. The price failed to
react inside the hidden base FL.
FO
2by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader If the SL has been put below the HB
then this trade might have failed. On
the other hand, if the SL was put
below the Head then this setup
would have been successful.
203
DP FO
2by1 SR Fakeout.
CCC-QML/MM. FO Location: Beginning.
There is a CCC-QML aligned FO Distance: Average
with an MM candlestick pattern.
General
CMF Research Think like an institutional trader The price reacted on the
CCC-QML to the pip and
dropped massively until
reaching the OTM zone.
204
DP
QML/BE.
The QML is associated with a
bearish engulfing candle pattern.
The QML is perfectly aligned with a
BE.
FO
2by1 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The price came back to the decision
point of interest and respected it.
The price went on to hit the OTM
zone.
205
DP
QML/HB/FL.
The QML is aligned with a hidden
base FL.
FO
2by1 SR flip FO.
FO Location: FO at the end.
FO Distance: Standard.
The price visited the QML and
respected it to the pip. Thereafter,
the price went towards to OTM zone.
CMF Research Think like an institutional trader 206
DP
QML/WBS.
The QML is associated with a WBS.
FO
2by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader The acceleration of price to the
downside was heavy. The price
approached the decision point in the
form of an FO. Thereafter, it dropped
until hitting the OTM zone.
207
DP
The QML is not aligned with
anything significant.
FO
2by1 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
The price managed to make an FO
to the QML. The price made a touch
trade to the QML and went up in a
compressing manner.
CMF Research Think like an institutional trader 208
DP FO
3by1 SR Fakeout. This
The QML cuts across many Fakeout is also known as FO
vertical lines. This might be a
sign of weakness. There is no in the beginning.
additional confirmation in this FO Distance: Average.
setup. General
CMF Research Think like an institutional trader The QML was approached
by price by FO PA. The DP
was respected by price and
dropped. If there is a wide
distance between the QML
and the SR line. It is
advised to take partial
profits at the SR line.
209
DP FO
2by1 SR flip Fakeout.
The QML is aligned with a DJ. FO location: FO at the
The price respected the QML
beginning.
on the first time back. FO Distance: Average.
General
The decision point was
respect to the pip. The price
managed to drop but failed
to hit OTM.
CMF Research Think like an institutional trader 210
1 FO
`` 2by1 SR Fakeout.
FO Location: FO in the middle.
DP FO Distance: Average.
QML/FL. General
The QML is aligned with a flag The target was not yet hit
limit, which was not drawn in when the price visited the
DP after creating an FO.
this case.
The zone became an
attraction zone for price.
CMF Research Think like an institutional trader 211
DP
QML/DJ.
The chart shows an ordinary QML
with a Doji confluence. The DJ is not
in the form of a flag limit.
FO
2by1 SR flip FO.
FO location: FO in the
beginning.
FO Distance: Average.
CMF Research Think like an institutional trader There is quite a huge distance
between the QML and the FO. It is
advised to take the conservative
profit at the SR line and the rest at
the OTM zone.
212
DP FO
2by1 SR flip Fakeout.
The QML is associated with a FO Location: Beginning.
bullish engulfing candlestick FO Distance: Standard.
pattern. Nevertheless, the QML
is not perfectly aligned with the General
opening/closing of the bearish The acceleration of price
upwards during the creation
candle. of the setup was awesome.
The price respected the DP
CMF Research Think like an institutional trader and went towards the origin
of the move.
213
DP
The QML has no extra confluence.
CMF Research Think like an institutional trader FO
2by1 SR Flip FO.
FO Location: Middle.
FO Distance: Average.
FO
The price visited the QML
before creating the FO PA.
This might have made the
decision point weak.
214
DP FO
3by1 SR flip Fakeout.
QML/BE. FO Location: Middle.
The QML is aligned with a FO Distance: Average.
Bearish Engulfing candlestick
General
pattern. The price managed to
respect the decision point
and went on to hit the OTM
zone.
CMF Research Think like an institutional trader 215
CMF Research Chapter 6 216
Multiple Fakeout
Think like an institutional trader
DP
MW-QML.
