Traders Reality

Guidebook V5

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!
 How to exploit the 50 ema and 200 ema moving average!

What you need to understand!

what is what?
- 50 ema is the light baby blue line with the blue zone around it,
it's our main moving average.
Don't forget it's a zone,
- the 200 ema is the white line that counts as support and a
indicator

What is important about the 50 and 200 ema’s?

- The way the ema is pointing, (upwards, downwards)
See it as a clock, if the ema is pointing to 1 oclock and 2 oclock you got
upwards momentum If the ema is pointing to 4 oclock 5 oclock you know you
got downwards momentum
- Ema’s are also resistances and supports
- When the ema’s cross, it a change of momentum
- When price moves away from the moving average so do the moving
averages from each other.
- The wider the price is away from the ema’s the better the retrace

When does a W form?

- always at or below a 50 ema moving average

When does a M form?

- at or above a 50 ema moving average

When does the market get interesting?

- when the price of the market moves away from the 50 ema.
NOT when its on the 50 ema for a longer time

Why is it interesting when the price moves away?

- This is because at one point the price needs to get back to the 50 ema
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Example!
A W formation always forms below or on the 50 ema, you can see after
the W has formed and its testing the 50 ema. lso keep in mind that the
candle has to close above the ema to get an upward momentum!

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TRADING IS YOUR OWN RESPONSIBILITY!!
What time zones do we look at for the pattern and which for entry’s

For projections for the pattern, we use the 1 hour timeframe. Sometimes the higher
time frames, and for patterns in patterns we go to the lower timeframe. What do we
need to know?

The time frame we look at to find the pattern is the 1 hour time frame, this time frame
is the most accurate.

The time frame we search for when we search for entries and exits is the 15 min time
frame. this gives a better sight on the chart from closeby, and gives us the possibility
to get out in time!

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ADR explanation!
The ADR is an indication of the range that price can travel through the trading day...A new
ADR is achieved at the start of every new session. The ADR is simply the highest point price
can travel and the lowest point it can travel. Although price can exceed the ADR, it is used
as a measure of the volatility that price can travel in a particular direction for the whole
trading day…

NOTE: if price does exceed its ADR then a retrace is inevitable...If it is not achieved in
the current session then it is likely to be done in the next…
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key notable areas!

key notable areas are psychological resistance and supports, what does this mean? Well,
prices like full numbers like a 1000 dollar, 50000 dollar etc etc, are really strong key areas.
half numbers like 1500, 2500, 5500 etc etc are still strong resistances but not as strong as
full numbers. Then we have quarter
numbers, these are medium resistances,
these are numbers like 1250, 2250,
2750, 5250 etc etc, people take their
profits at these key notable areas, and
market makers play around those areas
to trap liquidity!!

Market makers like to build their shorts

above key notable areas so they can get
the highest possible fill of price so that when they start the move, they are getting the most
out of the area they have accumulated and the psychological effect of traders looking at
these whole half numbers is shown by the aggressive move that occurs when price hits this
zone...Take the image above as an example, notice how price ranges and then aggressively
breaks down straight through the 40k mark to the downside
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Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!
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 How to predict the pattern!!

Now you understand the Moving average and you are able to predict an
upwards momentum and a downwards momentum, Congrats!

Now it's time to learn pattern projecting!!

First of all you need to understand what the pattern is that the market makers
are using:

This is the weekly pattern that we are searching for!

Keep in mind W’s and M’s are not always this clean.
They diversify from sizes to angle’s.

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The top of the weekly pattern!

At the top of a M pattern it's most likely that the

second leg upwards in the pattern will not be higher
than the first leg upwards! This is to keep longs
trapped, this often happens after a green candle
sticks.

Don't be afraid to miss out on an opportunity. Try to

find the weekly pattern in the game and wait for
confirmation. If a M pattern is forming, it will rise back
up!! Wait for the confirmation on the second leg.

One other thing, keep in mind that at the beginning of

a M formation, there are most of the time 2 to 3
pushes to the high with at least 1 candle with a high
volume sign, to make sure to trap people who think
they're missing out to go long.

NOTE: a reversed head and shoulder is a variation from the M pattern

TRUST THE PATTERN
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 Upwards 3 levels Z pattern!

After a moment switch that is confirmed after a W pattern, you will start
seeing a Z pattern, going upwards. This pattern is best seen on the 1
hour chart.

We can sort out this stage of the pattern in levels. We

got 3 levels in total, 3 lines going upwards. Make sure
you found the right pattern,

(Tip: Search for the previous weekly cycle, this will

give you an indication if your W or M has been right or
wrong)

90% of the time the retrace from lvl 2 wont go under

the previous rise lvl 1, this is the same for lvl 3 not
going under lvl 2. if the pattern does not complete or
get a confirmation, then you're searching for another
W or M pattern, and the pattern is reset!

