DP
QML/FL/MM.
The QML is associated with a Mera-
Mera candlestick pattern.
CMF Research Think like an institutional trader FO
The flashcard shows an
example of a 2T BSZ.
FO Distance: Too close to
the entry-level.
The FO happened within
the flag limit which might
have weakened the zone of
interest.
51
DP
The QML in this flashcard has no
extra confluence. The QML might
have been weakened by the spike
that occurred soon after the
formation of the Head.
FO
The FO is in the form of a
2B BSZ.
FO Location: Beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The price visited the QML and failed
to make a pip reaction. However, if
the SL was put below the head, this
trade might have been a success.
52
DP
The DP is in the form of a QML. The
QML is associated with a flag limit
that manifested in the form of a BE.
FO
2B BSZ.
The FO happened outside
the flag limit area.
FO Distance: Standard.
CMF Research Think like an institutional trader The price managed to respect the
zone of interest and went on the hit
the OTM zone. The OTM had a CO
status, hence, there was a high
possibility that the price will go past
that zone.
53
DP
The decision point is in the form of a
QML without any additional
candlestick pattern confirmation.
FO
2B BSZ FO.
The FO Distance is
standard.
After the price created a BSZ, the
price managed to react at the QML
and dropped until reaching the OTM
zone.
CMF Research Think like an institutional trader 54
CMF Research Chapter 2 55
Equilibrium Fakeout
Think like an institutional trader
DP General
The DP should always be in A 1by1 SR flip FO is the
the form of a QML. The QML most common FO that you
can be made stronger if it is can ever see in the market.
aligned with a FL that has a BE, It happens many times.
DJ, or HB candlestick pattern.
FO Distance
FO It is important to keep in
The SR FO consists of both mind that the distance
support and resistance touches. between the QML and the
The chart example shows a SR line should be standard.
1by1 SR flip FO. This is called
an equilibrium SR Fakeout.
CMF Research Think like an institutional trader 56
DP FO
1by1 SR Flip FO.
QML/MM. The FO distance is standard.
There is a QML aligned with a
MM. The QML was respected General
The price managed to do a
by price to the pip. hit and run as it reached the
MM. The price dropped until
hitting the OTM zone.
CMF Research Think like an institutional trader 57
DP FO
1by1 SR flip Fakeout.
QMM/BE. FO Location: Beginning.
The chart shows an example of The FO Distance is standard.
an Inside QM aligned perfectly
General
with a bearish candlestick The price made a touch
pattern. trade to the QMM and went
on to hit OTM. The SL can
be placed above the BE.
CMF Research Think like an institutional trader 58
DP FO
QML/HB. 1by1 SR Flip FO.
The example shows a general The FO distance is average.
QML with a hidden base that is FO Location: Middle.
not aligned with the QML.
General
The price reacted at the
QML and dropped until
reaching the OTM zone.
CMF Research Think like an institutional trader 59
DP FO
1by1 SR Flip FO.
There is a CCC-QML decision FO Location: End.
point in this chart example. The FO distance is average.
General
TG1 can be placed at the
SR line and TG2 at OTM.
CMF Research Think like an institutional trader 60
DP General
QML/DJ. The decision point
In this chart example, there is a managed to respect the
QML aligned with a DJ QML and dropped towards
candlestick.
the OTM zone.
FO
The price created a 1by1 FO. SL
FO Location: FO in the end. The SL can be placed
The FO distance is standard. above the DJ candlestick
since the apex of the Head
is too far from the QML.
CMF Research Think like an institutional trader 61
DP FO
The QML has no associate. 1by1 SR Fakeout.
FO Location: Middle.
FO Distance: Standard.
General
The price managed to
respect the decision point
and dropped until reaching
the OTM zone.
CMF Research Think like an institutional trader 62
DP FO
1by1 SR Fakeout.
QML/HB/FL. FO Location: Beginning.
