Market Maker Method Steve Mauro
The Market Maker Method, developed by Steve Mauro, is a trading approach aimed at assisting traders in recognizing market patterns and making informed trades. The strategy focuses on using technical analysis to find critical support and resistance levels and determining the market direction. The Market Maker Method emphasizes the significance of comprehending the actions of market makers, who are substantial institutional traders influencing market trends. This method offers traders a set of techniques and tools for analyzing market information and making well-informed trading decisions in various financial markets.
- Understanding of market maker behavior
- Ability to trade in different market conditions
- Potential for increased profitability through the use of specific strategies and techniques
Market Maker Method
This article is for people who have knowledge about the Market Maker Method or who have read our previous Steve Mauro’s BTMM article.
Hi, its Allen Matshalaga here, your friendly neigbourhood content creator. So I’ve been getting a lot of emails from people asking how this method actually works, that’s why I decided to publish this article explaining in detail how you implement all the information that you have read about the market maker method.
If you do not have a deriv forex, synthentic indices or volatility account, open a demo account now, so that we can move on together and everything makes sense.
BTMM Patterns and Setups
This is what we will be looking for as confirmation before entering a trade.
1. Confirmed M and W
2. Advanced M and W
3. London patterns
– Type 1, Type 2 and Type 3
– Half a Batman
– Type 1 and Type 2
– ID 50 (15 minutes)
– 50/50 bounce (1 hour)
– 50/50 (All Exponential Moving averages)
1. CONFIRMED M AND W.
RULES
The first leg must close out of the 13 EMA below/above then close back in the 13 EMA below/above creating an angle. Second leg comes out of the 13 EMA below/above then close back above/below the 13 EMA with the candle stick pattern (RR, morning /evening star, COW).
TDI confirmation, the RSI should be below/above the MBL crossing the signal line.
2. ADVANCED M AND W RULES
First leg does not close above/below 13 EMA but consolidates in a range of 8 or more candles below/above the 13 EMA before shifting and closing above.
TDI confirmation, the RSI should be outside the band (first leg), then it comes back and close above/below the MBL crossing signal line.
These patterns are mostly found at:
– HOD or LOD
– Level 3 reversal areas
– YH or YL (blue tracer)
– After SHH or SHL above/below Asian range
– At Emas (water, Mayo, ect)
– After ADR has been meet or exceeded
3. LONDON PATTERNS.
RULES
Same rules of entry and exit as its applied on M and W patterns.
Type 1 – M/W is formed above/below Asian range
Type 2 – M/W is formed within Asian range
Type 3 – (50/50/50) simply means price bounce off 50 ema.
On TDI, the RSI should be above/below the MBL and 50 static (dotted black line at the middle of TDI) crossing the signal line. All this occupies 50% of Asian range, this is why it is called 50/50/50.
You can look at the examples below. The Japanese candlesticks can sometimes be confusing if want to clear spot the btmm cycle, be sure to switch the Line chart on your dashboard. You will see your charts as simple as below:
Type 1: (W) and Type 2: (M) Patterns
4. HALF A BATMAN
Incomplete M and W pattern. Market maker trap and leave trapped volume untouched.
Type 1: Half Batman (Bearish)
RULES
– Outside structure, first leg.
– Price close above/below 13 and come back again to challenge first leg.
– Price fails to reach first leg by 10 pips.
– Entry trigger, shift candle 10-12 pips.
– Shift candle needs to close above/below apex(middle of the structure).
– Price close above/below 13 with TDI confirmation.
Type 2: Half Batman Bullish
RULES
– Outside structure, first leg
– Price close above/below 13
– Price trap off the lower EMA, usually 50
– Price will not go back through 13
– Entry trigger, shift candle 10-12 pips
– Shift candle closes above/below apex
– Price close above/below 13 with TDI confirmation.
5. ID 50.
This happens on 15 min chart. Intraday 50 bounce. Trend continuation after formation of anchor.
RULES
– Must have anchor present left
– 13/50 cross
– First pull back to 50 (20-25) pips, this is quick move back to 50
– Wait for price to trap at 50 ema
– Entry trigger, RR, COW, morning/evening star, etc. ..closing below 13
– TDI confirmation, RSI/Signal line cross (not must to be above/below MBL as other TDI confirmations)
6. 50/50 1hr
Helps to catch more pips when traded on pairs with low ADR values. Result massive pips when caught on pairs with big ADR value.
RULES
Same rules apply on ID 50
7. M AND W OFF MAYO.
Market maker are creating a reversal pattern off the 200EMA. On 1hr chart its 50/50 bounce trade. Can happen at any of 3 levels but mostly happen on level 2. Not advised to trade back an anchor (level 1).
Same entries rules applied on M and W patterns
– Second leg close above/below 13
– TDI confirmation.
RISK MANAGEMENT.
– Set SL above/below shift candle closed below 13.
– Target 30-40 pips for a consistency.
– 13 ema can act as your guide during running trade. You can exit a trade when price comes back and close above/below 13 ema.
– Avoid trade night hours in order to stay away of traps.
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Written By: Allen Matshalaga
Allen is a professional forex trader, blogger, and online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.