If the price has not retaced to the 50 ema, then we are

still in the same level that has been ongoing.
if just 1 wick on the 1 hour touches the 50 ema, then
this doesn't mean that we cleared a lvl, remember fast
move is a false move, what we want to see is a solid
retrace to the 50 ema
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The W pattern
The W pattern is almost the same like the M pattern but then reversed,
what will happend at the beginning is that you get a fast movement to
the downside of the ema’s, This is when the first leg is created, The
second leg of the W is almost always higher than the first leg, this is to
keep people stuck in their shorts.

Do not trade on the first leg, or the retrace of the first leg, always wait
for a confirmation from the second leg, at the beginning of a W pattern
there are mostly a lot of red candle sticks, this gives you an indication of
a fast drop of volume, so as momentum.

or if you really want to know when it's going up, wait for the retrace, and
look at the opportunity if it rises after the retrace.
Confirmation is KEY!!

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 The market Makers Manipulation!!

Next up is the market maker's manipulation, there are a few things you
need to know…

On the weekends and mondays, market makers are making the market ready for next week,
this means the price will not always follow the pattern, and therefore it's dangerous.

That's why the rule is, don't trade on the weekends and mondays!!
The market makers are out making money!!

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Example!!

This is the Monday evening, what we can see is

that they brought the price down to be ready for
the week! On monday night they tapped the low
4 times, what does this give an indication?
that the price will go up

What happened the next morning? Market

makers trapped enough liquidity, and moved the
price up! Always try to think like a market maker!!
If you understand them, you understand the
market!

What you can see? it's also under the 50 ema,

what do we know about the ema? Price always
comes back to the 50 ema!!

NOTE: watch this video on youtube: This gives you a sight into the MM’s mind,
Seller’s are in control!!
https://www.youtube.com/watch?v=chE2OEToxOg
___________________________________________________________________
You need to remember!! The 1 hour time frame is our MAIN Time frame,
if you only trade on the 15 min time you won't always see the bigger
picture.
______________________________________________________________
This is not financial advice, this is to understand the system, The trades
you make are your own responsibility, I am not responsible for any
losses you make. You and only you click on the Buy, short, long button!!
_______________________________________________________

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TRADING IS YOUR OWN RESPONSIBILITY!!
 When do we determine an entry!
When not:
1. When the ema is hovering around the 50 ema, (going up and down and up and
down etc)
2. When there's a big announcement, like ada getting into coinbase, A lot of
people will long on when a big announcement is made, If the price would go
up Market Makers would have lost a lot of money, and as you know MM's
influence on the price, they don't like losing money. With all the hype around
that coin, everybody thought ada was going to the moon, so they longed!! If
the Market makers would have put the price up they would have to pay a lot of
money!! So they grab their liquidity from the people that went long!
3. Do not go with the hype, don't go against it as well, wait for confirmation, what
will happen is when a hype happens people start buying, this is a perfect
moment for market makers to start playing their game and get their longs at
lower prices!!

possibilities to make an entry:

1. After a W formation is formed, and the pattern plays out WITH a confirmation
on retrace!
This part is KEY!! Remember we are looking for an aggressive move out
of the zone!
2. If not a single one of the “when not” is present.
3. When everything multiple indications point to a long run or a short run
4. Wait for High and Low of the day to settle in, then make entries based off of
the move toward the EMAs relative to those high/lows.
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Example!!

_________________________________________________________________________
Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!
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 When do we determine an exit!

For an exit, we will look for a simple rule:

if after a high run, we wait for a red candle to be closed below the 5 ema
MA, this means we need to be cautious about our trade turning the
the wrong way. If we see a candle close 13 ema, then this gives us a sign that
we might be going for a downtrend or a M formation being made and it's time
to get out!! what we expect after the candle closes below the 13 ema, is a
move back to the 50 ema!
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example!

We exit here when the red

candle closed below the 5
ema and 13 ema

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A few pointers!
First of all, if a price is in its momentum upwards or downwards and there is no
indication that the momentum is changing, don't take a trade for the opposite way, I
see a lot of people doing that, and not understanding why they lost their money…
And then do it again. Remember there will always be better opportunities.

Second part is waiting for the confirmation to play out!! A lot of people in the discord
are already going long or short on the first or second leg of a W or M. If you don't
wait on the confirmation of the system, the losses you take and the profits you make
are way worse!! This system is all about letting MM’s make their first move!

___________________________________________________________________

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!
 MINDSET!!

Mindset might be the most important of all of the things, this game is not
about making big money fast, but staying in the game for as long as you can.

Everyone is in this game to make money, trading is about creating wealth and
this game is the hardest and easiest way to make money… So take your time
to analyse the charts, make your own system work. It's not about copying
traders, it's about learning your own working way to trade profitably!!

