DEFINITIVE PRACTICAL GUIDE FOR THE BRAZILIAN MARKET:

INTERMEDIATE MODULE | 2021

BASED ON THE INTERNATIONAL METHOD OF OLIVER VELEZ

V. 4. 2021
IMPORTANT NOTE

The following slides are strictly educational;

Any attempt to replicate the techniques presented here must be discussed

first with your investment advisor;

Operations in variable income are a risky activity. Past profitability is not a guarantee.
of future profitability;

Some of the techniques presented here are my adaptations for the Brazilian market.
not fully corresponding to the international techniques that exist;

2
FOLLOW ME ON SOCIAL MEDIA

Instagram: Youtube:
@sennatrader youtube:https://
[Link].c
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3
PRESENTATION & READING AND LEARNING TIPS

Never say never, for limits are like

dreams: are always just an illusion” Michael Jordan

HELLO, TRADER! Welcome to our workbook. I say "ours" because from now on it
it's yours too. It will be your inseparable companion in the climb for consistency in the market
financial!

I will take advantage of this brief introduction to talk a little about myself and how you should use it.
this material. If you don’t know me, I am Senna Trader - a professional and self-employed trader with
15 years in the financial market, and for the past 9 years I have dedicated myself exclusively to
teachings of two great trading masters – Oliver Velez and Larry Williams. Everything that
I learned from these mentors, internalized, digested, and adapted it to our national market, which
As we know, it has its peculiarities of oscillations and volatility.

4
PRESENTATION & READING AND LEARNING TIPS

Well, all this market experience of mine is translated into these more than 800 pages (constantly
updated) that you have in hand at this moment. Enjoy! Because they can help you shorten the
path to your success.I will start by saying that this is not basic material. On the contrary, it is
intended for traders, especially DayTraders, who are already familiar with the fundamental concepts of
market, such as: moving averages, trend, support, resistance, etc.

I also affirm that this is not a novel or a literary book that should be read in chronological order to
to understand the history. No! This is, above all, a reference material. After all, as I said
logo at the beginning, will be your partner in this great journey for consistency. You can even, if you
if anxiety is too high, walk straight into the setups, then go back to the general rules of
trading plan, then go to the end to find out what market forces are and so on...the choice is yours,
The material is dynamic, break it down, memorize it, absorb it, make its content flow through your veins.
Aliás, uma dica que lhes dou é, sempre que estiver estudando ou até mesmo operando, deixe a apostila aberta
On the other screen, it becomes easy for you to recap the scenarios and setups that unfold on your screen.

5
PRESENTATION & READING AND LEARNING TIPS

I am already saying goodbye, but before I leave I would like to make some alerts. Becoming a trader
being a professional is quite a challenge, it's a constant journey, but I confirm with my own life: it is a
possible walk! This material is one of the tools you have to overcome barriers. I have
you can be sure that what you have in hand is one of the most complete manuals in this country, but remember: studying
Individual, alone, and self-taught requires much more discipline and commitment. Be careful!Now, if
After some time, if you wish to join us in the Mentorships or in the Master Class (live room), know that
I will be very happy with your arrival!

Count on my experience and my help on this journey!

Follow us on our social media, especially Instagram (@sennatrader) and YouTube (/sennatrader)
The amount of free information and studies that I publish in these places is enormous! Take advantage.

Strong hug!
Let's Go Together!
Senna Trader
6
INDEX
Page 48. STOP SIZES
[Link] FEATURES OF THE MINI INDEX
9. TRADE PLANS 52. THE DAILY CHARTS AND THEIR
IMPLICATIONS IN INTRADAY 74. GETTING TO KNOW THE MINI IN DEPTH
11. THE NEED FOR A PLAN INDEX | Reversal Time
53. THE IMPORTANCE OF OBSERVATION
14. 1st BASIC PLAN POSSIBLE FROM THE DIARY FOR OPERATIONS 81..ADDENDUM - REVERSAL TIME
INTRADAY - Part 1
15. 2nd BASIC PLAN POSSIBLE 90. GETTING TO KNOW THE MINI IN DEPTH
[Link] IMPORTANCE OF OBSERVATION INDEX - Less favorable days
16. 3rd BASIC PLAN POSSIBLE FROM DIARY FOR OPERATIONS
INTRADAY - Part 2 100. PARTICULARITIES OF MINI DOLLAR
17. ADDENDUM: GREATER PLANS
61. THE IMPORTANCE OF OBSERVATION 101. GETTING TO KNOW THE MINI IN DEPTH
18. MIGRATION OF PLANS FROM THE DIARY FOR OPERATIONS DOLLAR-BE is exhausted
INTRADAY - Part 3
22. BASE OF THE ADAPTED OV METHOD [Link] UPS OF THE OV METHOD
FOR THE BRAZILIAN MARKET 64. THE IMPORTANCE OF OBSERVATION ADAPTED FOR THE MARKET
FROM THE DIARY FOR OPERATIONS Brazilian
28. LOCATION OF THE IDENTIFICATION METHODINTRADAY - Part 4 | The distortions
117-BULL 180 / BEAR 180 - CONCEPT AND
31. LOCATION OF THE METHOD - THE FORCES [Link] 5: FALHAS DE SET UPS IDENTIFICATION
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INDEX
Page.
374. THE DUMB MONEY AND THE SWING TRADE
331. A CONSISTENT AND POWERFUL
142. BE-ELEPHANT BAR LOC4
376. PRIMARY CHARACTERISTICS OF
DUMB MONEY
190. RBTO & GBTO 339. THE LOCATIONS OF THE METHOD
OLIVER VELEZ - Adaptations | Loc2
377. SECONDARY CHARACTERISTICS
218. SMALL TOPO
DO DUMB MONEY
353. SWING TRADE LONG POSITION
GIFT DEADLINE 383. DUMB MONEY AND SWING TRADE
IN THE ACTIONS
249. NRB 358. SWING TRADE IN STOCKS: A
PLAN CHOICE 390. KNOWING THE FORCES
262. GBI & RBI
OF THE MARKET - Initial Analysis
361. SWING TRADE INDEX AND DOLLAR and the
287. CDB & CAS 50% retracement Common market errors
306. VBS & VSS 364. SWING TRADE: THE UTILIZATION OF 396-SPECIFIC CHANGES OF
TAILS OF THE PREVIOUS DAY BRAZILIAN MARKET OVER THE COURSE OF
330. THE LOCATIONS OF THE METHOD
YEARS
OLIVER VELEZ - Adaptations 368. SWING TRADE: NEGATIVE POINTS
406. NOTE: LITTLE VISIBLE LEGENDS
370. NRBS SET
409. THANKS 8
TRADE PLANS

9
THE NEED FOR A PLAN

Every trader needs to have a plan. Easy to say but difficult to execute.
because self-sabotage in trading practice is one of the biggest causes of losses.

