Since you cannot be a Market Maker, the best strategy ever is the “FOLLOW” Strategy.

What is the “FOLLOW” strategy?

As the word implies just follow the market makers:

“Let them do what they have to do and then just follow”.

How do you do that?

1. Let the price reach a significant level, such as a Fib (50-61.8) or a Resistance/ Support Level on high timeframe (H4, Daily, Weekly, Monthly) – Why at these points? Because this is where Market Makers and Robots like to trade. If we were to prioritize the timeframes from 1 to 4 with 1 being the most significant then the order would be as follows 1 Monthly, 2 Weekly, 3 Daily, 4 H4.

2. Let them do what they to do at these locations – use the following to identify their intentions (are they buying or selling ) by analyzing  the 1H chart (if 1H charts is too messy use the 4H chart):

   1. Speed Index change in behavior by comparing with previous SI numbers

   2. Effort vs. Result by comparing the Pip Wave vs. the Volume Wave

   3. Read the individual high volume bars, are they at the top or at the bottom

   4. Identify Speed Index patterns Plutus and Plutus Reversal

3. Wait for the break of a significant level such as 1H or 4H resistance/support

4. Read the on last waves just before the break (points mentioned on bullet 2.) and if your analysis agrees with the move then enter on 1H close.

5. Targets: Enter with three orders of equal amount each.

   1.  Your 1st order target should be the next significant level on the 1H/4H chart. Once 1st order target is reached, move the stop loss of your 2nd and 3rd order to Break Even.

   2. Your 2nd order target is the next significant level on the 1H/4H chart

   3. Your 3rd order is the so called “crazy order” let it run and start moving the stop loss to profit levels below or above significant levels on higher timeframes. This order might catch a nice trend with a very high Reward/Risk ratio.

6. Stop Loss: Since many times this is happening in a ranging environment of the 1H chart your stop loss should be located above or below the range.

7. Reward to Risk Ratios: The reward to risk ratio of order 1 should above 1 otherwise there is no point of entering.

8. Remember: Market Makers need time to absorb orders, usually they take days especially when it comes to changing a trend therefore you have plenty of time. They cannot do this fast basically for two reasons: first the orders to be absorbed are just not there and second even if the orders were there, they will be easily identified by the huge volumes. They rely on your impatience to trade, so be patient and enter at the right time. From my experience accumulation/distribution takes somewhere between 2 to 6 days in forex pairs (sometimes even more) so be patient.

Examples : The FOLLOW Stragegy