GU Behaviour – Read It Like A Book

EQUAL HIGHS / LOWS

- Equal highs below supply/key level = looking for a BUY, equal highs inside supply = looking for a SELL after
liquidity/highs are taken
- Equal lows just above demand/key level = looking for a SELL
- If you have exactly equal highs or lows at a certain price level, then the orders are perfectly filled here
- To get more fuel price is loading the gun below equals lows or above equal highs to take more liquidity
- On daily highs/lows is money, something pushed the price so high or so low during one day, good for TP’s and
interesting area how price can react here the next time
- If you see equal highs, and then somehow price is shooting up by making small m1 demand - check if there above is not
a bigger Supply and don't treat this move as a BOS. Could be high probability of taking liquidity for a true sell
- Equal high = invitation for early sellers and equal lows = invitation for early buyers
- If a 3th equal high or low had no more volume, the price will most likely go the other way

KEY LEVELS

- If price is sitting or hanging on an important key level or zone, it weakens it and it can break it
- It is not because we have hit a key level as resistance that we then look for a sell, it can also break it and make a HH
- If price is approaching a key level with rejection wicks and volume is decreasing you can take a counter trade (advanced)
- Pennants with volume at key level or zone = attacking it, smashing level and sign of boom, know that if the volume in
the pennant is decreasing it probably won’t want to break it
- Good sign if a m1 supply or demand zone is created on a key level, indicates that level is strong and valid

VOLUME

- If volume is increasing on a key level, trendline or zone a break-out move is expected

- Look at candles and volume once you are in a trade, these give an indication of what the next candle could be
- Decreasing volume = price will do something in the other direction, like decreasing volume when going back to 50’s
- Look especially for zero volume candles, move is expected after that
- Don’t be afraid of big bullish/bearish candles with almost no volume, fake move and price will go the other direction
- Strong move with gradually growing volume then you are in a good trade and it can break ‘things’ along the way
- High volume bull candle followed by a low volume bear candle, if it doesn’t go past the 50’s line it indicates that buyers
are still in control
- Doji with high volume usually indicates BOS, doji with low volume usually indicates the continuation of that move
- Decreasing volume on 50’s, sign that price don’t want to go further and respects it, all depends on what candle will
appear on the 50’s, if it’s a rejection candle after slowing down it’s a good sign the rejection really wants to happen
- Each candle had lower and lower volume, sign that there is no interest of going in that direction (like a U-turn with a car)
- Candle you measured had a certain volume and if the candle coming to the 50’s has higher volume the set-up is not valid
- Look for BIG difference in volume, sign of going the other direction, low volume = good opportunity to take a trade
- When you see 3 indecision candles with increasing volume you can take a volume entry (advanced)
- Price is decreasing but volume is also decreasing, so sellers are NOT interested in selling anymore, so we have to wait till
the buyers are taking over to join them
- Interesting to also look at the previous volume before it hits the 50’s, was it decreasing or increasing
- Volume was decreasing while going up, then made a GAP and last ‘strong push’, but after that bearish candle filled that
GAP instant with high volume and closed below that GAP, direct entry possible (advanced) or entry on 50’s of that
candle

COMPRESSION

- When compression with last strong push (to get the best price) is finished we then look for trades in the opposite
direction
- If compression has happened without last push, it’s not completed, and price can come back later

GAPS

- GAP’s on m1 TF are usually filled shortly after they are created

- Is there a GAP between 2 candles you can take them together to draw you fib
- Always extend these GAP’s far enough as they often got filled later in the day
- GAP is filled with lower volume = safe to take the trade in the direction of the GAP
- When GAP is filled with higher volume then it means that price could break and go further

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FAKE OUT

- Look at the wicks before the leg-out, when price comes back to the zone it likes to test them, to get a better price and
those levels you can identify as fake out levels
- If the base of supply is made by a bullish indecision candle then there is a greater chance that a fake out will happen,
made by a bearish candle then the chance is smaller (same for demand zone)
- Big push to the upside but after that decreasing volume, so it was a fake out move, price will go the other way
- Big bullish candle followed by an indecision candle and the next candle(s) close below the start of the bullish candle,
direct entry after that is possible (advanced)

