Master trading fundamentals and the concepts behind VLM.
Price action is the movement of a security's price over time—the foundation of all technical analysis. Instead of lagging indicators, price action traders read raw movements: candlesticks, S/R, trends, and patterns.
Key Insight: Price reflects collective market psychology.
Each candlestick shows: Open, High, Low, Close. Body = open-to-close range. Wicks = extremes.
Key Insight: Long wicks = rejection. Central to liquidity sweeps.
A Doji forms when open ≈ close, creating a cross shape. Shows market indecision—neither bulls nor bears won.
Key Insight: Dojis at key levels often precede reversals.
An engulfing pattern occurs when a candle's body completely "engulfs" the previous candle's body.
Key Insight: Engulfing at S/R = strong reversal signal.
Single-candle reversal patterns with small bodies and long wicks.
Key Insight: Long wick shows rejection. Context matters—check trend.
Support = price floor. Resistance = price ceiling. These are zones, not exact lines.
Key Insight: Broken S/R flips—resistance becomes support.
Trends are defined by swing highs and lows. Uptrend = Higher Highs + Higher Lows. Downtrend = Lower Highs + Lower Lows.
Key Insight: Break of Structure (BOS) signals trend change.
Connect swing lows (uptrend) or swing highs (downtrend) to draw trendlines. Parallel lines create channels.
Key Insight: VLM Engine 2 trades trendline breakouts.
Higher timeframes show trend direction. Lower timeframes show entry timing.
Key Insight: Trade in direction of higher timeframe trend.
Volume confirms price moves. High volume = conviction. Low volume = weak/fake move.
Key Insight: VLM uses volume surge detection to validate signals.
Triangles show consolidation before breakout. Three types:
Key Insight: Measure triangle height for target after breakout.
Classic reversal pattern: Left shoulder, head (higher), right shoulder, neckline.
Key Insight: Neckline break confirms. Measure head-to-neckline for target.
"Killzones" = peak institutional activity windows:
Key Insight: Focus trading during killzones.
Understand how markets move together:
Key Insight: Use correlations to confirm bias and avoid overexposure.
Smart Money = institutional traders (banks, hedge funds) who move markets. They need liquidity to fill large orders, creating predictable patterns.
Key Insight: Trade with institutions, not against them.
Liquidity = resting orders (stop losses, pending orders). Price is drawn to liquidity pools.
Key Insight: Liquidity is the magnet. VLM maps these zones.
Order Block = last candle before a strong opposite move. Shows where institutions placed orders.
Key Insight: Order blocks = institutional footprints.
FVG = 3-candle pattern with gap between wicks. Price moved too fast, leaving imbalance.
Key Insight: Markets often return to fill FVGs.
Price briefly breaks a level, triggers stops, then reverses sharply. Institutions use this to fill orders.
Key Insight: VLM Engine 1 detects these sweeps.
BOS occurs when price breaks a significant swing high/low, confirming trend continuation or reversal.
Key Insight: Wait for BOS before trading reversals.
CHoCH = first sign of potential reversal. Price breaks a minor structure level against the trend.
Key Insight: CHoCH alerts, BOS confirms.
Every swing divides into premium (above 50%) and discount (below 50%).
Key Insight: Buy discount, sell premium.
OTE = 62-79% Fibonacci retracement zone. Sweet spot for entries after displacement.
Key Insight: OTE + OB + FVG = High probability.
Inducement = price patterns designed to trap retail before reversal.
Key Insight: If it looks too obvious, suspect inducement.
Displacement = strong, aggressive candles showing institutional intent. Creates FVGs.
Key Insight: No displacement = no trade.
Breaker = failed order block. When OB fails and price breaks through, it becomes a breaker—now acts as opposite.
Key Insight: Failed levels transform, don't disappear.
Mitigation = where institutions look to recover losses from failed positions.
Key Insight: Institutions don't forget their losses.
The daily cycle of institutional activity:
Key Insight: Expect fake moves early, real moves later.
VLM is a systematic trading indicator that identifies high-probability setups using two complementary engines.
Key Insight: Systematic approach removes emotional trading.
Engine 1 identifies and fades institutional stop hunts at key liquidity zones.
Key Insight: Enter after manipulation completes.
Engine 2 captures momentum on confirmed trendline breaks.
Key Insight: Engine 1 fades, Engine 2 trends—dual coverage.
Each VLM signal provides complete trade setup:
Key Insight: Review chart before entering. VLM signals, you decide.
Get notified when VLM generates signals:
Key Insight: Alerts notify, but always confirm visually.
VLM uses multiple filters for high-probability signals:
Key Insight: More confluence = higher probability.
VLM works out of the box, but can be tuned:
Key Insight: Default settings are battle-tested. Change cautiously.
VLM is a tool, not a replacement for skill:
Key Insight: VLM + your analysis = best results.
Never risk more than 1-2% of account per trade.
Key Insight: Survival > profits. Size accordingly.
Calculate position size based on risk and stop distance:
Key Insight: Smaller stop = larger position (same $ risk).
RRR compares potential loss to potential profit:
VLM targets 2:1 to 3:1 RRR.
Key Insight: You can win 40% of trades and still profit.
Record every trade for improvement:
Key Insight: Weekly review reveals your patterns.
ATR (Average True Range) measures volatility. ATR stops adapt:
Key Insight: VLM uses ATR stops automatically.
Don't go all-in/all-out. Scale progressively:
Key Insight: Scaling locks profits, lets winners run.
Sitting out is a position. Avoid:
Key Insight: No trade > bad trade.
Set hard limits to prevent spiral:
Key Insight: Limits protect you from yourself.
Understand drawdown math:
Key Insight: Losses compound faster than gains.
Master your emotions:
Key Insight: Systematic trading (VLM) reduces emotional interference.
Every trader needs a written plan:
Key Insight: No plan = gambling.
Test before trading real money:
Key Insight: Backtest builds confidence and reveals flaws.
Practice without risk before going live:
Key Insight: Demo success ≠ live success, but it's a prerequisite.
Hidden costs of trading:
Key Insight: Trade liquid markets during active sessions.
Broker matters. Consider:
Key Insight: Cheap spreads mean nothing with bad fills.
Two approaches to high-impact news:
Key Insight: Unless you specialize, avoiding is safer.
Get early access to VLM and start identifying high-probability setups.
Get Early Access