BTMM vs ORDER BLOCKS
Btmm is a much complex strategy as compared to the Inner Circle Trader’s Order Blocks. With Btmm one has to know and understand terms like water, mayo, for example, which are simply moving averages with custom values and unique colour settings.
Steve Mauro, who is the founder of the Beat The Market Maker method, spent years trading and perfecting this strategy. Well, if you take it from us, the guy really put in the work and it is one of the most widely used strategy of all time.
The Market Maker Method is famous for its M and W patterns, also known as wedge patterns, but Steve gave the, a simple descriptive name which is also easy to relate to and remember. He clearly states where these patterns occur and when is the best time to trade them. When I first watched his 4 – Day boot camp my mind lit up. With the very first video I knew that this is what was missing in my trading, so I took notes, went over the videos over and over again until I gained understading.
If you have never heard about these patterns, you’d think people are making them up. Truth is, these patterns do exist and they play over and over again throughout the the entire week, every month and 365 days a year. However, you can’t just go about trading each and every M and W that you see in the market. You need to filter out low probability trades and complete a checklist to see that most of the conditions have been met in order to validate the trade.
Assuming you have read our previous article on BTMM, you now understand how the strategy works and what needs to appear before you even consider taking a trade. Below is a list of terms to familirize with that are used in the market maker method and their meaning.
B.T.M.M – Beat The Market Maker
T.D.I – Trader’s Dynamic Index
Well order blocks indicate imbalances and liquidity in the price. Just like indecision candles, one way of looking at order blocks is to see them as inverse engulfing candlestics meaning they’re upside down like shown in the diagram below.
Once you identify an order block the next step is to project zones from the base of the candle. This is marked as a zone of interest and when price comes back into this zone it will be strongly rejected. This is when you see wicks in price and you don’t understand why there was rejection there. It’s not that price just turned in the middle of nowhere, if you look left you would actually see an order block and that price was rejected as soon as it entered that zone.
Order blocks are strong reversal levels and 90% of the time your trade always plays out. If you haven’t had any success with trading order blocks for some weird reason, I suggest that you try them out on this flawless broker.
BTMM & Order Block
In conclusion we have found out that if you combine btmm and the order block strategy you will have a 95% chance of being successful in trading. This means you will only be looking for Ms and Ws on Order Block zones. The O/B will be used for identifying strong levels of reversals whereas the market maker method will be used for entries and exits. This combination will give you a high success rate and you can also throw in price action to get sniper entries.
Written By: Allen Matshalaga
Allen is a professional forex trader, blogger and an online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.