The QML is associated with a FO Distance: Average.
flag limit that manifested itself
in the form of a hidden base. General
There is a possibility that
CMF Research Think like an institutional trader the orders had already been
consumed when the price
came back to the flag limit
zone before creating the
Fakeout. However, the flag
limit area was respect and
the price dropped until
reaching the OTM zone.
63
DP FO
1by1 SR Fakeout.
QML/DJ/BE. FO Location: Middle.
The QML is associated with a FO Distance: Average.
Doji or Bearish Engulfing General
candlestick pattern. However, The price managed to drop
the confluence is not clear. after reaching the QML.
CMF Research Think like an institutional trader 64
DP FO
1by1 SR Fakeout.
In this chart example, there is a FO Location: Middle.
QML without additional FO Distance: Standard.
confirmation.
General
The price managed to
respect the QML and went
on to hit the OTM zone.
CMF Research Think like an institutional trader 65
DP
D-QML/DJ.
There is a double QML aligned with
a DJ.
FO
The FO is in the form of a
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Average.
CMF Research Think like an institutional trader The price visited the QML and
respected it on FTB. Thereafter, the
price dropped until reaching the
OTM which had a CO status.
66
DP FO
1by1 SR flip Fakeout.
The QML has no additional FO Distance: Average.
confirmatory candlestick pattern.
General
The price managed to hit
the QML and dropped until
reaching the OTM.
CMF Research Think like an institutional trader 67
DP FO
1by1 SR Fakeout.
QML/MW. FO Location: End.
The QML has an MW FO Distance: Average.
confluence. General
The price respected the
decision point and went
towards the origin of the
move. The first take profit
must be on the SR line.
CMF Research Think like an institutional trader 68
DP FO
1by1 SR Flip FO.
There is a general QML FO Distance: Standard.
decision point in this setup. FO Location: Middle.
General
The price managed to
respect the QML and went
northwards.
CMF Research Think like an institutional trader 69
DP FO
1by1 SR Fakeout.
There is a general QML FO Location: End.
decision point. FO Distance: Average.
General
The price managed to
respect the QML and went
on to hit OTM.
CMF Research Think like an institutional trader 70
DP FO
1by1 SR flip Fakeout.
QMM. FO Location: Beginning.
There are two QMs perfectly FO Distance: Standard.
aligned with each other. This
type of decision point is strong. General
The price made a touch
trade to the QMM and went
on to hit OTM.
CMF Research Think like an institutional trader 71
DP FO
The DP is in the form of a 1by1 SR flip Fakeout.
general QML. The distance FO Location: Middle.
between the QML and the apex FO Location: Average.
of the Head is quite huge. This
implies that putting the SL General
above the head will result to The SR line is far away
high risk exposure. There was from the QML. Hence, the
no other definite location to SR line can be used as TG1
place the SL in this setup which
and OTM as TG2.
is a drawback.
CMF Research Think like an institutional trader 72
DP FO
1by1 SR Fakeout.
QML/FL/HB. FO Location: Beginning.
The QML is aligned with a FO Distance: Average.
hidden base flag limit.
General
The price dropped to the
SR line and retraced back a
little bit before dropping
massively until hitting the
OTM zone.
CMF Research Think like an institutional trader 73
DP FO
QML/BE. 1by1 SR Fakeout.
The QML has an additional FO Location: Middle.
confirmation of a bearish FO Distance: Average.
engulfing candlestick pattern.
General
The price struggled to hit
the OTM zone. After two
significant retracements, the
price managed to come and
hit the OTM zone.
CMF Research Think like an institutional trader 74
DP
There is a QML that is close to the
apex of the Head. The SL can be
placed at the apex of the Head.
FO
There is a general 1by1 SR
flip FO.
FO Location: Beginning.
FO Distance: Standard.
The price managed to respect the
decision point and went on to hit
OTM.
CMF Research Think like an institutional trader 75
DP FO
1by1 SR flip FO.
QML/HB. FO location: Beginning.
