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Free MBT SD Book

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0% found this document useful (0 votes)
127 views1 page

Free MBT SD Book

Uploaded by

slimnation224
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FREE MBT S/D Book

Hello and welcome, this methodology is simple but


not easy. Just like in any profession, a lot of hours
will be required to sharpen your skill level. So take
your time, learn, put to practice, make observations,
go back to the drawing board, research, and then
come back and apply.
Remember, you will not learn everything and know
it all in a weekend.
What I can tell you is that it is definitely possible to
make money consistently if the trader is willing to
put in the work.
My main goal here is to provide you as much value
as I can so you can become a consistently profitable
trader.
I would not be happy with just providing you with
knowledge of the supply & demand methodology, so
there will be information on not only the strategy,
but also trading tips, common problems I see with
other traders and how to deal with them.
If you have any questions about trading don’t
hesitate to reach out to me on my social media
“Moneyball Austin” facebook, twitter, Instagram,
Youtube, or email.

Let’s get started!


Basics Of Supply/Demand:
First thing you need to understand is that there are
many different trading strategies, supply and
demand, price action, elliot wave theory, level 2 order
screen, support and resistances, other technical
analysis, fundamentals,etc.. etc…
Anyone who tells you “this is the best strategy” is
lying to you.
Supply and demand is just 1 trading strategy, but
when used correctly can become a very powerful
strategy.
The markets are dominated by Institutions.
Institutions are the ones creating these strong
imbalances
The whole concept of supply and demand is to
identify where the “big money” is buying and selling.
Over 95% of the liquidity in trading is from the BIG
institutions. Us as retail traders are only a drop of
water in the ocean trying to identify where the big
money is buying and selling and trade with them.
So how can we identify where the “big money” is
coming in?
Well, luckily for us the big money leaves footprints on
the charts for us to identify where they bought and
sold at.
We can identify theses areas by looking for the 4
supply and demand patterns.
4 Supply And Demand Patterns:

Supply:
RBD (Rally Base Drop)
DBD (Drop Base Drop)

Demand:
DBR (Drop Base Rally)
RBR (Rally Base Rally)

A fundamental rule of thumb to remember is that we


can ONLY ever buy inside demand, and sell inside
supply. We cannot buy inside supply or sell inside
demand no matter the timeframe.

Notice how all these 4 patterns have “STRONG


IMBALANCE CANDLES” as the leg out. If there
was no imbalance, then price would simple go
sideways or slowly grind up or down.

Remember, we are “imbalance traders” NOT


balance.

These 4 patterns are where the big money is


buying and selling at the most. These areas are
where the big money previously saw value so
they might see value in them again when price
returns.

As supply and demand traders we “NEED” to be


trading at these zones.

Next, let’s quickly talk about how to drawt the


supply-demand zones on a chart.

Distal lines: The furthest line at the level


USUALLY consists of 50% candles at the base of
the zone where the meat of the orders is located.
(Usually placed at the highest wick in the base
for supply zones and placed at the lowest wick in
the base for the demand zone).

Proximal lines: Closest line to the level


USUALLY consist of 50% candles at the base of
the zone where the meat of the orders are
located. (Usually placed at the lowest for supply
zones and placed at the highest for demand).
We will cover this in detail in the videos.

Trends, Newtons Law Of Motion,


And Multiple Timeframe Analysis:
There are many different trade setups with this
methodology, set and forget, multiple timeframe
confirmation, the 1 timeframe sequence setup,
200MA setup, combination mix of different
strategies, and price action supply and demand.
Today we will talk about the “multiple timeframe
confirmation setup”.
But first we need to talk about trends, Newtons
law of motion, and multiple timeframe analysis.
Trends is age-old discussion that divides most
traders. as you probably know, traders define
trends a million and one ways. Various methods
are used from, Moving Averages, Dow theory of
Higher highs and higher lows (uptrend) and lower
highs and lower lows (downtrend); to Elliot wave
theory where impulses and corrections are used,
to those who use indicators, e.t.c. to define trend.

Because everyone trades a little different, I’m


going to let you decide on how to determine
trends. Personally, I recommend picking an easy
to follow approach so you can consistently
determine the trend. I would also direct you to
watch my tips playlist on how I personally
determine trends.

Multiple Timeframe Analysis + Trends. This


right here was my light-bulb moment as a trader
and probably one of the most important concepts
a trader can understand when it comes to trading
supply and demand.

I will use Newton's laws of motion to explain


trends and what happens to them. These laws
are easily found on Google.
Newton’s first law of motion:

Newton’s first law of motion adjusted to trading


trends:
“An object at rest stays at rest and an object in
motion stays in motion with the same speed and in
the same direction unless acted by an unbalanced
force” (AKA Higher Timeframe Zone)
-----------------------------------------------------------------------
--------------------------------------------------------

A trend will continue in its current direction UNTIL


“the bend at the end” comes when this trend
reaches an opposing LARGER timeframe zone,
for example, a downtrend on a weekly chart
reaching a monthly demand zone or a daily
uptrend reaching a weekly supply zone.
It is for this reason that it is critical that we know
where we are on the higher timeframe before we go
ahead to follow any trend and not just follow the
trend blindly. (More on this shortly).
We could go more into Newtons 1st, 2nd, and 3rd
law of motion, but we will leave it there as were
just here to cover the basics.

Putting it all together.


