Nasdaq Level 3 Behavior MAAW

Key Trapping Techniques
• False Breakouts (above M or below W pattern)
• Session Open Spikes (especially NY open or London open)
• News Traps (spike during news, then reversal after)

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3. TIMING: WHEN TO EXPECT LEVEL 3 MOVES



Look for session overlap (London/NY) — that’s often where the Level 3 “move away” happens.

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4. WHAT TO LOOK FOR

Here’s your sniper checklist:

Before Entry
• Clear M or W pattern (preferably over 3 sessions)
• 3 levels or signs of MM cycle (Level 1, 2 already done)
• Price at ADR High/Low
• EMA Alignment (5/13 cross for confirmation)
• TDI Confirmation (green cross red, volatility band bounce)
• High Volume Candle showing shift
• Price is not at mid-range, but at extremes

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5. WHAT TO AVOID
• Entering during consolidation
• Trading Level 1 (accumulation = trap zone)
• Trading directly at news time (wait for spike/reaction)
• Ignoring ADR (if ADR is already complete, expect reversal)
• Entering too early before confirmation candle
• Big stop losses — you want sniper entries with tight stops

Step 1: Mark the Previous Day’s High/Low
• Use ADR to mark extremes
• Expect stop hunt near these levels

Step 2: Identify M/W Forming
• Look for 3 peaks/bottoms
• Wait for the final push and reversal

Step 3: Watch Session Opens
• London/NY open is often the trigger zone
• Observe price action closely 15–30 mins after open

Step 4: Wait for Confirmation
• Engulfing / Pin bar / Rejection candle
• 5 & 13 EMA cross
• TDI green crossing red & bouncing off band or base
• Align with 800 EMA and 50 EMA direction

Step 5: Enter the Trade
• Enter at or near confirmation candle close
• Stop loss: Just outside the trap wick (10–20 pips)
• Take profit: 1:3 or ride with trailing stop

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7. BONUS: HIDDEN TRICKS
• Draw M/Ws on the 5M but validate them on the 15M
• Use the 800 EMA to see where the overall bias is
• Mark the 1st leg of M/W — wait for trap above/below
• Timing matters more than signals — don’t force entries outside session windows


Disclaimer:
This idea is for educational and informational purposes only. It is not financial advice or an investment recommendation. I do not offer any financial services or paid mentorship. Always do your own research before making trading decisions.