CONNECTING CANDLES

- Try to connect candles together, 2 candles with almost the same open and close can be seen as a rejection candle and will
often follow the direction of the last candle
- Price is rising and then suddenly a bearish candle that opened above the closure of the last bullish candle, indication that
sellers are coming from above (idem when price is descending)
- Bearish candle followed by high volume bullish candle, if it then closes above 50’s of that bearish candle it could be an
indication of buyers that are coming and vice versa for selling power that is coming
- 2 candles with to each other wicks but no wicks at the ends form a marubozu candle together
- Watch out for institutional candles, price starts dropping but after that price is rising and is making a HH, price can come
back to mitigate the negative sell orders and continue the direction of the buy (manipulation, to get better price for true
buy)
- 3 candles (bear candle + doji + bull candle) together can indicate BOS and together they form 1 big rejection candle
- Candle with large wick upside and also a solid body with no wick downwards can indicate very strong selling pressure

EATING CANDLE PATTERN

- Candle 2 is eating candle 1, candle that completely eats previous candle you can trade directly or entry on 50’s
- High probability when those candles are on liquidity pools, 50’s, m1 supply/demand zone or GAP’s (to have an edge)
- Good of those candles don’t have wicks and watch the direction of the EMA17, don’t trade against it but with it

WICKS

- If wicks on HTF supply zone are getting lower and lower, it’s an indication that price has what it wanted (looks like
stairs, price is tired of going higher), if they are higher and higher it may break the zone
- If a liquidity wick (reaction to liquidity pool) ha been close to a zone but has not taken orders here, you can assume that
price will return to this zone (GU don’t miss zones)
- Wick on m1 is eating candle before, the candles before that wick are disappeared and liquidity is taken
- Price was going higher and higher and then suddenly a candle with a lot of wick appears (price was on its end and
couldn’t hold this price), know this can indicates a change of structure (no entry signal)
- Watch out for fake-out/manipulated rejection wicks, wicks will then point in a certain direction to give you a false sell or
buy signal, price will then move in the direction of the wicks
- If candle on m1 TF has longer wick than previous candle(s) this could be an indication that is has taken even more ‘fuel’
- Draw wicks on equal highs or lows to see if liquidity was taken, if highest wick was not taken by the next one you can
draw a line here, if a wick has engulfed all the previous wicks then it has taken liquidity here
- Bearish candle on the bottom without any wick from below and then appeared bullish candle with also no wicks from
below, it indicates that price have no more interest of going lower and will rise
- If a m1 zone breaks and then appears a rejection candle from the other side after it’s broken the zone, you can enter the
trade directly and put your SL just above the rejection wick (advanced)
- After BOS, wick that is taking liquidity from previous candle(s) is a very strong signal that the move will happen
- When you see a big wick on h1 or m30 TF, we’ll almost return there within the next candle to take early sellers SL’s

INDECISION CANDLES

- 1 or 2 indecision candles can be a sign of accumulating power followed by a leg out

- 3 indecision candles with increasing volume is sign that strong move is expected, decreasing volume is reversal
- 2 indecision candles above/below a m1 zone, then it is more likely to break this zone
- Indecision candle can indicate catching the move with momentum
- Indecision candle on top off upward move can indicate change of structure

OPENING FRANKFURT & LONDON

- If both Frankfurt and London start with selling pressure, you can better look for sells during that day

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 - Look closely at how they open, if this is with a strong candle then you can measure it immediately and see 50's as key
level or it can open and make a m1 supply or demand zone that is valid
- If it opens with a bullish candle but shortly after that price closed below opening, it indicates a selling move (advanced)
- If it opens with a long wick in one direction, there is a chance that price will follow the wick later on but it has to get
liquidity somewhere first
- Watch out, if they are selling all day and then suddenly strong buying power appears at the end of the day to get back to
their starting point
- For example, just before Frankie there is a drop candle and Frankie does not go past the 50's of this, indication that price
will drop further
- If Frankie is selling to take better price and after that they are buying they have to come back and mitigate this price