When price reaches our HTF (higher timeframe)
curve supply or demand zone, that is when we want
to start looking for buying and selling opportunities
because that’s where we identified where the banks
and institutions are buying and selling.
Our next job is to use our LTF (lower timeframe) or
our ITF (intermediate timeframe) and wait for the
price to turn inside out.
Remember Newton's law of motion and how we use
trading supply and demand, the only thing that can
stop a 1hr uptrend is what? A HTF supply zone, so a
4hr or daily supply zone. This is the same for
downtrends, the only thing that can stop a 1hr
downtrend is what? A HTF demand zone, so a 4hr
or daily demand zone.
This concept is used on all timeframe sequences
depending on which type of trading you are
doing.
So once price enters our HTF supply zone we
want to wait for price to show us evidence that
sellers are starting to take control.
What will we see start to happen?
1) Momentum lines being broken
2) Opposing pivot point zones being removed
3) Other criteria a trader must need based on a
set criteria + odds
Price has to do all 3, If nothing happens then we
cannot say buyers or sellers have taken control.

Keep in mind that we DO NOT buy or sell at any


supply or demand zone, but rather have a score
sheet to help us determine the quality of the zone
which in return will help us trade at high
probability trade setups with a great reward: risk
and a high win-loss%.
This is one of the main reasons traders
FAIL with this system as they fail to identify and
trade at high quality trade setups.
Luckily for you I have it all laid out for you step-
by-step easy to follow guide in the private
coaching program where you will get access to
my exact top-down analysis to identify and trade
at high quality zones.

Take Profits, Entries, Stop Loss:


This is another very popular topic that divides
most traders. No joke, I could write a 5,000-word
essay, and a 1 hour long video breaking down
each topic and still get questions.
Let me know if this sounds familiar because a lot
of traders reach out to me and say:
“I would be profitable, but price stops me out
by 1-2 pips then reverses”.
“Price just misses my entry by 1-2 pips then
takes off in my direction”.
“Price always misses my take profit by 1-2
pips then reverses and stops me out”.

My answer to this is:


“Then move your stop loss 1-2 pips further
away”.
“Then move your entry 1pip closer to price”.
“Then move your take profit 1-2pips closer”

It’s common sense isn't it?

The truth is, it’s most likely NOT 1 of these 3


issues, but rather a problem with the strategy, or
the trader itself.
Typically, as supply and demand traders we will
enter a trade at our proximal line with our stop
loss above or below the distal line, and have our
take profit location pre-determined based on
each traders trading plan.
This will also be true for trade managment, but
because everyone trades a little different I’m
going to let you decide on how to determine stop
loss location, entries, and take profits.
Personally, I recommend picking an easy to
follow approach so you can consistently have the
same entry, stop loss, take profit, and trade
managment for each trade.
No worries though, I have it all laid out for you
step-by-step easy to follow guide in the private
coaching program.

Journaling your trades:


This is another topic that I see traders time and
time again “NOT DOING”.

Guy’s, how do you expect to refine your trading


strategy and get better if you do not journal your
trades. I’m going to send you more information
on this later, but please start journaling your
trades with pictures of the top-down analysis.

If someone in my private coaching program


reaches out to me and says, “Im not getting
results”, I usually reply “ok, send me the last 20x
trades you’ve taken so I can review them”.

If the trader never journaled the trades, then I


cannot help identify where the trader is going
wrong. Maybe the trader is taking low quality
trade setups, maybe the trader is self sabotaging
their trading by getting too emotional, or not
following the trading plan.

Proper Risk + Trading Plan:


I’m going to go into more detail with this over the
next couple days, but I had to include this in the
book.

Time and time again traders reach out to me and


say “I’m up 600% this month”.

I usually reply, “Congratulations, keep up the


great work, and let me know how you perform
over the next 2 weeks”.

Most of the time they never get back to me


because they lost it all.

Why?

Because they have no trading plan, risking 25%


per trade, they used max leverage, no pre-
determined entry, stop loss, or take profit.

Do NOT risk more than 3% per trade, and make


sure you trade the plan.

Wrapping It Up + Final Notes We


Need To Cover.
We have only scratched the surface talking about
the supply and demand methodlogy + trading tips
I recommend. There is still so much we need to
cover that I will talk about over the next coming
days so keep an eye on your email inbox.

Topics we still need to cover are;

- Demo Trading vs Live Trading


- Best Forex Brokers (how to find a good
broker)
- Backtesting
- Trading Like A Casino By Thinking &
Trading In Probabilities
- Trading Plans (how to build your own 3-
step trading plan)
- How To Become A Funded Prop-Firm
Trader
- How To Grow A Small Account
- What Separates The Profitable Traders
vs Non-Profitable Traders
- 3 Steps To Become A Profitable Trader In
90-Days

And so much more!

I firmly believe that anyone who is willing to put in


the work will get results and become a
consistently profitable trader.

This is a proven strategy that I’ve been trading


for over 8-years and not only myself, but other
traders who have gone through the MBT
coaching program are getting results.

Just look at the success these traders haven


gotten since joining the Moneyball Trading
Program. (Feel free to scroll in)

The whole MBT Program is laid out for you step-


by-step easy to follow guide.

If you would like to become a consistently


profitable trader in 90-days or less where you will
be surrounded around other like-minded traders
and coached by me then you need to join the
MBT program.

<<<<Yes, I Want To Become A Trader & Join The


MBT Program>>>>

Remember, I will be sending you more


information over the coming days covering
everything I mentioned before.

Next Steps to take:


- Complete the FREE-Masterclass training. Click
Here.
- Go through the Free bonuses I sent you.
- Add me on Social Media: twitter, Instagram,
facebook, Youtube, or email me.
- Keep an eye on your inbox.

Thank you,

–Austin

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