Syllabus

Concepts

- Manipulation
- Mitigation
- Key swings
- Origin of a move
- Liquidity bases
- Broken liquidity bases
- Raid bases
- Double confirmations
- Key swing reversal pattern
- Inside & outside range objectives (Targets)
Manipulation

What is manipulation and what does it look like?

Some traders may call it a range deviation, personally however, due to the way I view the market I
like to call the deviations a “manipulated move”. Essentially, in the market, obvious key swings,
double tops/bottoms, or even fake reversals will form. Time and time again, you will see price
disrespect these levels. Using my strategy, you will be able to notice which levels are likely to be
manipulated & take advantage of them once the manipulation occurs. (See example A & B)

- It is important to note that you should not be trading these moves on their own. You need to use
bases & broken bases + double confirmations to confirm the move is in fact manipulated. Identifying
the MM simply allows you to have a clearer read on the market, which should in turn lead to a
higher hit rate.

When does manipulation occur?

Manipulation occurs during the most volatile market conditions. Such as

- Session opens (London open, Asia Open, New York open)
- High impact news events
- Unexpected news / announcements

Why does manipulation occur?

There are many that do not agree with this, but I really do believe that all financial markets (Stocks,
indices, crypto, Forex etc.) are all manipulated. Do I think there is someone watching your $100
stop? No. But I do believe there are bigger players that work with market makers to fill orders at
certain prices. For those prices to be reached & their orders to be filled efficiently, price needs to
move a certain way. The EIEO strategy is simply a mechanical way to read when these players are
filling their orders & know how to react accordingly.
Example (A)

Example (B)
Mitigation

What is Mitigation?

The mitigation concept relies heavily on the idea that the market is in fact manipulated. Weather the
market is manipulated by a market maker, bank or any other kind of institution is irrelevant. What is
relevant however, is that this concept works & is proven to work with back & forward tested results.

Why does the mitigation strategy work?

Think about it like this, imagine you have a key swing low. Below that low, the larger majority of
traders will either have their sell stops below the low (because they are trying to buy support with
their stop right below the low) or sell orders below the low (because they are trying to short a break
of support). Now that we know that liquidity resides below that low (In the form of sell stops and sell
triggers) we can assume that price will run below the low to collect the liquidity. The same person /
entity that wants to fill their long orders below the low, also needs to sell to push price below the
low. So if the bigger players are selling just so they can buy later on, how do they manage their
positions once price starts to break to the upside? To put it simply, they mitigate their positions. This
is where the Raid base or “Mitigation base” comes from. (See examples C, D & E)

Example (C)
Example (D)

Example (E)
Key swings

What is a key swing and what does it look like?

A key swing is a significant price movement that breaks a previous S/R level or structure.
See example (F)

Example (F)
Origin of a move

What is an origin?

The origin of a move is simply the initial stages of a swing. Identifying the origin of a move is
important as it is the only zone to which you should be looking to enter your positions. (See example
G & H)

How to mark out the origin

Simply use a fib tool and anchor one side to the high/low of the significant swing & the other side to
the beginning of the retracement you are looking to trade.

How to use an origin

Ideally, before entering any position using the methods explained in this strategy, you would need to
see a retest of all bullish / bearish bases inside the leg you are looking to enter. By doing this, you are
ensuring that all levels / orders have been tested / mitigated which will in turn, increase the chances
of price heading in the intended direction. If you do not enter near the origin of the move, more
often than not, price will stop you out only to then reverse higher & move in the direction you
thought it would. (See example I)

If the levels inside of the origin have already been clearly tested after the breakout / expansion /
broken base has formed, you may look to enter on newly formed legs as price continues its
expansion.

Example (G)
Example (H)

Example (I)
Liquidity bases
What is a liquidity base?

- A down candle before a significant expansion upwards that preferably breaks market structure.
(Bullish base) (Example J)

- An up candle before a significant expansion downwards that preferably breaks market structure.
(Bearish base) (Example K)

- The liquidity base you choose to trade should be at the origin or ‘start’ of a swing.

- The liquidity base is valid as soon as you see an obvious break in structure and expansion away
from the base

- Many traders will use the high / low of a key swing as support or resistance. Personally, I use bases
and broken bases. So if price is constantly forming bullish bases & breaking structure to the upside,
this tells me that price is bullish. Then once we return to the bullish bases, I treat them like S/R levels
and look to enter.

- It is important to note, that all brokers will offer varying price feeds. Meaning, if the Aussie Dollar is
sitting at 1.112 on broker A, it may be sitting on 1.115 on broker B. Ensure that you take this into
account when entering a trade, picking a base as well as placing your stops.

- Bases that are tested hold much more merit than bases that have already been tested. Although I
do not suggest placing blind limits at untested bases, if a clear setup occurs at the untested base it is
likely to play out. (Example C)
Example (J)

Example (K)
Broken liquidity base

What is a broken liquidity base?

- The broken base makes up almost the entire strategy. Please go through every chart example &
video explanation so you can properly identify the high probability broken bases over the low
probability.