The thing about trading is listening to your feelings, you want to gain
maximum out of your trades, and therefore won't listen to the indications that
are right in front of you, you go in with a plan, a price prediction, a price
direction and a strategy to exit your trade!! Don’t think just because on an
impulse you think you need to get out because of a red candle. Many people
have a hard time resisting this pulse, but once they learn how it works, they
look at the charts in a different way. They got a plan, you took your time to
notice all the indications, so trust yourself!!

Another thing that is important is not listening to other people, make your own
predictions. I can't tell you how many times I made a wrong move on an
impulse from the people in the discord, friends that say this will do that, and
all the other distractions. It's your responsibility if you trade, so why dont you
make your own plan!!

As tino said in the stream, 80% of the people don't care about the problems
you have, and the other 20% are glad you have them… In this game it's you
against you!!

You need to understand that there are always great moves to step in on, don't
be greedy, if you miss 1 good entry point, don't jump in just to try to not miss
out on move, then you're doing it wrong build your position, wait for a good
opportunity, they will always pass by!

Be aware of the eternal battle going on in your mind, between fear and greed!
Try to make your decisions as dispassionately as possible!! You can’t defeat
them, but you can balance them. Don’t let fear pull you out of a trade that
would have been profitable, and don’t let greed push you into a trade that
never will. Accepting that you were wrong is a must, if you refuse to close a
trade because of this reason, then you're about to get a hard time trading in
profit!! How do you learn if you don't see what you have done wrong? you only
block your own way to profits!!

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!
 Pivot Points and the M zones!!
So looking at the TR indicator you're looking at multiple resistances and supports,
the M1 to M5 but also the R1 to 3 and the S 1 to 3, This is how these resistances
and supports came to be!! These supports and resistances are also projection
zone’s M1→M3, M2→M4, M3→M5

So first we need our pivot point, this is the calculation we use for it:
pivotPoint = (dayHigh + dayLow + dayClose)/3

now that we have our pivot point we can start calculating the R1/3 and the S1/3
for these points we use these calculations:

pivR1 = (2 * pivotPoint) - dayLow

pivS1 = (2 * pivotPoint) - dayHigh
pivR2 = pivotPoint-pivS1+pivR1
pivS2 = pivotPoint-pivR1+pivS1
pivR3 = (2*pivotPoint)+(dayHigh-(2*dayLow))
pivS3 = (2*pivotPoint)-((2*dayHigh)-dayLow)

Now that we know how the R1/3 came to be and the S1/3 we continue with our
daily M zones, these Zones are being calculated by using the R and S zones.
The calculation follow like this:

m0 = (pivS2+pivS3)/2
m1 = (pivS1+pivS2)/2
m2 = (pivotPoint+pivS1)/2
m3 = (pivotPoint+pivR1)/2
m4 = (pivR1+pivR2)/2
m5 = (pivR2+pivR3)/2

Keep in mind that these are resistances and supports, although this a help
item for trading, it doesnt mean its always accurate and therefore you need
more than 1 information point to make your decision:

Much thanks to Infernix to explain these calculations, and how the zones came to
be!

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!
 Reading candles and wicks!

Traders reality has a good video about reading candlesticks, that is going
great with this summarization:
https://www.youtube.com/watch?v=_UOzCBU0IRg&list=PLbBPPTpCLCmS Hvj
wiIgwAGPA-pXs312c&index=8

If you are asking yourself why does the pattern play out, why do market
makers move the price, then are candle sticks so important? So what do we
know:

1. We know the red candle stick implies that the market maker is building his
longs, he never buys at the highs, and sells at the lows. The good thing about
this is that we need him to behave this way, so we can ride along beside him!
Notice when a candle changes color, this changes as it comes below the
the moving average,

2. We know the green candle stick implies that the market maker is building his
shorts

3. We know that a stopping volume candle is a small body, and a wick, the
bigger the wick the better the power of the stopping, remember a stopping
volume implies at that moment in time

4. a purple candle implies that volume is starting to rise,

When you see green candle’s appear at the high’s then you have to ask yourself
what is going on
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So look at this part of a chart, we can see

notable volume coming in (red candles),
this means market makers are building their
longs at lower prices.

we see a purple candle coming in, this

implies volume is starting to rise, but if you
look at how strong it closes, then you know
MM’s are not ready yet to move price to the
upside.

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Then we see stopping volume coming
in, a small body with a big wick to the
downside, their pushing the short orders
but immediately going for their liquidity.

MM’s are getting ready to move to the

upside, so what they do they give retail
traders 1 more reason to step in (big
gray candle to the downside) and then
reverse price back up

Now we see green candle sticks appear,

they are recovering the red candles on
the left, but right after they do that they pull the price down again and recover the
green candle’s, why? because they are not ready to move prices up again. If you
look at the height of the red candlestick and the height of the wick of the green
candlestick you see they are on the same line.