●Também, pelo senso comum e o que é veiculado nos livros técnicos e pelos analistas,
It is necessary to always aim for 2 to 3 times your stop for your gain.
This doesn't work in practice.

● It is indeed important for each operation for the operator to aim for at least 1 to 1 of their stop.
your exit. 95% of the setups described in this booklet have this objective, however this is still
different from trading books.

In daily life, you will often see situations where your stop (if it happens)
it will be more expensive than the gain if the operation is correct.
– "Senna, but does this make money?"
If you think of a method where you win more times than you lose, there will be no
problems.
10
THE NEED FOR A PLAN

The trading plan for those who want to specialize in day trading means everything. It is the foundation,
the foundation, the pillars for your operation;

It is easier for a trader to perform better by following a good trading plan using a method.
questionable than a trader with an excellent method but without any plan or without
follow your rules;

The professional trade plan should also contain observations that can help a lot in
operational walk such as:

● Media in points of the most profitable operations: if I know my trades better

I will have a basis of what the market can give me in the best moments.
for the method, that way I won't be greedy wanting more and I can withdraw my profit from
market avoiding what is commonly referred to as "leaving on the table."

11
THE NEED FOR A PLAN

●-maximum number of operations per day: important to avoid overtrading, that is,
excessive operations on that day generating stress and loss of emotional control. The day
Good trades are usually concluded with few profitable trades. There are indeed exceptions.
when the market is very favorable for the method being advantageous for more operations
to achieve higher profits but in most cases many operations per day
Apart from the scalping plans, serious failures should be considered.

12
BUILDING A PLAN

In the OV method, we have 5 positions:

Baby
Small
Media
Big
Maxi

Some smaller plans will not have this division.

Mainly in relation to the dollar, where each mini-contract is worth more.

All plans will have daily and monthly goals.

13
1st BASIC PLAN POSSIBLE

●R$150 - meta diária | R$1.500 - meta mensal

●R$250 - loss diário | R$2.500 - loss mensal

For the whole index, the division is:

●Baby: 1 mini
Small: 2 minis
Medium: 3 minis
Large: 4 minis

For every dollar, in this plan, the trader will only have two divisions:
Small: 1 mini
Medium: 2 minis

14
2ND BASIC POSSIBLE PLAN

●R$250 - meta diária | R$2.500 - meta mensal

●R$450 - loss diário máximo | R$4.500 - loss mensal

For all men index, the division is:

Baby: 1 mini
Small: 2 minis
Medium: 4 minis
Large: 6 minis
Maxi: 8 minis

For every dollar, the division is:

Small: 1 mini
Medium: 2 minis
Large: 3 minis

15
3rd BASIC POSSIBLE PLAN

●R$450 - meta diária | R$4.500 - meta mensal

●R$750 - loss diário máximo | R$7.500 - loss mensal

For the entire index, the division is:

●Baby: 2 mini
Small: 4 minis
Medium: 8 minis
Large: 12 minis
●Maxi: 16 minis

For every dollar, the division is:

Baby: 1 mini
Small: 2 mini
Medium: 3 minis
Large: 4 minis
●Maxi: 5 minis
16
ADDENDUM: BIGGER PLANS

A trader should only use a larger plan when they have already achieved consistency.
For in the pursuit of a greater gain, he will also have to accept a greater loss (at least 1 to 3).
That is, if he misses 1 day, it will take the gain of 3 days of maximum profit.

Exemplo: objetivo de R$1.500 a R$2.000 | stop máximo: entre R$5.000 a R$6.000

Baby: 5 minis
Small: 10 minis
Medium: 20 minis
Large: 40 minis
Maxi: 50 minis

17
PLAN MIGRATION

-An operator who has already achieved consistency for at least 3 months in a given plan
You can think about changing batches, but it is not yet time to think about changing plans.

We take as an example the second basic plan already described. In it, we have the divisions of the lots.
employees. Initially, to start this plan, the operator should generally open about 80%
from your operations with lots up to medium both in the index and in the dollar. This should be your
first step in the attempt for 3 months of consistency.

Once success is achieved, the operator can attempt to spend about 50% of their time with
large lots or maxi. This new phase should also last for 3 months.

We conclude that a plan migration should only be done at least after 6 months of
every possible plan present in this study guide. We then see the following scheme:

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BASIS OF THE ADAPTED METHOD

22
BASIS OF THE ADAPTED OV METHOD
FOR THE BRAZILIAN MARKET

We should always keep some basic concepts in mind that will serve for everything.
the entries without exception. They are:

●Setup + Location

Stop size

Distance from the entrance to a stronger resistance or support

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LOCATIONS OF THE METHOD - LOCS: IDENTIFICATION

A very important baseline of the method, the so-called Locs must be known.
deeply for the identification of more suitable regions for larger lots or not.

The locs are related to the averages used in the method: mm8 simple, mm20 simple, and mm200.

Below we have the five locs with the ideas that should be applied to each one:

prices near the mm8 and mm20

prices near and below the upward sloping mm20
prices near the mm8 and away from the mm20
prices far away and below the upward sloping 20-day moving average
prices far from mm8 and mm20

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METHOD LOCATIONS - THE LOCS: FORCES

From the identification of the Locs we can now establish a force scheme that will
definitely influence the lottery game:

-LOC1 stronger than LOC3

-LOC3 weaker than LOC1
-LOC2 weaker than LOC4
-LOC4 stronger than LOC2
counter-trend zone

In this way, we conclude that:

A setup occurring at Loc1 will theoretically have a greater power than at Loc3.
therefore the batches used in loc1 must be naturally larger than in loc3;

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LOCATIONS OF THE METHOD - LOCS: FORCES

Only the setups in loc5 that are opposing should be observed and operated.
trend;

-a setup occurring in loc4 will theoretically have a greater power than those in loc2.
so larger batches should be used.