The QML is aligned with a FO Distance: Standard.
hidden base candlestick pattern.
General
The price reacted at the
decision point and dropped
until hitting the OTM zone.
CMF Research Think like an institutional trader 76
DP
The QML has no additional
confluence.
FO
1by1 SR flip FO.
FO Location: Middle.
FO Distance: Below
Average.
There is a huge distance between
the QML and the SR line. Therefore,
TG1 must be placed on the SR line
and TG2 at OTM. .
CMF Research Think like an institutional trader 77
DP FO
QML/FL/DJ. 1by1 SR Fakeout.
The QML is aligned with a Doji FO Location: Middle.
FO Distance: Average.
flag limit.
General
The price respected the flag
limit area and went up
northwards until it has hit
the OTM zone.
CMF Research Think like an institutional trader 78
DP FO
1by1 SR flip FO.
QML/WBS. FO Location: Middle.
The QML is aligned with a WBS. FO Distance: Standard.
General
The price reacted within
the WBS zone and went
southwards.
CMF Research Think like an institutional trader 79
DP FO
1by1 SR flip FO.
QML/DJ. FO Location: Middle.
The QML is aligned with a DJ FO Distance: Standard.
which can also be classified as
General
a MM candlestick pattern. The price reacted at the
QML and dropped until
hitting the OTM zone.
CMF Research Think like an institutional trader 80
DP FO
D-QML. 1by1 SR Fakeout.
There is a double QML in this FO Location: Beginning.
setup. It has no additional FO Distance: Average.
confirmation candlestick pattern.
General
The price to managed
respect the QML and went
on to hit TG1 and TG2.
CMF Research Think like an institutional trader 81
DP FO
1by1 SR flip FO.
QML/DJ. FO Location: Middle.
The QML is aligned with a DJ. FO Distance: Average.
CMF Research Think like an institutional trader General
The decision point was
respected by price.
Thereafter, the price
dropped until hitting the
OTM. The price retraced for
a while after hitting the OTM
and continued its journey
southwards.
82
DP FO
1by1 SR Fakeout.
QML/BE. FO Distance: Average.
The QML has a BE additional
confirmation. Although the QML General
is not perfectly aligned with the The price failed to respect
BE. It is still considered fairly
the QML to the pip.
strong. Nevertheless, the price
dropped within the Head
CMF Research Think like an institutional trader zone and went to hit OTM.
83
DP FO
1by1 SR Fakeout.
The setup shows a general FO Location: Middle.
QML. FO Distance: Average
CMF Research Think like an institutional trader General
In this flashcard, the setup
was formulated very fast.
The price managed to hit
the OTM and continued
southwards. The OTM had
a CO status, which might
have caused the price to go
beyond that zone without
any struggle.
84
DP FO
1by1 SR Fakeout.
The setup shows a general FO Location: Beginning.
QML. Although the QML is not FO Distance: Average.
perfectly aligned with the BE/DJ
General
it is still valid. The price managed to hit
the OTM, Thereafter, it
continued dropping.
CMF Research Think like an institutional trader 85
DP
QML/DJ.
The QML has an additional
confirmation of a DJ.
FO
1by1 SR flip FO.
FO Distance: Average.
The DP managed to hold the price.
Thereafter, the price dropped until
reaching the OTM zone.
CMF Research Think like an institutional trader 86
DP FO
1by1 SR Fakeout.
QML/BE. FO Location: End.
The QML has an additional FO Distance: Average.
confluence of a BE. General
The price managed to hit
OTM before retracing back.
CMF Research Think like an institutional trader 87
DP FO
1by1 SR Flip FO.
D-QML/DJ. FO Location: Middle.
The decision point is in the FO Distance: Average.
form of a D-QML. It is aligned
with a DJ. The QML was General
respected by price to the pip. The price managed to hit
and run as it reached the
QML. The price went on to
hit the OTM zone.
CMF Research Think like an institutional trader 88
DP FO
1by1 SR flip Fakeout.
MW-QML.