There is an MW-QML decision point
in this chart example.
FO
1by5 SR flip FO.
FO Location: Uniformly
Distributed.
FO Distance: Standard.
The price managed to respect the
QML and went up until hitting the
OTM zone.
CMF Research Think like an institutional trader 217
DP
QML/BE.
The QML is aligned with a bearish
engulfing candle pattern. During the
formation of S2 and S3, the price
visited the QML which might have
weakened the DP.
FO
3by2 SR flip FO.
FO Location: Beginning.
FO Distance: Standard.
CMF Research Think like an institutional trader The price managed to respect the
DP after making a 3by2 FO and
went on to hit OTM.
218
DP
QML/HB/BE/FL.
There is a general QML in this setup.
It is aligned with a hidden base and
a bearish engulfing candlestick
pattern at the same time. The HB is
also in the form of a flag limit.
FO
5by1 SR flip FO.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The DP had many confluences
which made this trade to be a high
probabilistic setup.
219
DP FO
2by3 SR Fakeout.
There is a QML decision point FO Location: Uniform
aligned with Doji. The Doji is
not in the form of a flag limit. Distribution.
FO Distance: Standard.
CMF Research Think like an institutional trader
General
The chart example shows a
standard distance between
the SR line and the QML.
As the price reached the
QML it dropped until hitting
the OTM zone.
220
DP
QML/BE.
The QML is perfectly aligned with a
BE candlestick pattern.
FO
1by4 SR flip FO. FO
Location: Uniform
Distribution.
FO Distance: Standard.
The price respect the decision point
and dropped until hitting the OTM
zone.
CMF Research Think like an institutional trader 221
DP FO
3by2 SR Fakeout.
QML/WBS. FO Location: Uniform
The DP is in the form of a QML.
Distribution.
The QML is perfectly aligned FO Distance: Below Average.
with the WBS.
General
The price respected the
QML and dropped until
reaching the OTM zone.
CMF Research Think like an institutional trader 222
DP FO
3by2 SR flip Fakeout.
QML/WBS. FO Location: Beginning.
The DP is in the form of a QML. FO Distance: Average.
The QML is aligned with a WBS
General
candlestick pattern. The price managed to
respect the QML to the pip
and dropped heavily until
hitting the OTM zone.
CMF Research Think like an institutional trader 223
DP FO
1by4 SR flip FO.
CCC-QML/MM FO Location: Uniform
The CCC-QML is associated
with a Mera Mera. The MM is Distribution.
not perfectly aligned with the FO Distance: Below Average.
CCC-QML. General
The distance between
CMF Research Think like an institutional trader the SR line and the entry-
level was quite huge. Due
to the wide distance, TG1
can be placed at the SR line
and TG2 at OTM.
224
DP FO
2by4 SR flip Fakeout.
QML/BE. FO location: FO in the
The QML is perfectly aligned
beginning.
with a bearish candlestick FO Distance: Standard.
pattern.
General
The QML was respected by
price on FTB. The price
went towards the OTM zone
thereafter.
CMF Research Think like an institutional trader 225
DP FO
3by2 SR Flip FO.
The QML does not have an FO Location: Uniform
additional candlestick pattern
Distribution.
confirmation. FO Distance: Average.
CMF Research Think like an institutional trader General
There were various
candidate Quasimodos in
this chart example, which
might have caused
challenges in the QML
selection process.
226
DP
There is a double-QML with a DJ
confluence.
FO
1by5 SR flip FO.
FO Location: Uniform
Distribution.
FO Distance: Standard.
The distance between the QML and
the SR line was quite optimal. The
target profit should be at the OTM
zone.
CMF Research Think like an institutional trader 227
DP FO
2by3 SR flip Fakeout.
QML/FL/DJ. FO Location: Uniform
There is a valid QML perfectly
aligned with the Doji flag limit. Distribution.
FO Distance: Average.
CMF Research Think like an institutional trader
General
The first conservative target
for this trade can be at the
SR line. In this chart
example, The bottom side
of the FL managed to hold
the price and went on to hit
the OTM zone.
228
229