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PDF3 Manipulation Algorithm

The document outlines a manipulation algorithm used to predict price movements in the gold market (XAUUSD) based on institutional trading patterns during the Asia session and the London open. It details a mathematical daily bias model and a three-filter manipulation detection system to identify potential trading opportunities. The algorithm emphasizes the importance of backtesting and caution before live trading, recommending a thorough verification process over a minimum of six months.

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0% found this document useful (0 votes)
13 views6 pages

PDF3 Manipulation Algorithm

The document outlines a manipulation algorithm used to predict price movements in the gold market (XAUUSD) based on institutional trading patterns during the Asia session and the London open. It details a mathematical daily bias model and a three-filter manipulation detection system to identify potential trading opportunities. The algorithm emphasizes the importance of backtesting and caution before live trading, recommending a thorough verification process over a minimum of six months.

Uploaded by

saukhwahisaa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

MANIPULATION ALGORITHM

Asia Session + 3 Filters + Daily Bias

Decode what institutions do before London opens every day

XAUUSD | Private Research | Backtest Before Live Trading


SECTION 1: THE CORE CONCEPT
Every day on Gold — institutions follow a predictable mathematical sequence. They manipulate price during
the Asia session to hunt retail stop losses. Then they execute the real move at London open in the
OPPOSITE direction. This algorithm decodes that sequence using three mathematical filters.

Why This Works Retail traders park stops at obvious highs and lows. Institutions know exactly
where those stops are. They push price to those levels during low-liquidity Asia
hours — collect the stops — then reverse hard at London open when liquidity
returns. This is not random. It is a consistent mathematical pattern.

Retail Trader Sees Algorithm Sees


Random price movement in Asia Deliberate manipulation to hunt stops

Confusing reversal at London open Predictable real move after manipulation

Stopped out on correct bias Entry opportunity after manipulation completes

Unpredictable market Mathematical sequence every single day

SECTION 2: MODEL 0 — MATHEMATICAL DAILY BIAS


(MDB)
Before any analysis — run MDB every morning. This tells you which direction to trade today. Takes 5
minutes maximum.

Step 1 — CPR: Close Position Ratio


CPR = (Prev Close - Prev Low) / (Prev High - Prev Low) x 100

CPR Result Meaning Score

Above 70% Price closed near top — Bullish +1

30% to 70% Neutral close 0

Below 30% Price closed near bottom — Bearish -1

Step 2 — TDMS: Three Day Momentum Score


TDMS = Day1 Score + Day2 Score + Day3 Score (Bullish day = +1,
Bearish = -1)

TDMS Signal Score

+3 or +2 Strong Bullish momentum +1


+1 Mild bullish 0

0 Neutral 0

-1 Mild bearish 0

-2 or -3 Strong Bearish momentum -1

Step 3 — WOB: Weekly Open Bias


WOB = Current Price - Weekly Open Price

WOB Result Bias Score

Positive (above WO) Bullish +1

Within 50 pips of WO Neutral 0

Negative (below WO) Bearish -1

500+ pips away from WO Mean reversion risk — reduce confidence 0

Step 4 — DBCS: Daily Bias Confluence Score


DBCS = CPR Score + TDMS Score + WOB Score

DBCS Final Bias Action

+3 Strong Bullish BUY setups only — full size

+2 Bullish BUY setups — normal size

+1 Mild Bullish BUY setups — reduced size

0 Neutral NO TRADE — sideline

-1 Mild Bearish SELL setups — reduced size

-2 Bearish SELL setups — normal size

-3 Strong Bearish SELL setups only — full size

Worked Example CPR: Close 4388, Low 4099, High 4536 = 66% = 0. TDMS: Mar21 -1, Mar22 -1,
— March 23, 2026 Mar23 -1 = -3 = -1. WOB: 4318 - 4491 = -173 = -1. DBCS = 0 + (-1) + (-1) = -2.
STRONG BEARISH. Gold dropped 6% that day. Algorithm was correct.

SECTION 3: THE 3-FILTER MANIPULATION DETECTION


SYSTEM
After MDB confirms daily bias — watch the Asia session. When the first big leg appears — run these 3 filters
immediately.
Filter 1 — 3-Day Majority Bias
Look at last 3 daily candles. 2 or more DOWN = Bearish. 2 or more UP
= Bullish.