So we have the following scheme thinking about the buying side and then about the selling side

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LOCATIONS OF THE METHOD-THE LOCS:FORCES

We should basically study the LOCS in the following way:

prices near the m20

prices near the m8 and far from the m20
prices below and near the upward sloping m20, LOC2 buyer and prices above and near
from mm20 inclined downwards, LOC2 saleswoman.
prices below and further from the upward sloping m20, buyer LOC4 and prices above and
but further from the downward sloping mm20, LOC4 seller.
prices with two or three levels of space: prices far from the mm8 that is far from the m20, two
levels or prices far from the mm8 which is far from the m20 which is far from the m200.

Note: regions with 3 levels of space in larger timeframes can generate trades very
interesting for swing.

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LOCATIONS OF THE METHOD-THE LOCS:FORCES

After the operator learns all the setups described in the manual, they should return to this topic to
So calculate in a conscious way the use of the most suitable lots for your capital.
observing the concept of Locs and their strengths already described:

An important observation refers to the fact that nothing prevents a naturally more loc1.
strong, be more efficient every time an operator wants to be
consistent should use the locations for a better batch game but want to enter
only in very well-located regions will often leave the trader out of the game because
there are days when the setups will occur only in weaker locations, even so they
can be very profitable.

The next slides contain diagrams of the mentioned forces:

40
METHOD LOCATIONS - THE LOCS: FORCES

The knowledge of these Locs helps the operator not only to identify the best zones.
to operate with larger lots but also greatly influences the decision-making for the
moment that should be spent more in waiting mode.

Few know, but we professionals spend 80% of the time in the futures market in mode of
Wait. Already operating the stock market, this time is reduced to 50%.

So the ideal for the Brazilian futures market, which has a duration of 10 hours, is that we are in
maximum 2 hours in the game including the moments we let the trade flow but already with
partial completion made.

The following graph contains information about what must be going through the mind of an operator.
method:

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LOCATIONS OF THE METHOD-AS LOCS: FORCES

The operator must be aware that the idea of the Locs is theoretical and statistically studied.
However, nothing prevents a loc3 from being stronger than a loc1, and there are no guarantees that a
location1 should not be stopped. This leads us to the knowledge that a trader must also be consistent.
It must involve operations in less favorable locations, respecting the number of lots in the original plan.
for each
a.

It is also important to understand that even being in a counter-trend region does not mean
to say that prices no longer have the strength to continue the trend. What is important to think is that
Even in favor of the averages, the moment is already riskier for trend trades.

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SIZE OF THE STOP

A professional operator should always consider the size of the operation before entering into one.
risk that will be submitted. Failure to observe this extremely important detail may generate
serious consequences.

For a more mechanical idea, I will put in the next slide the maximum acceptable stop points of
each setup of this manual. Obviously, this should not be seen as an absolute rule, until
even though it is dealing with a not exact science, it will help a lot in the definition of
entry or in standby mode. We call stops that are too large prohibitive.

Many times when we don't enter a larger stop operation a few minutes later we are
given the opportunity for setups with smaller stops and who knows, even better ones.
located.

The number of points below refers to the 5-minute timeframe in which I operate 95% of my trades.
For other timeframes, the student should call me to receive the numbers..

48
SIZE OF THE STOP

INDEX:

-BULL 180 E BEAR 180: maximum 400 pts

-RBTO and GBTO: maximum 400 points
-BE, JOINING OF BES AND GAP: maximum 400 pts
-VBS and VSS: maximum 300 points
-GBI E RBI: maximum of 300 pts
NRB: maximum of 200 pts
-LOC2 AND LOC4: maximum of 300 pts
maximum of 250 pts
-CDB E CAS: maximum of 350 pts
-GIFT:máximo de 400 pts

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STOP SIZE

DOLAR:

BULL 180 E BEAR 180: maximum 16 pts

-RBTO and GBTO: maximum 16 pts
-BE, COMBINATION OF BES AND GAP: maximum 18 pts
-VBS and VSS: maximum 12 points
-GBI E RBI: maximum of 12 pts
-NRB: maximum of 8 points
-LOC2 and LOC4: maximum of 10 points
maximum of 8 points
CDB and CAS: maximum of 14 points
-GIFT:máximo de 16 pts

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51
THE DAILY CHART AND ITS IMPLICATIONS
NO INTRADAY

52
THE IMPORTANCE OF KEEPING A DIARY
FOR INTRADAY OPERATIONS - Part 1

We know that "TheBoss" in the market is the funds. These, in turn, operate intraday.
thinking about a better positioning of your assets for days or weeks, whether in buying
or at the sale.

A Master Trader must understand the behavior of the trend on the daily with its applications in
intraday.

The daily average is high, complicating intraday operations on the selling side, even with the best.
setup OV.

The daily low makes intraday operations difficult on the buying side, even with the best.
setup OV.

53
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55
THE IMPORTANCE OF DIARY OBSERVATION
FOR INTRADAY OPERATIONS - Part 2

When the diary is then in a well-defined trend, we must be brave.

in trades where there is a marriage between the two trends, that is, intraday bullish
with bullish diary + a buying setup.

This is of utmost importance, as it is necessary for the trader to create a cash reserve during these periods.
to manage to survive in adverse times.

Even following all the setups meticulously, there will be adverse times that will test the
the emotional balance of each trader and their confidence in themselves and in the method.

It is very common for traders to jump from method to method without getting anywhere.

56
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THE IMPORTANCE OF DIARY OBSERVATION
FOR INTRADAY OPERATIONS - Part 3

Traders who have accepted a smaller loss should try to operate at least 80% of the time.
please two trends, that is, related daily and intra day. Obviously, this will take many
times of great waiting and affliction. It is in these moments that emotional control will be
indispensable.

Traders who accept a higher risk can indeed operate against one of the trends, without
problems. Obviously, following the setups.

More experienced traders, who accept great risk, may trade sometimes against the
two trends to make the most of the day. But this is only advised in 20% of
time and it is not for everyone.

The large sum of money will come in movements of two trends.

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THE IMPORTANCE OF DIARY OBSERVATION
FOR INTRADAY OPERATIONS–Part 4 | The distortions

There are few moments of great euphoria or enormous pessimism in the market.
Some of these create a certain distortion in the market, diminishing the validity of many setups.
methods like those of Oliver Velez and others.

