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Klou Tobeatrader

RTM

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0% found this document useful (0 votes)
548 views106 pages

Klou Tobeatrader

RTM

Uploaded by

NabinChhetri
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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Forex trading using advanced supply and demand techniques

Key Level Over Under

T.ME/TOBEATRADER

KLOU

Chart - Master FX

1
Copyright © 2021, CMF

All rights reserved. All anatomies and flashcards used


in this book are exclusively owned by Chart-Master FX.
The distribution and direct use of this book for
mentorship programs is prohibited.

2
About the Author
Chart Master
Kudakwashe Mazibisa popularly known as the Chart
Master was born in Zimbabwe. He is currently residing in
South Africa. Kudakwashe is a full-time trader, who
worked as a statistician before joining the forex industry.
He believes in the power of forex research, data
collection through flashcards, and record keeping.
Kudakwashe is a product of Read The Market (RTM).

3
Contact Details

Email: chartmasterfx@gmail.com
We are available on YouTube, Telegram,
Instagram and Facebook. We use the name
Chart-Master FX in all these social media
platforms.

4
Acknowledgements
The KLOU standard operating procedure was
invented by Cikgu Mukmin Shahrun (CMS) of High
Liquidity Zones (HZL). He is one of the great traders, l
have ever known. Many thanks to you CMS.

5
Foreword
I am thrilled to share my knowledge and experience in
forex trading. Forex trading has helped me to be
disciplined, diligent, patient and to stay focused. The
road to become a consistent profitable trader is full of
obstacles and challenges. Forex trading is not easy. It
is not a get rich quick scheme. You need to work hard,
if you want to experience good results. If you are a
lazy kind of a person, I am sorry, forex trading is not
meant for you. Try something else! There is no
shortcut to success, you need to go through all the
phases necessary to reach the top. Happy reading!!
6
Disclaimer
There are risks associated with trading forex. Purchasing this
book will not guarantee you profits in the market. To
experience good results, I advise everyone who purchases
this book to do a lot of back-testing and forward-testing before
attempting to trade on a live account. No liability will be
assumed to Chart-Master FX for any losses incurred, as a
result of using this strategy.

Having said that the KLOU strategy gives you a significant


edge in the market. My assurance to you is that once you
master this strategy, you will be in a position to maximize
profits and minimise losses.

7
General Information

 This strategy works for currencies, indices, and any other commodities.

 This standard operating procedure works for any time timeframe i.e. M1,
M5, M15, M30, H1, H4, D1, W1, MN.

 This standard operating procedure is based on naked charts. Hence,


there are no indicators needed to master this strategy.
 Additional resources related to this strategy are available on our YouTube
and Telegram channel.

8
Stop Loss: The stop loss should be placed just above High Risk: A trade without a PA is considered a high-risk
the decision point of interest. trade.

Target Profit: The main target profit should be placed at Medium Risk: A trade with only an SnD flip approach is
the deep end of the KLOU structural drawing. considered a medium-risk trade.

Decision Points: All decision points should be located Low Risk: A trade with SnD flip in conjunction with other
inside the golden zone. Additionally, a DP located along types of PA (CP, 3D, CPLQ, FO) is classified as a low-risk
the key level has a high probability of holding the price. trade.

Price Momentum: The variable momentum should be Engulf: The KLOU setup that breaks a significant high or low
considered when evaluating the odds of trade success has a high probability of being successful.
or failure. A KLOU setup with strong momentum is
more likely to work than the one with weak momentum.

