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Market Maker Method Steve Mauro
- Updated: Daily
- 4min Read
“Steve Mauro”, the creator of the Market Maker Method, an exceptional forex trading strategy that exposes how Banks place positions so that retail traders may also take advantage and benefit from this.
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Table of Contents
- Is Steve Mauro a market maker?
- The Market Maker Method
- MMM Patterns and Setups
- Trading M and W Patterns
- Confirmed M and W
- Advanced M and W Rules
- London Patterns
- Half a Batman
- Type 2: Half Batman (Bullish)
- ID 50
- 50/50 1 Hour
- M and W Off Mayo
- Risk Management
- What is the Market Maker Method developed by Steve Mauro?
- How can the Market Maker Method indicators by Steve Mauro enhance my trading strategy?
- Are Steve Mauro indicators suitable for beginners?
- Can I use Steve Mauro indicators for trading in markets other than forex?
Is Steve Mauro a market maker?
No, Steve Mauro is not a market maker. He is a well-known forex trader and educator who developed the Btmm MT4 indicator, which was designed to help traders understand market maker behavior and capitalize on it.
The Market Maker Method
The market maker method is all about making money on financial markets by buying low and selling high.
It involves using technical analysis to identify a market trend and then buying an asset when its price drops below a certain level, to sell it when its price rises above that level.
This strategy aims to take advantage of short-term price changes in a market moving in a specific direction to achieve quick profits.
MMM Patterns and Setups
This is what we will be looking for as confirmation before entering a trade.
- Confirmed M and W
- Advanced M and W
- 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)
Trading M and W Patterns
The main objective of the Market Makers is to make money, hence they have to sell to willing buyers also known as retail traders, that’s you and me.
This is achieved by:
1. Inducing traders to take positions
Using a range of price movements to ‘trick’ traders into taking a position in a given direction but then reversing it again.
Retail traders will jump into the market seeing momentum yet it’s just to trap them bearish while the market makers reverse the market and go long.
2. Creating panic and fear to make traders emotional and think irrationally
This often involves:
- quick moves
- spike candles
- news releases
- inexplicable price behaviour
3. Hitting the Stops and Clearing the Board
This forces traders into ‘margin trouble’ and ultimately out of the market.
Confirmed M and W
RULES
The first leg must close out of the 13 Exponential Moving Average (EMA) below/above then close back in the 13 EMA below/above creating an angle.
The second leg comes out of the 13 ema below/above then close back above/below the 13 ema with the candlestick pattern (RR, Morning and Evening Star, COW).
Traders Dynamic Index confirmation (TDI), the Relative Strength Index (RSI) should be below/above the Middle Band Line (MBL) crossing the signal line.
Advanced M and W Rules
The 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:
- High of the Day or Low of the Day (HOD & LOD)
- Level 3 reversal areas
- Yesterday’s High or Yesterday’s Low (Blue Tracer)
- After SHH or SHL above/below the Asian range.
- At the Exponential Moving Averages (Water, Mayo, etc)
- After the Average Daily Range has been met or exceeded
London Patterns
Type 1: (W) and Type 2: (M) Patterns
The Japanese candlesticks can sometimes be confusing if want to spot the Market Maker cycle clearly, be sure to switch to the Line chart on your dashboard. You will see your charts as simple as above.
RULES
The same rules of entry and exit as its applied to the Confirmed M and W patterns.
Type 1 – M/W is formed above or below the Asian range.
Type 2 – M/W is formed within the Asian range.
Type 3 – (50/50/50) simply means price bounce off 50 ema.
On the TDI, the RSI should be above or below the MBL and 50 static (dotted black line at the middle of the TDI) crossing the signal line. All this occupies 50% of the Asian range, this is why it is called 50/50/50.
Half a Batman
Half a Batman is an incomplete M and W pattern. This is a market maker trap that leaves trapped volume untouched.
Type 1: Half Batman (Bearish)
RULES
Outside structure, first leg.
- Price closes above or below the 13 ema and comes back again to challenge the first leg.
- Price fails to reach the first leg by 10 pips.
- Entry trigger, shift candle 10 -12 pips.