All these times, the candles, even if they are of shorter durations, affect in a way
substantial trades.

From my experience, I don't like these moments, because a professional likes and
needs volatility. However, extreme volatility excessively increases risk and generates
a lot of stress.

Traders who operate with limited capital should wait for this time to pass. As for those
those that operate a little larger should minimize the number of lots used.

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THE IMPORTANCE OF DIARY OBSERVATION FOR
INTRADAY OPERATIONS - Part 4 | The distortions: operational

With the proper caution taught in the previous slides, we can indeed operate a distortion in the daily.
following some criteria:

-the batches must necessarily be smaller than normal due to the high volatility and
obviously the possibility of a stop greater than normal.

-O operational must be against distortion: if we have a bullish distortion, we should think about
sales, a bearish distortion we should think about buying.

-to the altist distortion nextwe expect the 1st larger red candle for
we position a sell order upon the loss of that candle. This candle could also be from
reversal as a TT.

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69
THE IMPORTANCE OF DIARY OBSERVATION
FOR INTRADAY OPERATIONS - Part 5 | The failures of setups
specific

As we have seen, the location of the diary can substantially influence the accuracy percentage.
from many intraday setups;

Let's study one of these substantial influences of a setup that will be described.
subsequently, it is then up to the student to return to this page after having studied and understood the
set up bar junction;

When there are localized auctions between the 8-day moving average and the 20-day moving average on the daily chart, the accuracy percentage of the set.

The bar junction drops quite a bit and should be avoided.

70
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PARTICULARITIES OF THE MINI INDEX

73
DEEP KNOWLEDGE OF THE MINI INDEX
Particularidade - Reversal Time

When the mini index is in a strong upward or downward trend and reaches a
resistance or a very important support between 11:30 am and 1:30 pm (without daylight saving time),
there is a great possibility of marking a strong peak or strong bottom. Then, a ...
counter-trend movement (initially slow with subsequent acceleration).

If this event occurs after this time, there is no counter-trend movement of

greater relevance will probably occur but lighter.

74
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ADENDO - REVERSAL TIME

There is a doubt, very common among operators, regarding days.

values above the pre-established gain target should be sought.

The auction in which a reversal time occurs is conducive to this thought.

because we have the probability of two sessions on the same day.

This is possible given the numerous OV setups that, on days like this,
They appear at various times of the day.

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REVERSAL TIME-OPERATIONAL

Entry: Buy reversal to go up or sell reversal to go down upon surpassing or losing a

reversal candle in the previously marked area of the daily.

Stop: below or above the candle that generated the reversal.

The following example shows an entry made by the reversal that stopped but soon after came in.
reversal candle allowing another entry by concept.

Rp: longer resistance structure, buy reversal, or longer support structure, reversal
for sale.

Final: overcoming the maximum of the day, buying reversal or loss of the minimum of the day, selling reversal.

86
87
REVERSAL TIME-STOP PROBABILITY

Like all the situations presented here, the reversal time does indeed have the possibility of stopping even.
all ideal criteria for the operation have been presented.

We must still strictly observe all the criteria since there are many details for the
reversal time. Next we have an example of an effective stop, the one that is effective even when all are observed
criteria led the operator to the operation's stop loss.

88
89
DEEPLY KNOWING THE MINI INDEX
Specificity - Less favorable days for operations

There are less favorable days and therefore less interesting for operations in this asset.
Knowledge of these avoids unnecessary losses that can greatly influence the overall picture.
from the personal account of the operators. Days studied and tested by me when the % of hits of
setups have a significant drop. This does not mean that other assets like the dollar and stocks
they will have the same problem and therefore an intelligent trader should pay more attention to these.
we have the list of these days:

-PAYROLL-every first Friday of each month.

HOLIDAY IN THE USA
EXPIRATION OF OPTIONS - third Monday of each month.
LAST DAY OF EACH MONTH.
CONTRACT CHANGE DATE.
PRICES BETWEEN THE 3 MOVING AVERAGES OF 200 PERIODS.

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92
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94
KNOWING THE MINI INDEX IN DEPTH
Particularity–Less favorable days for operations.
Change of contract

In the following example, we have a contract change day in the mini index. Note that the day
it tends to be very indecisive with a smaller range at the beginning with an undefined trend and several
initial stops.

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DEEP KNOWLEDGE OF THE MINI INDEX
Particularity - Less favorable days for operations.
Options expiration

This particular day has a feature similar to the contract change day.
There is usually a lateralization with the presence or absence of setups that we use and then
In the afternoon we have a more directional movement.

In the following example, we have an example of an options expiration day.

98
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SPECIFICS OF THE MINI DOLLAR

100
KNOWING THE MINI DOLLAR IN DEPTH
Exhaust Bar

In particular, the mini dollar makes significant contrary movements after a large
exhaust bar.

One should trust a exhaustion BE after a LONG TREND MOVEMENT

has already happened before.

After identifying the exhaustion bear, look for a bullish exhaustion candle.
candle bassist - BE of high exhaustion or a reversal candle for buying or selling or
wait for 15 minutes to buy or sell during the retracement of the tail candle that may happen
almost immediately or a good time later.

101
DEEP UNDERSTANDING OF THE MINI DOLLAR
Exhaust Bar

This exhaust bar usually occurs in the afternoon after extensive movement.
directional of prices throughout the day, however there are special situations in which this movement
It happens at the beginning of the next day after yet another brief trend movement of the asset.

The first example below refers to this special situation in the 15-minute timeframe when we can
Identify an exhaustion B at the beginning of the day. The remaining examples are normal market situations.

102
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KNOWING THE MINI DOLLAR IN DEPTH
Exhaust Bar: Operational

If it is a bullish exhaustion bar like in the example on the next slide, one should identify the candle.
immediately sell the exhaustion B at a loss of this with a protection stop of 2 points
above the elephant exhaust bar.

110
111
GETTING TO KNOW THE MINI DOLLAR IN DEPTH
Exhaust Bar and the 50% retracement

An exhaust duct when identified following the previous criteria has a

high power and must be taken as a strong price barrier. For
consequence even if it is below the averages we can use reasoning
in this specific particularity as a B above the average using the 50%
retraction as buy zone.