9
Check List
OBLIGATORY

OPTIONAL
Successful
Key Level
Decision Point

Decision Point SnD Flip

Price
Momentum
Approaching
10
List of Abbreviations
3D 3 Drive KL Key Level
CP Compression LL Lower Low
CPLQ Compression plus liquidity
MM Momentum
DBD Drop Base Drop MPL Maximum Pain Level
DBR Drop Base Rally OU Over under

DM Dabel Maru PA Price Approaching

DP Decision Point QML Quasimodo Level


ENG Engulf RBD Rally Base Drop
FO Fake-Out RBR Rally Base Rally
FTB First Time Back SDP Successful Decision Point

GZ SnD Supply and Demand


Golden Zone
S&R Support and Resistance
HH Higher High SOP Standard Operating Procedure
11
INTRODUCTION TO SUPPLY AND DEMAND 13

Continuous Patterns 14

Reversal Patterns 16

Supply and demand 18

KLOU COMPONENTS 20

Conceptual Framework 21
CONTENTS PAGE
Key Level 23

Over-Under 25

Decision Points 27

SDP and GZ 33

PRICE APPROACHING 35

CASE STUDY 47

FINAL WORDS 105

12
INTRODUCTION TO SUPPLY AND DEMAND

SnD COMPONENTS

Continuous Patterns
Reversal Patterns
Supply and Demand Zones
DBD
A drop base drop is classified as a continuous pattern.
The price moves down south and then pauses for a
moment before continuing with its journey to the
southern kingdom. The pause made by price is called
a base, which is also known as a decision point.

14
RBR
An RBR is a continuous pattern that has three
components namely a rally, base, and another rally.
The base created can be one or multiple bearish
candles. The base is what is called a decision point.

15
RBD
An RBD is a reversal pattern that consists of three
components namely a rally, base, drop. The base
created is called price cap. It is also a decision point
that is used in supply and demand trading.

16
DBR
A DBR is a reversal pattern that consists of three
components namely drop, base, rally. A base created
before the price rallies up is known as a decision
point.

17
Supply
There are two types of supply namely DBD and RBD.
The rule is to sell at supply. A supply is considered as
fresh if the price is yet to make the first visit. At
supply, is where selling opportunities are found.

18
Demand
There are two types of demand namely RBR and
DBR. The rule is to buy at demand. Hence, at demand
zone is where buying opportunities are found.

19
KLOU COMPONENTS

KLOU

Key Level (KL)


Over Under (OU)
Decision Points (DP)
SDP and GZ
Conceptual Framework
Successful
Price
Decision Golden Zone
Approaching
Point

Decision Supply and


Key Level
Points Demand Flip

DM, MPL, FO, CP,


Over-Under
QML. CPLQ, 3D.

21
Kite
The anatomy of the KLOU setup is rooted in the
structure of the Kite. For a sell setup, the ‘UNDER’
side should be having the longest diagonal line
whereas the ‘OVER’ having a short diagonal line. For
a buy setup, the ‘OVER’ side be longer than the
‘UNDER’ side. When trading a KLOU setup, always
remember the structure of the kite.

22
Key Level (KL)
The KL is the cornerstone of the KLOU setup. It
consists of multiple support and resistance touches. A
line is qualified as a KL if it has one or more resistance
and support touches. A line with one- sided touches is
not considered as a key level. The key level should
contain both resistance and support hits.

R = Resistance
S = Support
n = and so on

23
Key Level (KL)
As shown in the vein diagram, a key level with only
resistance touches is considered invalid. On the other
hand, a key level with only support touches is
Support Resistance
considered invalid as well. The key level should have S&R
(Not Valid) (Not Valid)
both support and resistance hits, as shown in the vein
diagram.

Valid
24
KLOU Sell Anatomy
The KLOU setup is similar to the general Quasimodo
setup. The first thing is to identify a key level that has
both support and resistance touches. The price has to
go south for a while before visiting the KL area. The
rule is to sell at a valid decision point located above
the key level. Hence, this region is called the golden
zone. As shown in the anatomy, the ‘UNDER’ side
should be longer than the ‘OVER’ side.

25
KLOU Buy Anatomy
 Identify the key level with both support and
resistance touches.

 The price should then go north for a while before


visiting the KL area.

The decision points must be located below the KL.