SUPPLY & DEMAND ZONES

- Sell or buy a zone max 2 times, these moves are the strongest, after that it can be risky
- If the response of a zone is only a few pips, may indicate there are no more orders left and to break this zone
- Big zones 4h/1h must complete the full sell or buy pattern, in lower TFs this is not necessary and is BOS enough
- Action above baseline in supply = bulls are still in control, it must first break the baseline before we can look for sells, as
a true break of the bullish structure, vice versa for demand zone
- If price makes a new HH above baseline in supply zone and then reacts to 50's from where the move started, so this could
be a buy set-up in a supply zone (advanced)
- You can look for buys in a supply zone, but then it must have rejected the baseline clearly (advanced)
- After a powerful move through a zone, it is no longer fresh and you only leave baseline, no more orders left in this zone
- If the baseline is high supply zone or low in demand zone it makes this dangerous
- Do not look for buy trades in a demand zone if it is no longer fresh even if you see a pattern, edge is lower
- If 2 zones are close to each other it will often break the first zone and give a liquidity spike in the next zone
- When price is dropping in demand zone, price likes to make 2 or 3 lows close to each other, drop and small zig-zags
- M1 zones are most likely to hold at low volume and 2/3 candles making up a rejection candle and most likely to break
when high volume appears
- Price will not give 1 kiss with baseline and then leave like a rocket, can, but price will often come to test deeper
- After rejecting a weekly/daily/4h zone, look especially for buys or sells in the direction of these zones
- Demand will be empty if price like to make more price action below demand, vice versa for supply zone
- 16) If you are in a supply zone and you see strong bullish engulfing candles then there is a chance that it wants to break
this zone, also a sign that there are no more orders in the supply zone, vice versa for demand zone
- If price didn't left lower edge of supply zone, indicates that buyers are still in control
- When you can draw many demand zones on m1 TF then the bulls are in control of the price and vice versa

LOWER & HIGHER EDGES

- Price hits higher or lower edge first, followed by some retracement to then continue the ride to the baseline
- M1 supply on higher edge of h1 supply zone can be seen as a last protection shield
- If you are below the baseline of a demand zone and price makes a strong move down for example, then there was no
longer any interest in responding to this demand zone, so you can join sellers
- Price departs from a zone and often comes back one last time to higher edge of demand or lower edge of supply, if this
corresponds to 50's or m1 demand zone you can take safe buy/sell
- Always keep in mind that price can also strongly reacts on a lower edge of supply or higher edge of demand, there must
be clear BOS, don't solely focus on contact with baselines

EMA 17

- If you see a m1 supply/demand zones on the way if EMA17 is already sloping/diagonal, you can trade with the trend
- Try to trade with the trend as much as possible, what are your impulses and what are your corrections,
- Watch EMA17 well, flat is a potential reversal, rising is best buys and falling is looking for best sells
- If price quickly moves away from EMA 17 and then gives you 2 or 3 candles that form a rejection pinbar you can
immediately enter (advanced) or entry on 50's know that this is counter trend
- Follow direction of the EMA until there has been a clear BOS. EMA17 sloping/diagonal = already an edge in itself
(momentum)

LIQUIDITY POOLS

- Between 2 highs/lows close to each other there may be liquidity left to be found between these levels
- Liquidity pools on m1 are not as powerful as those on higher TFs, m15 is the most powerful
- A liquidity pool on m1 = extra confirmation if this coincides with 50's then it can be powerful
- Preferably low volume in these zones, indication that price has what it needed and does not want to go any further
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 - Know that price doesn't have to fill every pool right away and can do this later in the future
- The narrower the liquidity pools the better, good box should give reaction like boom, as tension spring
- Normally no fake outs are possible in here or a little bit, just a place to connect everything with each other
- Those pools are helpful to managing the position, where to close, how big pullback can we expect and were to put SL
- Liquidity pools are hard to break when they are tight and visited for the first time.