- The shift candle needs to close above or below the apex, which is the middle of the structure.
- Price closes above or below the 13 ema with the TDI confirmation.
Type 2: Half Batman (Bullish)
RULES
- Outside structure, first leg.
- Price closes above or below the 13 ema.
- Price traps off the lower EMA, usually the 50 ema.
- Price will not go back through the 13 ema.
- Entry trigger, shift candle 10 – 12 pips.
- Shift candle closes above or below the apex.
- Price closes above or below the 13 ema with the TDI confirmation.
ID 50
This happens on the 15-minute chart. Intraday 50 bounce. Trend continuation after the formation of an anchor.
RULES
- Must have an anchor present on the left side.
- The two 13 ema and 50 ema must cross.
- First, pull back to the 50 ema, about 20 – 25 pips. This is a quick move back to the 50 ema.
- Wait for the price to trap at the 50 ema.
- The entry trigger will be the RR, COW, the morning and evening star, closing below the 13 ema, etc.
- TDI confirmation, RSI signal line cross must be above or below the MBL as other TDI confirmations.
50/50 1 Hour
It helps to catch more pips when traded on pairs with low ADR values resulting in massive pips when caught on pairs with big ADR values.
RULES
- Must have an anchor present to the left
- The 13ema and 50 ema must cross
- First, pull back to the 50 which is about (20 – 25 pips), this is a quick move back to 50 ema
- Wait for the price to trap traders at the 50 ema
- Entry trigger, RR, COW, the morning and evening star, etc, closing below the 13 ema
- TDI confirmation, the RSI signal line cross must be above or below the MBL as in other TDI confirmations.
M and W Off Mayo
In this trade, the Market Makers are creating a reversal pattern off the 200 ema. On the 1 hour chart, it’s a 50/50 bounce trade. This can happen at any of the 3 levels but it mostly happens on level 2. It is not advised to trade back an anchor (level 1).
The same entry rules applied to the Confirmed M and W patterns.
- The second leg closes above or below the 13 ema.
- TDI confirmation.
Risk Management
- Set your Stop Loss (SL) above or below the shift candle which closed below the 13 ema.
- You should target around 30 – 40 pips fo consistency.
- The 13 ema can act as your guide during a running trade.
- You can exit a trade when the price comes back and closes above or below the 13 ema.
- Avoid trading night hours to stay away from the Market Maker traps.
Btmm indicators free download MT4
Conclusion
The market is dynamic, meaning that it’s everchanging, hence the Market Maker method by Steve Mauro is the best suitable strategy for such criteria.
Steve also created an indicator to complement his strategy. Unfortunately, only the PC version of the indicator is available at the moment.
However, improvisations may be made by playing around with different indicators on your mobile to come up with the Traders Dynamic Index indicator (TDI). The TDI acts like an RSI but it’s more complex and a powerful strategy on its own.
You can learn how to set this indicator on your phone or tablet by reading this article “TDI settings for mobile“, this works for both Android and iOS devices.
Frequently Asked Questions
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What is the Market Maker Method developed by Steve Mauro?
The Market Maker Method is a trading strategy developed by Steve Mauro. It focuses on understanding the behavior of market makers in the forex market and aims to capitalize on their moves and market manipulation to identify profitable trading opportunities.
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How can the Market Maker Method indicators by Steve Mauro enhance my trading strategy?
The Market Maker Method indicators provide valuable insights into market dynamics, including support and resistance zones, volume analysis, and market maker patterns. By incorporating these indicators into your trading strategy, you can make more informed trading decisions and potentially improve trading accuracy.
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Are Steve Mauro indicators suitable for beginners?
While Steve Mauro MT4 indicators can be beneficial for traders at all levels, beginners should first gain a solid understanding of the forex market and basic trading principles. It is essential to invest time in learning how to interpret the indicators and develop a strong foundation in technical analysis.
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Can I use Steve Mauro indicators for trading in markets other than forex?
Steve Mauro MT4 indicators are primarily designed for the forex market. However, some traders may adapt these indicators for use in other financial markets, such as synthetic indices, stocks, or commodities.
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