 The ‘OVER’ side should be longer than the


‘UNDER’ side.

26
MPL
An MPL is a special decision point that is mostly
respected by price. In this book, we will focus on four
types of MPLs. These are tricks that are played in the
market, which gives us trading opportunities.

There should be a drop of price, then a little


retracement, and a break of that retracement. This
becomes a potential selling zone on FTB.

There should be two or more equal


resistances. The price should then break the
resistance line before going south. This area becomes
a potential selling zone on FTB…, 27
MPL
There should be a rally of price, then a
pullback. Thereafter, the price creates a new lower low
(LL) before going north. This then creates a potential
buying zone on FTB.

There should be at least two support touches


before the price creates a new LL. Thereafter, the
price goes to the northern kingdom for a while before
coming back to the MPL Zone.

28
DM Sell Setup
There are generally five types of decision points that
have the potential to hold price on FTB.

The bearish candlestick should engulf both


the body and the wick of the bullish candle. It is known
as bearish engulfing.

This DP consists of a Doji and Marubozu


candle. The pattern is formed during a drop base drop
(DBD) or a rally base drop (RBD)…,

29
DM Sell Setup
The wick and the body of the bearish candle
engulf another bearish candle. It is also known as the
‘Mera Mera’ candlestick pattern.

This candlestick pattern is known as a ‘hidden


base’. It consists of two wicks from both sides, which
do not engulf each others’ bodies.

This type consists of a Doji in the middle of


two bullish candles. This candlestick pattern should be
engulfed by a Marubozu.

30
DM Buy Setup
The bullish candlestick should engulf both the
body and the wick of the bearish candle. It is known as
bullish engulfing.

This DP consists of a Doji and Marubozu


candle. The pattern is formed during a rally base rally
(RBR) or a drop base rally (DBR).

31
DM Buy Setup
The wick and the body of the bullish candle
engulf another bullish candle. It is also known as the
‘Mera Mera’ candlestick pattern.

This candlestick pattern is known as a ‘hidden


base’. It consists of two small wicks from both sides.

This decision point consists of a Doji in the


middle of the two bearish candles. This candlestick
pattern should be followed by a bullish Marubozu…,

32
SDP and GZ (Sell)
The SDP is a supply that holds the KLOU
setup. Research has shown that a KLOU setup with
an SDP has better odds of being successful than the
one without. However, even though the SDP is
important, trades can still be taken even without the
presents of it.

The golden zone is an area where decision points


are located. It is located just above the key level.

33
SDP and GZ (Buy)
The SDP is the demand to which the SOP will be
reacting too. It is a support structure that increases the
probability of winning the trade. On the other hand,
the golden zone, is where we look for decision points.

34
PRICE APPROACHING (PA)

PA COMPONENTS

Three Drive (3D)


Supply and Demand Flip (SnD Flip)
Fake-Out (FO)
Compression (CP)
Compression plus Liquidity (CPLQ)
3D Sell Setup
There are various types of three drives namely the
uniform 3D, unstructured 3D, and the last lag 3D. In
this book, we are not going to go deeper on these 3D
types.

How to draw a three drive.

As the price makes the first and second drive, you


connect these touches with a trend line. Then wait for
the price to reach a valid decision point aligned with
the 3D projection. You then sell on the third drive.

36
3D Buy Setup
A three drive is a sign that the decision point being
approached is significant. The moment the first and
second drives are complete, you connect the two
points then wait for the price to reach the decision
point on the third drive projection. You then buy on the
third drive.

37
SnD Flip (Sell)
The SnD flip is a situation where price shifts from
demand to supply as the price will be approaching a
major supply zone. Everything that is below the flip
zone automatically becomes a manipulation zone.

38
SnD Flip (Buy)
Research has shown that a KLOU setup with SnD flip
tends to be more successful than those without. SnD
flip occurs when supply shifts to demand as the price
will be heading to a major demand zone. This is
similar to the fake-out PA but it is different.