Then we start seeing stopping volume

coming in, as retail traders went in on those
green candles and they think price had a
resistance at the 50 ema, you see wicks to
the high and notable volume coming in
(Red candles) now market makers favor
lower prices,they are building longs at lower
prices and in the same time making a run
for the Liquidity of those longs at the green
candle

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TRADING IS YOUR OWN RESPONSIBILITY!!
 PcShed leverage Strategy guide

As we know PcShed is more of a short term trader. The strategy he uses builds a
position on the smaller time frames; typically he’s looking at a time frame between
the 1 min to the 15 min charts.

So what do we need to understand about leverage before trading with

this strategy?

First, it’s important to understand that when using leverage you’re borrowing
money from your broker, allowing you to enter a larger position than what
would otherwise be available to you from your account’s balance. As an
example let’s say that your broker offers a leverage of 1:500. This means that
for every $1 of capital in your account, your broker will give you $500 to trade
with. While this may sound appealing, and can have the effect of multiplying
potential gains by a large margin, it’s important to be aware that this will also
amplify any potential losses from relatively small price changes. When
entering a leveraged trade, it is extremely important to understand your level
of risk and to use caution accordingly.

Second, there are 2 methods of margining: Cross and Isolated.

Cross Margin shares excess margin from your account between all
open positions to satisfy maintenance margin requirements. When
needed, a position will draw more margin from the total account
balance to avoid liquidation.

Isolated Margin is assigned to a position and is restricted to a certain

amount. If the margin falls below the Maintenance Margin level, the
position is liquidated.

Third, Coin-M trading allows you to enter a position using coins rather than
USDT. This offers the benefit of being able to avoid the high fees associated
with trading crypto currencies using US dollars. While using Coin-M, you may
only enter a position with the coin you’d like to trade. This means that if you
wanted to enter a position on ETH you would have to buy or sell using ETH
rather than USDT.

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 So what is PcSheds strategy for leverage?

The strategy PcShed is using is all about building your position at lower prices to find
the perfect entry point! What this means is that when you think price is to move up or
down, you start searching on the lower time frames for signals for it (patterns in
patterns). Once you enter a trade and the price turns into the red you search for
another point, then put in another entry. By using different leverage you can lower
your entry price to the point you wish for, This means that my first trade is 1x my
second is 5x then my third 10x, this will lower your entry point, but also closes your
margin closer to your price. Make sure you have enough money left so save your
trade

so let's say you longed and had a bad entry, you entered on a wrong position, but
you only went in with a 1x, you start to turn into the red, and think you took a wrong
position, you let the price move out a bit more until you think: “alright i think it might
go up now” then you enter with a higher leverage on a lower price, and this will move
your entry point down!! This also means your margin comes up since you upped
your leverage.

So this entry price didn't work out again and it's going down more, and you see
another opportunity, you enter again with higher leverage, this will lower your entry
price again, but also raise your margin. So now the trade is turning to the upside,
you’ve built your long position to a good entry point, and the price crosses this point
to the positive, now you're in a good position, with more contracts on a lower entry
point and price starts rising, you see it going up and up, and you start taking your
profits, now from those profitts you take 50% for margin control and the other 50%
you use to buy more contracts. Now you're growing your stash of coins. This is how
it mostly works.

Now remember, never go in with your full amount of your wallet, if you go in
with such a big amount, you won't have any money left to lower your entry
point or lower your margin. And market makers will go after your money when
something happens!!

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!
Example!!
So say you are short, you search for the best entry, you finally find the spot
you want to place your first entry.

your first entry!

So you placed your first entry, this entry is on a 1x

leverage, why? To find the right position, we don't
wanna give the MM’s any money while we search
for our entry!!

Now you see the price continue going in the red, but you still have only a 1x so
there's nothing wrong with going in the red.

Second entry!!

So after you see the movement

going up and see indications for a
downtrend, you place your second
order, this with a bit higher leverage
than your first entry.

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Now the price continues to go up, but we are still in a good trade, why? We still
have money that we can put into our entry point and control our margin.

So we start searching for our next entry point to up our entry price even more.

Third entry point!!

So after waiting again, and next indications

come in from a downtrend, (keep in mind you
need to know the system!!) so we enter our
third entry point.

So now we have found a way to make our

entry further up than initially thought the
price would go! We got a good entry now
and we see the price going down, we
come in the green, or even make up our
losses we made before!! you can go
further into the time frames, to see what
price is going to do.

This is what market makers do as well, well

price is rising their selling, and when price is
dropping their buying!

Made by Skipper DISCLAIMER - NOT FINANCIAL ADVICE!!

TRADING IS YOUR OWN RESPONSIBILITY!!