Although the MW-QML is FO Location: End.
FO Distance: Average.
questionable it is still
considered valid. There was no General
perfect alignment between the The price compressed to
the QML and respected it.
QML and the W. Thereafter, it went to hit the
OTM zone. The OTM zone
CMF Research Think like an institutional trader had a CO status, hence, the
price managed to go past
this zone without any
difficulty.
89
DP FO
1by1 SR flip Fakeout.
QML/MM. FO location: FO in the
The QML is aligned with a MM
beginning.
candlestick pattern. FO Distance: Average.
General
The QML was respected by
price on FTB. Thereafter,
the price went on the hit
OTM and managed to go
past that zone.
CMF Research Think like an institutional trader 90
DP FO
1by1 SR Fakeout.
QML/DJ. FO Type: FO in the middle.
The QML is aligned with a DJ. FO Distance: Average.
The DJ is also in the form of a
General
flag limit. The first take profit might
have been placed at the SR
line.
CMF Research Think like an institutional trader 91
DP FO
1by1 SR Fakeout.
The QML is not aligned with FO Location: Beginning.
any additional confirmation. The FO Distance: Average.
QML might have been General
weakened by the spike that The price respected the
occurred during the creation of decision point and went on
to hit the OTM target.
the Fakeout.
CMF Research Think like an institutional trader 92
DP FO
1by1 SR flip Fakeout.
QML/DJ. FO Location: Beginning.
The DP is in the form of a QML FO Distance: Standard.
aligned with a DJ candlestick
General
pattern. The price compressed
towards the decision point
and dropped thereafter until
it has come to the origin of
the move.
CMF Research Think like an institutional trader 93
DP FO
CCC-QML/BE. 1by1 SR Fakeout.
The DP is in the form of a CCC- FO Location: End.
QML. The CCC-QML is also FO Distance: Average.
aligned with a bearish engulfing
General
candle. The FO might not be clear
to an untrained eye. These
CMF Research Think like an institutional trader
types of FOs are also
considered valid. The DP
managed to hold the price
until it has returned to the
origin of the move.
94
DP
The QML in this setup is not
associated with any clear
candlestick pattern. There is kind of
a hidden base aligned with the QML
but it is not clear.
FO
1by1 SR flip FO.
FO location: FO in the
beginning.
FO Distance: Average.
CMF Research Think like an institutional trader The OTM zone is quite big. The best
place to take profit would be at the
beginning of the OTM zone.
95
DP FO
1by1 SR flip Fakeout.
QML/BE. FO Location: Middle.
The QML level has an FO Distance: Average.
additional confirmation of a BE.
General
If the SL was placed below
the BE then this trade might
have failed.
CMF Research Think like an institutional trader 96
DP
There is a general QML in this
setup.
FO
1by1 SR flip FO.
FO location: FO in the end.
FO Distance: Average.
TG1 can be placed at the SR line
and the TG2 at the OTM zone.
CMF Research Think like an institutional trader 97
DP FO
1by1 flip SR Fakeout. This FO
QML/BE.
The QML is aligned with a is also known as FO in the
bearish engulfing candle beginning.
pattern. FO Distance: Standard.
CMF Research Think like an institutional trader General
The price approached the
DP by making an FO.
Thereafter, the DP was
respected and the price
dropped until it has reached
the OTM target.
98
DP FO
1by1 SR Fakeout.
D-QML/BE. FO Distance: Standard.
The D-QML is not perfectly FO Location: Beginning.
aligned with the BE but is still
General
considered valid. The price compressed
towards the QML and
CMF Research Think like an institutional trader respected it. Thereafter, it
dropped until reaching the
OTM zone.
99
DP
There is a CCC-QML in this setup.
FO
1by1 SR flip FO.
FO location: FO in the
beginning.
FO Distance: Average.
The CCC-QML is far away from the
SR line. Hence, partial profits can be
secured at the SSR line.
CMF Research Think like an institutional trader 100