39
FO Sell Setup
Key: S = Support. R = Resistance.

A fake-out to supply should have at least a single


support with multiple resistance touches. This is why it
is called an SR flip fake-out. Fake-outs that occur near
the supply zone of interest tend to work better than
fake-outs that occur far away.

40
FO Buy Setup
Key: S = Support. R = Resistance.
A fake-out to demand should have at least a single
resistance with multiple support touches. This is why it
is called an RS flip fake-out. Fake-outs that occur near
the demand zone are more accurate than those that
occur at a distance.

41
Compression
Generally, compression is the consumption of selling
or buying orders as the price goes to a true supply or
demand. In other words, compression is a collection of
clustered order blocks. The price movement is very
slow during compression. In this regard, compression
is literally the slow movement of price. As the orders
are cleared, it becomes easier for the price to cover
the compression zone in a short period of time.

42
CP Sell Setup
There are various types of compression such as wick
compression, equilibrium compression, and
accumulation. In this book, we are not going to go
deeper into the subject matter. By definition;

Wick compression is the spiking of price south as the


price is going northeast.

Equilibrium compression is the consumption of orders


from both sides.

Accumulation is a staircase pattern that occurs as the


price goes northeast.
43
CP Buy Setup
Wick compression is the spiking of price
north as the price will be moving slowly in the
southeast direction.
Equilibrium compression is the consumption
of both buying and selling orders at the same
time.
Accumulation is a staircase pattern that
occurs as the price will be moving along the
northeast highway.

44
CPLQ (Sell)
CPLQ is a combination of two components namely
compression and liquidity. Compression is the
collection of demand orders as the price will be
approaching a supply zone or a decision point of
interest. On the other hand, liquidity is simply the quick
movement of price to a decision point. It is important
to note that at the beginning of this quick movement,
there will be some orders left. Hence, it is a potential
zone that can turn price. In this regard, you can take
some partial profits at the origin of the liquidity pool.

45
CPLQ (Buy)
CPLQ is a price approach that gives a sign that a
decision point being approached might be valid. This
PA has two components namely compression and
liquidity. Compression is the taking away of supply
orders as the price will be approaching the demand or
decision point of interest. Before the price reaches the
decision point, it makes a fast move to the demand
zone of interest. Hence, liquidity is simply the fast
movement of price to a decision point. This is why this
PA is called compression plus liquidity.

46
CASE STUDY

Currency Pairs

Indices
The SOP reacted on the SDP, which is a The decision point is aligned along the
plus. key level area, which strengthens this setup.
There is a key level with multiple S&R The price managed to react to this special
touches. decision point and the price dropped.
The over-under diagonal lines were There was no PA, which makes this trade
connected to the key level. The over and under a high-risk trade.
lines are represented by white diagonal lines.
48
There is a key level with multiple The price reacted to a decision point
resistance and support touches. just above the key level line. Decision points
The over-under is simply drawn by aligned at the key level are usually powerful.
connecting the LL and HH to the key level. The approach of price to the decision
point was questionable. It looks like a 3D
but it is not a perfect one. This makes this a
high-risk trade.
49
The SOP originally reacted to an SDP. The decision point is aligned with the
There is a good key level with multiple KL, which makes it a powerful DP. The price
S&R touches. managed to react to this decision point and
dropped massively.
The over-under structure was drawn by
connecting the LL and the HH to the KL. There was no PA in this trade, which
makes it a high-risk trade.
The momentum of the price to the
downside was strong, almost looking like a 50
straight line.
There is a good key level with both R&S The price reacted to a decision point
touches. inside the golden zone.
Below the KL, there is the golden zone The price approached the decision point
with decision points of interest. by making a 3D.
The over-under was drawn by There was also compression that was
connecting the furthest HH and LL to the going on, which is an additional
key level. confirmation.
51
There is a key level with multiple The price approached the MPL by FO.
resistance touches and a single support The FO has one support and two
touch. resistance touches.
There is an MPL inside the golden There was also a 3D, which gives
zone. further strength to the setup.
The over-under extreme points were
connected to the KL.
52
There is a valid key level. There was only one obvious decision
The extreme points were connected to point inside the golden zone. The decision
construct a kite structural pattern. point managed to hold the price.
The price approached this decision
point by FO.