112
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SET UPS OF THE ADAPTED METHOD
FOR THE BRAZILIAN MARKET

114
MAIN SETUPS OF THE OLIVER VELEZ METHOD
General Aspects - Part 1

For better study and understanding of the setups, it is of utmost importance to observe
of the following points below:

●Concept andsetup identification

● Operational: entry, total RP and stop
Setup quality: essential for thelot game
Know the pointspositives and negatives of the setup
●Know thefilters

115
MAIN SETUPS OF THE OLIVER VELEZ METHOD
General Aspects - Part 2

In addition to observing strong resistances and supports on the daily chart, the trader must understand
that in the OV method we use, in a very categorical way, the average of 200 as
support or resistance of prices in higher timeframes than we are operating in.

The timeframe I operate the most is the 5 minutes. So, besides observing the location of the m200
In 15 minutes, I will place M200 markers at 15 minutes because this position can...
influence my decision-making for entry, take profit, final exit or stop of a
trade.

The m200 at number 2 doesn't matter for my trade system.

The marking of m200 on the 60 min. does not appear frequently but we should leave it.
also marked.

116
MAIN SETUPS OF THE OLIVER VELEZ METHOD
Bull 180 / Bear 180 - Concept and Identification

It is Oliver Velez's preferred setup.

The central idea behind this setup is a race, on the part of large institutions,
in the sense of strongly and definitively canceling the previous movement.

Due to this rally, we have a larger candle engulfing either partially or totally.
the previous candle.

When we talk about partially engulfing, it means practically engulfing.

the entire previous candle.

117
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MAIN SETUPS OF THE OLIVER VELEZ METHOD
Bull 180 / Bear 180 - Operational
It is a setup to trade preferably in favor of the averages. There are moments
interesting to operate against the averages but most of the time
we operate in their favor.

Less aggressive entry:wait for the candle of the pair to finish before entering
in his overcoming.

●More aggressive entry:enter right at the breakout of the engulfing candle

●Stop: overcoming the maximum or losing the minimum of the pair

●RP: 1 to 1 - after which, the stop is moved to the

breakeven.

● Final 2 para 1

● There is no need for the trigger to be immediate; we can have a candle in between before the
activation but until the 2nd immediate candle after identification the setup should happen or 121
will be reconfigured.
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Bull 180 / Bear 180 - Quality

The Bulls and Bears in favor of the averages have much more quality.

It is necessary to observe the size of the stop.

Bulls and Bears, in which the averages m8 and m20 are closer together,
they also have more quality.

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Bull 180 / Bear 180 - Positive points, negative points, and filters

The negative point refers to the high stop.

The positive point is that often one enters at the beginning of a trend,
which could then take many points in its favor.

The filter is closely related to the presence or absence of larger wicks in the pair.
The shorter the wicks, the higher the quality of the pair, especially because the stop will be smaller.

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Bull 180 / Bear 180 – Practical Visualization

The first most important situation for an operator is to define their trading plan in relation to each
In this case, we have the important choice of whether we will operate more aggressively or less.
agressivamente,pois isso mudara o curso desse trade em questão.

The inconsistency, which no one desires, may arise from a dubious choice on the part of the operator now.
making the bull or bear more aggressive at one time and operating the least aggressive at another.

In the following examples we have:

pages 129 to 131: less aggressive operated bull
-pages 132 to 134: more aggressive operating bull
pages 135 to 137: more aggressive operated bear
pages 138 and 139: less aggressive bear operated

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Bull 180 / Bear 180 - Stop probability

Like all the setups presented here, both the bull and bear 180 do have the possibility of
stop even presenting all the ideal criteria for the operation.

We must still strictly observe all the criteria since there are many details for the .A
next we have an example of an effective stop, one that even when all the criteria are observed led to the
operator to the stop loss of the operation.

And in the following example, the worst of worlds happened, which was the stop by just a few points and
then the trade evolved as expected.

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Elephant Bar - Concept and Identification
The 'BE' is a race by the major players for an asset.

Due to this run, we have a strong bullish or strong bearish candle that is well highlighted.
in the chart.

This candle engulfs several previous candles.

Several buy signals will appear in various assets every day, so the trader must be
aware of the filters that will be addressed at the end of this chapter so that it does not operate
All of them, because otherwise this setup will always leave you exposed to the market and it will happen.
overtrading (trading excessively).

Just like in the previous setup, there is indeed the possibility for the operator to choose whether to operate
aggressively or less aggressively in this setup.

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Elephant Bar - Operational

When we have identified a BE, we have two possible operations:

● Waiting for the 50% to 65% retracement (more aggressive)

● Wait for a candle with a lower high that is further away from the high of the
BE (less aggressive).

The stop, for any of these entries, will be the minimum of the BE of high or the maximum of the
Be low.

The RP is given by half the value of the BE.

The final is given as 2 to 1.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
Elephant Bar - Addendum 1: the 50% to 65% retracement

We can use this concept for any longer sequence of green or red bars.

We can use this concept both intraday and daily, to mark areas.
important support or resistance levels that can serve as buy or sell zones.

Any trend-following sequence that emerges, we can mark 50% to 65%.

like a buy zone or a sell zone.

The marking is done based on the bar that has the largest portion above the m20.

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Elephant Bar - Addendum 1: the 50% to 65% retracement - Details

When considering the 50 to 65% retraction in a set of bars, we must pay attention to
some details:

the set to be considered is that which is above the mm20;

The retracement will only be valid if the buy orders: Be bullish are above the mm20 or Be
bass player below the mm20.

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Elephant Bar - Addendum 1: the 50% to 65% retracement - Visualization
practice

There are many examples related to [Link]. The care that the operator must take refers to the two
details already described previously in addition to the FILTERS that are described in the final part of this setup study
that can greatly affect the operation as a whole, and may even occur if not properly observed.
lead to an operational error.

The operator must also choose whether to operate aggressively or not. Remembering that consistency will come from
a constant operational type, so one should not change the aggressive style to the non-aggressive one now and then.

In the first example, we have a set of Bs at the buying end, and in the second, we have a set of Bs.
at the selling point when the order of 65% was not executed.

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Elephant Bar - Addendum 1: the 50% to 65% retracement - Visualization
practice - advantages and disadvantages of aggressive and non-aggressive

Advantages of the non-aggressive:

- The candle in favor of BE generates another confirmation of the direction of the movement

Disadvantages of the non-aggressive:

Usually the stop is bigger;
I will operate this setup a little.