Condition Signal
3-Day Bearish + First leg UP MANIPULATION — real move DOWN

3-Day Bullish + First leg DOWN MANIPULATION — real move UP

3-Day Bearish + First leg DOWN Possibly real move — low confidence

Mixed 3 days No clear signal — skip

Filter 2 — Asia Session Time Window


First big leg must occur between 22:00 - 02:00 GMT for highest
probability

Time GMT IST Manipulation Probability

22:00 - 00:00 03:30 - 05:30 100% in dataset

00:00 - 02:00 05:30 - 07:30 67% in dataset

02:00 - 06:00 07:30 - 11:30 33% — use with caution

After 07:00 After 12:30 London open — different rules

Filter 3 — Pip Size Qualification


First big leg must be 600+ pips for institutional manipulation
confirmation

Pip Size Interpretation


Below 300 pips Too small — normal noise — not manipulation

300-599 pips Borderline — use only if filters 1 and 2 very strong

600-1000 pips Valid manipulation size — proceed

1000+ pips Strong institutional manipulation — high confidence

SECTION 4: COMPLETE DAILY WORKFLOW

NIGHT Before sleep — note previous day High, Low, Close. Calculate CPR. Note if bullish or bearish.

MORNING Calculate TDMS (last 3 days). Check Weekly Open. Calculate DBCS. Know today's bias.

DQF Calculate 5-day average range. Today's range / average. If above 1.5 = anomaly day = close
CHECK charts.

ASIA Monitor 22:00-02:00 GMT. Is a big move forming? Which direction?


WATCH
FILTER 1 Check 3-day majority bias vs first leg direction. Same direction = less likely manipulation.

FILTER 2 Confirm time is within 22:00-02:00 GMT window for highest probability.

FILTER 3 Measure first leg pip size. Must be 600+ pips for institutional confirmation.

CONFIRM 3 filters matched? Manipulation confirmed. Real move = OPPOSITE direction at London open.

WAIT Do NOT enter during Asia manipulation. Wait for London open (07:00 GMT / 12:30 IST).

ENTRY London open — 23.6% retracement of manipulation leg = entry zone. 1M confirmation candle.

SL & TP SL = 10 pips beyond manipulation extreme. TP = manipulation size x 3 minimum (1:6+ RR).

JOURNAL Record everything — DBCS, filters, entry, SL, TP, result. Data builds accuracy over time.

SECTION 5: PREDETERMINED SESSION BIAS


Once daily bias is confirmed and manipulation is detected — session bias is automatically predetermined for
the rest of the day.

Session GMT Role

Asia 22:00-02:00 Manipulation zone — watch only

London Pre-Market 06:00-07:00 Setup phase — prepare entry

London Kill Zone 07:00-09:00 REAL MOVE STARTS —


primary entry window

NY Open 13:00-14:00 Continuation or secondary entry

London Close 16:00-17:00 Partial close or trail stop

Session Rule If manipulation happened in Asia and real move started at London open — DO
NOT look for counter-trend trades during NY session. Bias is set for the day.
Trade only with the predetermined bias direction.

SECTION 6: ENTRY MATHEMATICS AFTER


MANIPULATION

Entry Zone = Manipulation Extreme + (Manipulation Size x 0.236)

Stop Loss = Manipulation Extreme + (Manipulation Size x 0.05)

Take Profit = Entry + (Manipulation Size x 6.18)

Worked Example:
Level Calculation Price

Manipulation High Asia spike high 4,569

Manipulation Low Return point 4,440

Manipulation Size 4569 - 4440 129 pips / 1290 pips

Entry Zone 4569 - (1290 x 0.236) 4,264 pips from high

Stop Loss 4569 + (1290 x 0.05) 64 pips above high

TP at 6.18x 1290 x 6.18 7,972 pips from entry

Risk Reward TP / SL 1:6+ minimum

SECTION 7: QUICK REFERENCE CARD

Formula Calculation
CPR (Close - Low) / (High - Low) x 100

TDMS Sum of last 3 days (+1 bull, -1 bear)

DBCS CPR + TDMS + WOB score

DQF Today's range / 5-day avg range

Manipulation Filter 3-day bias + time 22-02 GMT + 600+ pips

Entry Manip extreme + (size x 0.236)

Stop Loss Manip extreme + (size x 0.05)

Take Profit Entry + (Manip size x 6.18)

Break-even at 1:6 1/(1+6) = 14% win rate needed

The Algorithm in Asia session manipulation + 3-day opposite bias + 600+ pips + 22:00-02:00
One Sentence GMT = Real move opposite direction at London open. Enter at 23.6%
retracement. Target 6x manipulation size.

Critical Warning This system is based on 16 days of data. DO NOT trade real money until you
have completed a minimum 6-month backtest. Paper trade first. Collect data.
Verify accuracy. Then and only then — teach students.

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