53
A key level is a crucial component of this SOP. The SnD flip is one of the crucial PAs that should
There are multiple touches to the key level coming occur on every KLOU setup. A KLOU setup with an
from both sides, which makes it a valid KL. SnD flip is more likely to be successful.
The over-under extreme points were The decision point was located along the key level
connected to the KL. There is no universal rule for area which is a plus.
drawing the over and underside. What is important The price made a fake-out approach to the
is to keep the structural drawing aligned with the decision point, which was a sign that the DP was more
kite shape. likely to hold the price. 54
The key level has both support and The SnD flip was present in this setup,
resistance touches, which makes it valid. which adds extra strength to the setup.
������������������;��������������� The price made a 3D to the MPL.
were connected to the key level. There was also compression that was
There was an MPL inside the golden happening as the price was approaching the
zone, which managed to hold the price. MPL.

55
There is a key level with both support The price reacted on a decision point
and resistance touches. that is aligned with the key level.
The extreme points were connected to The price shifted from supply to
the KL to form a kite shape. demand, which is an indication that the
The momentum of price to the upside setup was more likely to work out.
was fairly strong. The price approached the decision point
There were three candidate decision in the form of a Fake-Out.
56
points inside the golden zone.
The head of the setup is coming from an The price failed to respect the decision
SDP. point aligned with the key level. The price
The key level has both resistance and reversed when it had reached the cap area
support touches. of the RBD.
The momentum of price to the downside The price made a shift from demand
was strong. to supply.
The over and under structure was drawn The price approached the cap area
decision point in the form of a 3D. 57
by connecting the extreme points.
Valid. The price reacted to an MPL inside the
The momentum of the price to the golden zone by CPLQ and FO.
downside was strong. The price made a CPLQ and FO to the
Kite shaped. golden zone. As expected the price made a
reaction on the CPLQ junction (roadblock)
before continuing to the downside.
58
The SOP reacted to the SDP. The price turned from demand to
There is a valid key level with touches supply before reaching the golden zone.
from both directions. The price approached the decision point
The momentum of the price to the inside the golden zone in the form of a
downside was fairly strong. Fake-Out.
 This trade is classified as a low-risk trade.

59
The key level is valid because it has got The price made a flip from demand to
both resistance and support touches. supply.
The structure of the over and under The price managed to do a Fake-Out to
meets the kite requirements. the decision point inside the golden zone.
The momentum of the price to the This makes this trade a low-risk setup.
downside was strong almost like a straight
vertical line.
60
The setup has an SDP support The decision point inside the golden
structure. zone managed to work successfully.
The key level has multiple touches both There was only an SnD flip PA in this
from below and above. setup. This makes this trade a medium-risk
The over-under was constructed by setup.
connecting the extreme LL and HH.

61
The key level meets the requirements The decision point is valid.
because there is at least one touch from The price approached the decision point
both the top and the bottom. in the form of a 3D.
The over and under diagonal lines
meet the kite requirements.

62
The key level has both support and The decision point is valid. It was
resistance touches. created when the price made a rally base
The over and under framework meets rally movement.
the requirements of the KLOU anatomic SnD flip occurred on this setup.
design. The price approached this decision
The momentum of price going point inside the golden zone by CPLQ. This
northwards was fairly strong. trade is a low-risk setup because it has both
SnD flip and PA confirmations. 63
The key level has both S&R touches, The decision point is located along the
which makes it valid. key level area. It managed to successfully
The under diagonal line is longer than hold the price.
the over diagonal line as expected. The price approached the decision point
The momentum of price going in the form of a 3D.
southwards was not that strong.