Advantages of the aggressive:

-o stop is almost always lower, the operation is better positioned.

Disadvantages of being aggressive:

the inherent risk is greater

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BE - Addendum 2: the 50% to 65% retracement in Gaps

When there is an opening gap, whether bullish or bearish, by the OV method, instead
By betting on the counter-trend movement, to close the gap, we are betting on sales.
You buy in favor of that gap if it is taken between 50% and 65%.

It is of utmost importance to verify the m20 and the distance from the m200 in order to have a trade.
of quality.

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BE - Addendum 3: combining operational concepts

Many times, for the success of an operation, a combination is necessary.

of several concepts.

This knowledge is indispensable for the training of consistent traders.

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Elephant Bar - Addendum 4: Filters

We must use all the concepts of BE, knowing that there is a filter.
that often makes the concept unfeasible.

For the mini index, buying or selling under the BE concept must respect the distance.
of a maximum of 800 points from m200, in 5 minutes.

For the mini dollar, buying or selling by the concept of the BE must respect the distance.
a maximum of 20 points from the m200, in 5 minutes.

NOTE: the filters are valid only when we are observing unique BES, sets of
bars or gaps against the 200 moving average. If the analysis is in favor, there is no filter that may
operation to be carried out normally.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
BE–probability of stop

As with all existing setups, there is indeed a real possibility of a stop occurring.
dealing with a simple BE or a junction of bars or even using the
concept of the gap

The important thing is to keep in mind whether the correct identification and conceptualization were made.
the setup and the stop were placed correctly.

●When we are operating, we often force certain operations without the

observation of all requirements for the trade.

The stop should only be considered if all the steps have been taken.
correctly.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO & GBTO - Concept and Identification
RBTO: Red Bar Take Out e GBTO: Green Bar Take Out

Very important setup of the method.

It appears quite frequently at certain times.

There comes a larger drop bar, which has no continuity, and some green bars (by the
less two) they take her completely = RBTO

Here comes a larger bullish bar, which does not have continuity, and some red bars (for the
minus two) they take her completely = GBTO

Note: we need smaller green bars in sequence taking the larger red one RBTO
or smaller red bars taking the larger green GBTO.

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RBTO & GBTO - Operational

It is a setup to always operate in favor of the averages.

Input:
Purchase: 5 pts above the highest candle (RBTO) and 0.5 pt for the dollar.
Sell: 5 pts. below the higher candle (GBTO) and 0.5 pt for the dollar.

Stop: immediately above the larger candle or below the smaller candle.

RP: 1 time the stop

Final: 2 times the stop

After the RP, the stop is changed to the breakeven.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO & GBTO - Quality

AsRBTO's asGBTO's where the previous candle is fuller have more quality.

The size of the stop also matters a lot as, naturally, this setup already has a larger stop.

So we have that the setup with the highest possible quality is the one in which the candle,
What is being engulfed resembles that of the par-bull and bear and has a smaller stop.

In addition, obviously, to terms like better quality in these setups in Loc1.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO & GBTO - Positive points, negative points and filters.

Stop is usually loud.

High level of assertiveness.

When it fails, the trader must be aware to change direction.

(which requires a very high level of concentration and maturity)

The hand reversal is done if the candle that triggered the setup,
or the one following it, is for reversal.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO & GBTO – Hand turn

Some aspects must be observed for an efficient handover:

-not having a nearby m200 that can hinder the fluidity of the trade. If there is one, the operator should
only shorten the stop to the reversal candle

- the original trade may no longer have taken place: the reversal candle must happen near the entry of the
Rbto or gbto original.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO / GBTO - Practical Visualization

In this module, the most complex setup to operate is the Rbto and the Gbto due to the need for
constant observation which is not always required in others since there is no hand turnover.

We suggest that the operator train a lot before operating it. There are many situations to be observed and
Your domain is important for consistency as it is a common setup in everyday use.

Let's go to the examples:

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
RBTO & GBTO - possibility of stop

As with all existing setups, there is indeed a real possibility of a stop when it comes to
a Rbto or Gbto.

The important thing is to keep in mind whether the correct identification and conceptualization was made.
set up and the stop was placed correctly.

Remember that there is also the possibility of a stop at the hand turn, so this only
it should be done if the original stop dp setup has not been weighed.

The stop should only be considered if all steps have been done correctly.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
TM | Minor Topography - Concept and Identification

The conception is that if an asset fails to make a new high, it necessarily

a new fund should be created.

Another valid idea that reinforces is that if an asset makes a lower high compared to the previous high.
previously he must necessarily make a smaller fund.

One of the OV setups that, even though it goes against the averages, I enter heavily because
orisco x benefit is quite interesting.

The position of the averages can benefit or even invalidate the setup.
Therefore, they must be analyzed carefully.

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TM | Minor Topography - Concept and Identification

The presence of a clear upward wave before is necessary,

whether of great or small extent, it must be a clear wave.

A clear wave is considered one in which prices remain most of the time.
above the average of 8.

At the end of this wave, there is a peak that will dictate the market.

After this peak, there should be a clear pullback of at least 2 candles and, subsequently,
the attempt to reach the previous peak with a subsequent candle of doubt or reversal before the peak
greater.

We observe that it is possible to draw a small LTB between the highest peak and the current peak.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
TM | Minor Top - Operational

The TM that triggers above the m20 will have a total target on it.

The TM that triggers below the m20 will have a longer target, which will be given from
of a longer resistance.

Sell 0.5 points of the TM candle in dollars, and 5 points in the mini index.

Stop immediately above the TM candle.

When the TM triggers below the m20, an RP the size of the stop should be made, and then,
look for a longer target given by a clearer longer support.

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TM - Quality, positive points, negative points, and filters.

TM activated below m20 have more quality, however, overall, it is a setup

of excellent risk return.

On the negative side, we have the target at m20, if it is triggered above this, and during the
the operation ends up varying and going against prices, which can make the trade little
lucrative.

On the positive side, we have an excellent risk-return because we will necessarily have
at first, a short stop and a longer target.

If there is no distance from the activation to the m20, the operation should be avoided.

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TM–POSSIBILITY OF STOP

Like all the setups presented here, the TM does have the possibility of a stop even when presented.
all the ideal criteria for operation.

We must still strictly observe all the criteria since there are many details for the
formation of the ideal operational Tm.