MITIGATION

- Price makes m1 supply/demand zone to get liquidity somewhere and then go the other way, once price has gone the other
way it will have to come back to the m1 zone to close the negative orders on BE
- Longer waiting till the mitigation is closed = stronger reaction
- These levels are high probability reversals.
- Best to see big bid/ask imbalance on candle, especially on top or bottom of the wave.
- If you see more buyers then sellers on the bar, big banks put a lot of money on market to push the price higher, but it
didn’t worked out so there are negative buy orders.
- Better and safer to draw whole candle were can be a reaction for negative buy/sell orders

FOOTPRINT CHART

- Bullish candles but with more sell contracts in it, can be turning point, be alert for this (intent of buyers and sellers)
- Ranging market is one big auction, which party can put more contracts to push the price in their direction
- Entry can be in the higher or lower part of the candle if imbalance is not in the middle
- Price made high on m1 TF but there were still many unfinished orders on top, price can make new HH after pull-back
- 0x0 is a candle with no contracts and you can see it as a GAP, move or reaction on this level is expected
- Institutional candles for taking a better price can be recognized by only sell or buy contracts
- Ranging candles with a lot of sell contracts in it can be an indication of a further drop because sellers are on top
- Footprint shows empty bearish candle with 0 buy contracts but only sell contracts, this is usually liquidity grab, so don't
be scared of one bearish candle. Market structure as a bigger view is important
- Several dojis with all 0 at the top and orders left at the bottom there is a very good chance that the price will follow the
open orders and thus fall, vice versa before rising
- Never blindly enter if you see a lot of buy or sell contracts can be absorption
- If buyers have high volume and delta in their favor and you see the price change to bullish structure, then bulls have
control over price
- Delta shows who is in control, must be a big difference to clearly see who is in control
- Candle you measured must have high volume, imbalance and clear positive or negative delta, trade in the direction of the
imbalance so you have higher probability for continuation, if it had low volume it could reverse

VARIA

- Leg out must be with volume otherwise this would be a move without 'fuel'
- Edge in ranging market is smaller, you see both buy and sell set-ups appear and then you better stay away from it
- Don't always want to measure everything with a fib, try to find some kind of logic, ask yourself why you measure
something, was it an important candle?
- Look closely if, after manipulation, price wants to come back to lower/higher edge for one last time and then continue the
ride
- Sell or buy pattern on HTF that engulfs previous supply or demand then you take the fib of the candle that was
responsible for this and then look at LTF to look for an entry
- Don't just measure every candle but just look for the candle that was responsible for BOS
- After one big move falling down or rally up, try to avoid the counter trade, because it can keep going that way
- Who needs more time to come back to 50's after impulse? Sellers or buyers in control?
- A failed LL or HH, can indicate a reversal, but not with a pennant, then it's a manipulation
- The safest pennants are on bullish rally, where on the middle is demand zone, important to see is the difference between
compression and rally, compression is more zig-zag
- If a m1 zone is tested for the first time and holds the price, there is a good chance that it will break the next time
- See how many shields are protecting the price (1h supply zone + liquidity pool + 5m supply zone = 3 shields)
- Wait for the institutions to indicate which direction they want to go and then wait for the first pullback to pick up
liquidity at 50's
- Wait until you have a clear direction were the banks want to go and try to follow them, always keep in mind were the
price could be delivered? (fresh supply or demand zones)
- Second reaction on 50's can be dangerous and your edge is also smaller, volume must be really low

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CHART PREPARATION

1) Check on ForexFactory if there is GBP or USD news during the day

2) Look what Asia session did and ask yourself if this price movements are important?
3) Check the daily candle from previous day and ask yourself if you can learn something from this candle?
4) Check for fresh supply/demand zones on 4h/1h/30m/15m/5m/1m zones that has a leg-out with good volume
5) Draw key levels on m30 TF while using POC and see which key levels are still valid and which are not
6) Draw daily highs/lows from the past three days
7) Look on m15 TF for imbalances close to the current price action
8) Look if there are interesting negative buy or sell orders which price can mitigate
9) Try to find out where we are on current price action

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