64
The key level has both S&R touches, The decision point is located along the
which makes it valid. key level area and managed to successfully
The diagonal over-under lines meet the hold the price on FTB.
kite requirements. The SnD flip PA was present in this
The momentum of price going setup, which gives more strength to this
southwards was strong. Almost like a trade.
straight vertical line. The price approached the golden zone
in the form of CP. 65
The key level meets the requirements The price flipped from demand to
of the KLOU setup. supply.
The over-under structure is valid. The price reacted to a decision point
The momentum of price going down inside the golden zone.
was strong on the first push phase. The price compressed towards the
decision point inside the golden zone.

66
The key level has multiple touches from The price reacted on the MPL inside
both below and above. the golden zone.
The over-under structure meets the kite The price approached the MPL in the
requirements. form of a Fake-Out.

67
The blue and red arrows represent The price reacted at the cap area of the
support and resistance touches respectively. setup.
The over-under diagonal lines were There is only an SnD flip PA in this
connected to the key level. setup, which makes this trade a medium-
risk setup.

68
This setup was strengthened by the The underside of the setup managed to
presents of the SDP. engulf a significant low. This gives a clue that the
The blue and red arrows represent price wants to go further down after the
support and resistance touches. retracement phase.
The over-under was drawn by The price was held by a valid decision point
connecting the extreme points of the setup. inside the golden zone.
The price approached the golden zone region 69
by CPLQ.
The key level is valid. The price flipped from demand to supply
The extreme points of the setup were before reaching the golden zone.
connected to the KL. The decision point in the form of an RBD
The momentum of the price to the managed to hold the price on FTB.
downside was strong. The price made a fake-out to the decision point
of interest.
70
The key level has S&R hits. The price reacted on the cap area of
The over and under diagonal lines fits the setup.
the requirements of the kite framework. The SnD flip condition was met.
The momentum of the price was strong The price approached the cap area in
to the downside before the retracement. form of compression and a three drive. This
makes this setup a low-risk trade.
71
Present. The price reached a decision point
The KL has both S&R touches. inside the golden zone, and dropped
massively.
The extreme points were connected to
the key level to form a kite shape. The price approached the golden zone
in the form of a fake-out.
The price managed to engulf a major
support zone.
72
The KL is valid with multiple touches The price reacted on a decision point
from both directions. inside the golden zone.
The over and under structure is valid, Present.
although the diagonal lines were not marked The price made a 3D approach to the
in this setup. decision point.
The momentum of the price to the
upside was strong. 73
The key level has both resistance and The price reacted on the decision point
support touches. at the cap area.
������������������;������������������� The price made a FO and 3D approach
the higher high were used to draw the kite to the decision point.
shape.
The momentum of the price was strong
to the downside. 74
The key level is valid because it has The price reacted at the cap area of the
touches from both directions. setup.
The extreme points were connected to The SnD flip is present.
the key level, which is in line with the kite The price approached the DP in the
requirements. form of a 3D.
The momentum of price was fairly  This trade can be classified as a low-risk
strong to the downside. trade. 75
The key level is significant. The price respected the MPL inside the
The over and under diagonal lines golden zone, although it engulfed it a little
meet the kite criteria. bit before dropping down.
The price managed to break all the There was no PA except the SnD flip.
major resistance lines before retracing back  This setup can be classified as a medium-
to the golden zone. risk trade.
76
The key level is valid. The decision point inside the golden
The extreme points were connected to zone managed to hold the price.
the key level. The DP was approached in the form of
The momentum of price was strong in CPLQ.
the first push phase, the momentum started
to weaken thereafter.
77
The key level has multiple S&R The price respected the MPL inside the
touches, which makes it a good KL. golden zone.
The over and under diagonal lines were The price approached the decision point
connected to the key level. in the form of an SnD flip.
The momentum of price to the upside  This trade can be classified as a medium-
was strong. risk trade.
78
The key level is significant. The price reacted to a decision point
The extreme points were connected to located at the cap area of the setup.
the key level. SnD flip is present in this setup.
The price moved southwards with The price approached the DP in form of
strong momentum. CPLQ and 3D.
 This trade is a low-risk setup.
79
The KL is valid. The price reacted on the DP inside the golden
The under diagonal line is longer than the zone.
over diagonal line, which is what is expected. The price flipped from demand to support
The momentum of price was strong on the before reaching the golden zone.
first push, then it weakened thereafter. The price approached the decision point inside
the golden zone in the form of accumulation.
80
The KL is significant because it has touches The price reacted to an MPL inside the
from both sides. golden zone.
The OU structure meets the requirements. The price approached the MPL in the form
The price managed to break a lower low of a fake-out together with compression.
that is significant.