Disregarding any criterion may lead to an ineffective stop.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
Gift - Concept and Identification

Gift: Present

After a BE (Elephant Bar) comes the possibility of a better entry than entering.
after its rupture, configuring a zone of presence;

It can be a seller or buyer setup - Purchase or Sale Gift;

The entry must always be above the averages, buyer gift, or below the averages, seller gift;

The concept of gift should only be used for a unique Be. We do not use this concept for a
junction of bars.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
Gift - Operational

Purchase Gift: no breaking of the 1st retracement candle with a minimum distance of about 30
% of the BE maximum;

●Sell Signal: upon the break of the 1st rebound candle with a minimum distance of 30% from
minimum of BE;

●Entry: 5 points on the breakthrough of the candle, on the mini index, and 0.5 points on the mini dollar;

●Stop: minimum of the buying elephant bar or at the maximum of the selling elephant bar.

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Gift - Qualidade, pontos positivos, negativos e filtros.

The level of assertiveness is lower in the mini index and higher in the mini dollar;

Stop is usually high;

A quality gift is only possible if the input is at least 30% of the maximum of the BE.

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Gift–adding: possible conceptual error

The ideal region of a gift is the only one that should be considered is between 30 to 65% of the Be. The idea is that
If there is a greater pullback than this, the elephant bar is losing a lot of strength and the stop of a possible
The entry in the gift has little chance of going in favor;

We should also avoid a gift too close to the top, purchase gift or the bottom, sale gift of
It would be seen as almost the same as buying the breakout of Be itself with its stop.
naturally too expensive;

In the first example below, we have this example with a supposed gift happening near the background.
It is true that although this operation has low probabilities, it gives the expected gain. However, we know...
this is a conceptual error that should be avoided;

In the second example, we have a gift happening too close to the top of the Be without any setback.
minimum required.
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MAIN SETUPS OF THE OLIVER VELEZ METHOD
GIFT x BE 50 A 65%: part 1

One common question that may arise is when to use a gift and when to wait for 50 to 65% of Be.
for the input;

We must bear in mind that whenever a Be appears, the best entry will always be
using 50 to 65%;

The vast majority of gifts then come from situations where it is not possible to enter the 50 to 65% range.
due to it being below the mm20;

In the following example, we have to use the gift tool because the region of 50 to 65% retracement
is confused. In this case, it is better to use the gift setup.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
GIFT x BE 50 A 65%: part 2

The other use of the gift is when there is a set of bars with its end being a BE greater than
as the previous ones that break the m200;

In this case, the gift of this last bar should be used since the m200 will serve as support preventing that
the operator can operate at 50 to 65% retracement of the junction;

Furthermore, we would not achieve the target for the original retraction operation due to itself.
m200;

In the two examples below we have this occasional situation.

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GIFT x BE 50 A 65%: part 3

The other use of the gift is when you have an asset with a strong trending daily chart, a
set of bars far from the mm200 with the last bar being a BE greater than the previous ones;

Remembering that this is the riskiest gift with the lowest success rate, but it is possible for those who are.
more aggressive in the market and does not want to be too involved in all possibilities;

It's important to know in general that the word gift means present, so we should have the opportunity to
It would be better if we were entering the rupture of the BE. So we estimate a distance of 30%
from the top of Be as the ideal entry for a gift. If this is not possible, the gift should be
aborted.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
NRB - Concept and Identification

NRB: Narrow Range Bar = Barra Estreita

It is a very small candle compared to the previous ones.

This small size has to be very clear to the point of catching your attention.

Most of these candles are dojis.

We can trigger purchases or sales in favor of the trend as well as, on a smaller scale,
trigger purchases or sales against the trend

Throughout the day, several of these candles may appear that are not very significant.
The importance is given when it stands out in the graph.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
NRB - Operational

Entry: in the loss or overcoming of the NRB of low or high respectively.

5 points for mini index, and 0.5 points for mini dollar

●Stop: 2 points above or below the NRB for mini dollar, and 100 points for mini index.

●RP: 1 to 1 of the stop / Final: 2 to 1

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
NRB - Positive points, negative points, and quality.

Spectacular risk-benefit

It doesn't appear very often, and when it does,

it is not easy to identify promptly.

Events with higher quality must necessarily be in favor of the trend.

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NRB and the change of hand

● The Nrb in loc1 is so powerful that if it fails it should be seen as a violent possibility
of reversal.

We can use this concept to take advantage of the strong opposite movement that may come.

The Nrb in loc3 should only be operated without a hand turn.

● It is of utmost importance to observe if the Nrb in loc1 is stopped, the size of the stop of this new one.
trade to avoid excessive exposure to risk.

● In slide 247 we have a possible hand turn in a stopped nrb at loc1. In slides 248
At 249 we have a stopped NRB at loc1 but without the possibility of a hand turnaround due to
size

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
GBI & RBI - Concept and Identification

They are based on the concept of expansion and contraction, inhalation and expiration of a force.

They are very common setups in daily life, especially in the mini index.

The most common appear after 3 bearish candles: GBI; and 3 bullish candles: RBI.

They can also appear after two strong bearish candles: GBI;
and two strong bullish candles: RBI.

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GBI & RBI - Operational

It is a setup to be operated always in favor of the trend.

●Entry–GBI: 5 points below the green candle (mini index) and 0.5 points (mini dollar)

●Entry–RBI: 5 pts above the red candle (mini index) and 0.5 pt (mini dollar)

●Stop: overcoming the maximum of the 1st candle with maximum prior to the candle of the GBI
or the loss of the minimum of the 1st candle of the previous minimum before the RBI candle

●RP: 1 to 1 of the stop

●Final: 2 to 1

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
GBI & RBI - Quality

For the highest possible quality of the setup we must verify:

The size of the stop
The position of the averages
The size of the GBI or RBI candle
● As locs: one of the most powerful setups of the entire method are GBI and RBI in LOC1.

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GBI and RBI - Practical Visualization

There are several examples of Gbi and Rbi, even because they are setups that appear consistently.
among the various available assets;

We will visualize two of these situations next:

in the first example we have an Rbi preceded by 3 bullish candles;

In the second example, we have a gbi preceded by 5 bearish candles.