- Broken bases can be viewed as a break in structure and confirmation of a manipulated move.

- Makes up the entire leg that swept the level BEFORE the structure was broken.

- Bullish example (Example L)

- Bearish example (Example M)

- When trading a broken base, you should always be asking yourself the question “Am I witnessing
obvious manipulation? i.e., Obvious sweep of Asia’s low around London open. You should also ask
“Am I trading within order flow?” (Study Chapter 2 – manipulation & the Context subject)

- Broken bases should NOT be used to trade or find reversals. After multiple confirmations you can
then start looking at making a trade (See double confirmation explanation in Chapter 2)

- (Bearish example and vice versa for a Bullish example) When trading a broken base without the use
of a raid base, you should enter at the low that swept the high with your stop loss above the high.
(Example E)
Example (L)

Example (M)
Raid candle or raid base

What is a raid candle?

A raid candle is simply a candle that sweeps a level. For example, an hourly swing low forms on
Monday, on Thursday price then sweep the hourly swing low & then continues to rally to the upside.
A raid candle would be the candle that swept the swing low that formed on Monday.
Raid candles are all fractals. The timeframe of the candle you choose should depend on the
timeframe of the swing that was swept. For example, if a swing low formed on the 15minute chart &
price then sweeps that swing low, you should be looking for a raid candle on the 15minute chart or
lower. Another example would be if a swing low formed on the 4hr chart, you would not be looking
on the 5minute chart for a raid candle. (See example N & O)

- Raid candles should be used in conjunction with broken bases.

- Rather than entering at the low of a broken base (Bearish example) you can use the raid base to
tighten your entry.

- Enter at the very low of the raid base with your stop loss right above. Making sure you’re leaving
room for your brokers spread.

- A raid base is only valid if it exists inside of a broken base. Therefor, if you wish to trade a raid base,
you must ensure you are following the rules / guidelines of the broken base.

- Only use a raid candle over the low of the broken base IF the raid candle has not yet been tested.
Example (N)

Example (O)
Double confirmation

What is a Double confirmation?

A double confirmation exists in 3 forms. Essentially, double confirmations stem from the idea that
you should always wait for multiple confirmations of confluence that price is indeed going to react a
certain way. So for example, rather than leaving limit orders at an untested base, you would wait for
price to reach into the untested base & form a broken base before entering. This same concept
applies to broken bases & S/R levels. (See examples)

- A double confirmation of a base. (Example P)

- A double confirmation of a broken base. (Example Q)
- A double confirmation of a support or resistance level. (Example R)

Example (P)
Example (Q)

Example (R)
Key swing reversal pattern

What is a KSRP?

The key swing reversal pattern is a way of determining if price is ready to change its direction. Simply
put, the KSRP is a Broken base below key lows or above key highs.

This pattern is made up of 2 parts.

1) A key swing or swings that has been swept.

2) A broken base that forms below the swing(s) (Bullish) or above the swing(s) (Bearish). (Example S)

- Do not trade KSRP’s on their own. The purpose of a KSRP is to help identify a possible trend change
or to confirm a trend that has already started.

- If you see a double bottom + a KSRP that formed below it + multiple bullish double confirmations
after the KSRP that break structure you can be confident in the trend.

- The timeframe of the KSRP that forms the reversal must be relative to the timeframe of the trend
prior to the reversal. i.e., A 15min KSRP for a 15min – 1H trend

Example (S)
Inside & outside range price objectives (Targets)

What is a price objective?

A price objective is an obvious destination for price to be heading towards. There are multiple kinds
of price objectives. I have listed them below.
- Double tops
- Double bottoms
- Untested bases
- Untested broken bases
- Untested raid base

What is an inside range price objective?

An inside range price objective is simply a price objective inside a range rather than outside. So, for
example, a double top would be an outside range objective as it lies on the outside of a range. An
inside range objective however would be a untested raid base as it lies on the inside of a range.

Inside range objective (See example T)

Outside range objective (See example U)

Why choose inside range objectives over outside range objectives?

The answer to this is simple. When picking targets, it only makes sense that you pick a price point
that is likely to be hit. So rather than choosing a double top (Outside range objective), you could
choose the untested bearish base right before the double top (Inside range objective) as it is more
likely to be hit.

When to choose an outside range objective over an inside objective for your target

There is only one circumstances as to which you should choose an outside objective over an inside
objective.

- If the double top (Outside objective) is resting right below an untested higher timeframe base.
Normally when we see this occur, it is a clear sign that price will be seeking liquidity above the equal
highs & start to distribute inside the higher timeframe base. So, when you see this setup, you are
better off increasing your target & expectancy for the trade.

What makes an objective obvious?

Do not over-complicate this process. Finding a target should not be difficult. One thing you need to
make sure of however, is that you are not over-extending your expectations. Once you see a broken
base form, look for an obvious untested base / bb / raid base or double top / bottom. If the broken
base is obvious & the target is obvious, take the trade. This will be explained further in the ‘Context’
tutorials.
Example (T)

Example (U)