81
The KL has both resistance and support The price reacted on the cap area.
touches, which makes it significant. The price approached the decision point in the
The structure of the over-under meets the form of a 3D and compression.
kite conditions.
The momentum of the price to the
downside was strong, it is almost like a straight
line. 82
The key level is valid since it has both S&R There is only one decision point in this case.
touches. The price respected this DP and went up.
The extreme points of the setup were There was only an SnD flip PA, which makes it
connected after identifying a valid key level. a medium-risk setup.
The momentum of price to the upside was
strong, which is a bonus.
83
The key level is significant because it has The price reacted to a valid decision point
multiple touches both from sides. inside the golden zone.
The price managed to engulf a significant There was no PA, which makes this a high-risk
low before retracing back to the golden zone. trade.
The momentum of price was fairly strong to
the downside.
84
The key level is valid. The price reacted on the cap area of the
The over-under conditions are met, setup.
although the diagonal lines were not drawn in The price approached the decision point in the
this case. form of a 3D.
The momentum of the price was strong to
the downside.
85
The KL is valid because it has S&R touches. The decision point is in the form of a drop
The lower low and the higher high of the base drop.
setup were connected to the key level. There was no PA, which makes this trade a
The price managed to break a significant high-risk trade.
low, which was an indication that the price wants
to go down.
86
The KL has both a resistance and support The price reacted on the MPL inside the
touch. golden zone.
The kite structure was drawn by connecting The price approached the DP in the form of a
the extreme points. 3D.
The price engulfed one of the highs,
however, it failed to engulf the major higher high.
87
The setup has an added advantage The price respected the decision point that is
because it had an SDP. located along the key level area.
The KL meets the requirements of the KLOU Present.
setup.
There was no PA except the SnD flip.
The extreme points of the setup were
connected to the key level.  This trade is classified as a high-risk setup.
88
There is an SDP that successfully The price dropped after reaching a decision
managed to hold the SOP. point inside the golden zone.
The key level is valid with multiple touches The price flipped from demand to supply
from both directions. before reaching the golden zone.
The KLOU drawing meets the kite The price made a compression PA.
requirements.  This setup is classified as a low-risk trade.
89
Present. The price reacted to a Quasimodo level which
Valid. is also a valid decision point and dropped.
The extreme points of the setup were Present.
connected to the key level. The price approached the QML in the form of
The momentum of price was strong at the accumulation which is simply a staircase pattern.
first push but weakened as the price went further
90
down.
The SOP was held by an SDP. The price reacted on a decision point aligned
The key level is valid. with the key level.
The price broke a significant low. The price decided to approach the decision
point in the form of compression.
The momentum of the price was strong,
looking almost like a straight pole.
91
The key level has a resistance and support The price reacted to a decision point that is
touch, which makes it valid. aligned along the key level area.
The kite shape was drawn and the The price made a CPLQ approach to the
requirements were met. decision point inside the golden zone.
The momentum of price in the southeast
direction was weak.
92
The SDP is present in this setup. There was only one obvious decision point in
There is a good key level in this setup, with this setup.
multiple resistance and support touches. The price compressed very well to the decision
The price managed to break significant point inside the golden zone before dropping
lower lows before retracing back to the golden massively.
zone.
The momentum of the price was strong to 93
the downside, almost like a straight line.
There is a valid KL in this setup. The decision point inside the golden zone
The under diagonal line is longer than managed to hold the price.
the over diagonal line, which is as expected. SnD flip is present.
The momentum of the price was strong The price approached the decision point in the
to the downside. form of accumulation.

94
Valid. Valid.
The kite requirements are met. SnD flip present.
The momentum of the price was strong The price made a 3D approach to the decision
to the downside on the first push and point.
started to lose momentum thereafter.

95
The key level has S&R touches, which The price managed to react to a decision point
makes it valid. inside the golden zone.
The OU structure design meets the kite The SnD flip PA is present in this setup.
conditions. The price made a CPLQ approach.
The momentum of the price to the  This trade is classified as a low-risk trade.
downside was strong.

96
The key level has both touches from The price managed to react on the decision
above and below. point aligned with the key level for a while before
The OU structure meets the kite going to another decision point inside the golden
requirements. zone.
There was only one general PA that is the SnD
flip.
 This trade is classified as a medium-risk trade.
97
The key level is considered valid The decision point is located along the key
because it has touches from both sides. level.
The extreme lower low and higher high The price turned from demand to supply as it
were connected to the key level. was approaching the golden zone.
The momentum of price was fairly The price approached the decision point in the
good to the downside with pauses along the form of a 3D.
way.
98
The key level is valid because it has The price reacted to the MPL inside the golden
touches from both directions. zone.
The over and under structure meets The SnD flip condition was satisfied.
the kite requirements. The price approached the MPL in the form of a
The momentum of price was strong at Fake-Out.
first but started to weaken as the price  This trade is classified as a low-risk setup.
continued going down.
99
The key level has multiple touches of The price reacted to a decision point located
support and resistance. inside the golden zone.
The over-under structure is valid with The price made a supply/demand flip.
an upper short diagonal and a lower long The approach of price to the decision point was
diagonal. in the form of CPLQ.
 This trade is classified as a low risk trade.
100
The key level has multiple touches from There was only one clear decision point inside
both sides. the golden zone.
The over and under diagonal lines The price flipped from demand to supply.
meet the kite criteria. The price approached the decision point by
The momentum of the price to the compression.
downside was fairly good.  This trade is a low-risk setup.
101
The key level is valid. There was only one clear central decision point
The extreme points of the over-under in this setup.
were connected to the key level. The price approached the decision point in the
The momentum of price to the upside form of a 3D.
was weak.

102
The key level has multiple S&R The price managed to react just for a little while
touches. on the decision point aligned at the key level.
 The over-under diagonal lines were Thereafter, it went to react on the decision point
drawn by connecting the extreme points of above it.
the setup. The SnD flip condition was present in this
The momentum of price were strong to setup.
the downside. The price compressed to a decision point of
interest and the price dropped. 103
The key level has multiple S&R There was one obvious decision point
touches. inside the golden zone.
 The over-under diagonal lines were The price made an FO to the decision
drawn by connecting the extreme points of point of interest and the price dropped.
the setup.
The momentum of the price was strong
to the downside.
104
FINAL WORDS
Thank you for purchasing this e-book. If you want this strategy to work for you, l recommend you to
do a lot of Back-testing and Forward-testing until you reach a level of mastery. For any questions
concerning this book, please feel free to email me at chartmasterfx@gmail.com. Wish you the best
in your trading career.

Lastly, we have a Telegram Channel that is active. You can join and interact with other traders to
sharpen your trading skills. We also share free content that helps you to achieve your trading goals.
Telegram link: https://t.me/chartmasterfx

105
Chart – Master FX

Think like an institutional trader

106

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