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GBI and RBI – Practical visualization with technical stop

Since there are numerous and varied situations for both an Rbi and a Gbi, we must have
flexibility in this setup regarding the stops;

We set the stop at the previous candle of what is considered an Rbi or Gbi, however there are
situations like in the following example where the previous candle has almost the same size as the candle
the Gbi and the mm20 is very close and can also act as resistance in case there is noise from the
market against your position, so we talk about TECHNICAL STOP.

The TECHNICAL STOP can be defined as a location for the termination of an operation due to a
change in asset trend

We should not use this situation every time, only when there are similar situations.
As described above. For the rest, the previous candle serves as stop.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
GBI and RBI - possibility of stop

Like all existing setups, there is indeed a real possibility of a stop when it comes to a
Gbi or Vbs;

The important thing is to keep in mind whether the correct identification and conceptualization of the setup was made.
and the stop was placed correctly;

When we are operating, we often force certain operations without observation of

all requirements for the trade;

● The percentage difference in accuracy between Loc1 and Loc3 in these setups is significant. We have few.
situations in which a Gbi or Rbi in loc1 is stopped, however they exist and must also
to be considered. There is no and there will never be a set up with 100% accuracy!!!

● The stop should only be considered EFFECTIVE if all the steps have been taken.
correctly.
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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Concept and Identification

CDB: Purchase of climate decline;

CAS: Climate advance sale;

After 5 consecutive bearish candles (CDB) or 5 consecutive bullish candles (CAS),

we have the possibility of the main force closing, which could generate an interesting counter flow;

This counter flow will only be interesting after the appearance of a reversal candle.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Operational

The purchase of the CDB or the sale of the CAS must be done upon overcoming and upon loss.
respectively, from the reversal candle;

IMPORTANT NOTEA BT, TT, or a candle is taken as a reversal candle.

of opposite color with considerable body;

We can already consider a reversal candle on the 5th candle;

Stop: 100 points no mini index, above or below the reversal candle, and 2 points in the mini dollar above or below the
reversal candle;

Target: region of around 20

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Quality

The CDB and CAS without a respective support or resistance zone, which we call in the void,
it is of low quality. We consider resistance or support zones, strong clear regions
in larger timeframes or the m200 itself;

We should not think about CDB and CAS with the m20 close by.

The stop must also be considered, since we are in a trade against the trend.

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THE THREE TYPES OF CDB AND CAS

In terms of quality, we have three types that increase or decrease the quality of the setup:

-CDBs and securities backed by the M200: highest possible quality;

-Cdb and Cas in loc5: average quality;

-Cdb and Cas in the void: low quality;

All these situations allow entries but the operator must understand that the higher the quality
but the higher the accuracy percentage, the setup will have what will definitely influence the number of lots employed.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Positive points, negative points and filters.

CDB and CAS in strong support and resistance regions, respectively, can mark
bottoms and tops of the day leading to significant movements in favor of the Master Trader.

It can create confusion regarding the entry, due to the need for correct identification.
do reversal candle.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Practical Visualization

In the following example, we have a case of maximum quality, those that are supported by the mm200. We have
I want to remember two very important details that could be decisive for the operation:

-o stop must have 2 points of buffer from the reversal candle in the dollar and 100 points in the mini index;

- The total target is at mm20. However, during the operation, this tends to fluctuate significantly, and we must change the
our target with each change in her position.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
CDB & CAS - Possibility of stop

Regardless of the quality of the CDB or the CAS, there is a real chance of a stop.

The important thing is to keep in mind whether the correct identification and conceptualization of the setup was made and the
stop was placed correctly;

The stop should only be considered if all the steps have been done correctly;

In the next slide, we see a CDB of the highest possible quality supported by the 200-day moving average generating a stop.
effective that later proved to be a violin as it was on the original target afterwards.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS & VSS - Concept and Identification

VBS: Velez Buy Setup;

VSS: Velez Sell Setup;

When we have a trend, we should take advantage of every pullback opportunity.

or a clear rebound to continue surfing in the same way;

Starting from 3 pullback or bounce candlesin favor of the mediawe can think
in a purchase (VBS) or in a sale (VSS) to continue following the trend.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS & VSS - Operational

It is a setup to be operated always in favor of the trend;

Entry: from the 3rd retracement candle or the 3rd bounce candle, the entry must be changed.
For the 4th or the 5th candle if that is the case, with no problem if the 4th or 5th candle is of another color;

Stop: at the highest maximum immediately after the VSS candle

or in the highest minimum immediately of the VBS candle;

1 to 1 of the stop;

Final: 2 for 1;

Note: the setup activation must be above the mm8 VBS or below VSS.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS & VSS - Quality

The best VBS and VSS are found when the market has been open for a longer time;

VBS and VSS at the beginning of the market have lower quality because there is still no trend.
pre-established;

VBS and VSS that are far from the averages have less quality;

The highest quality is found in VBS and VSS that already take place with the market
mature during the day, that is, with a defined trend and that are as close as possible to the 20-day moving average
characterizing a LOC1;

One must also pay attention to the size of the stop.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
Bull 180 / Bear 180 - Concept and Identification

It is Oliver Velez's preferred setup.

The central idea behind this setup is a race, on the part of large institutions,
in the sense of strongly and definitively canceling the previous movement.

Due to this rally, we have a larger candle engulfing either partially or totally.
the previous candle.

When we talk about partially engulfing, it means practically engulfing.

the entire previous candle.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS & VSS - Breaking the Rule: The Traps of the Market

The example above was intentionally placed because there will be Vbs and Vss that will escape in one, in this case, or
In more detail about the original setup and the operators that will enter will gain. These are the traps of
market benefiting for the hour those who did not follow the prescribed rules;

The rules prescribed for each setup in this booklet have been carefully tested in situations where
the operator benefits more, that is, breaking any prescribed rule will significantly reduce the possibilities of
consistency on the part of the operator;

Remembering that all these concepts were carefully studied for the Brazilian market.
To operate in international markets, the operator must test each specific situation.

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS AND VSS – PRACTICAL SITUATION

The operation of the Vbs and Vss is very clear and objective to operate. An important detail to be
observed is the issue of the change in the entry that should be made as the candles are
formed;

Next, we will observe the examples:

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MAIN SETUPS OF THE OLIVER VELEZ METHOD
VBS AND VSS - POSSIBILITY OF STOP

As with all existing setups, there is indeed a real possibility of a stop in regards to a.
Vbs or Vss;

The important thing is to keep in mind whether the correct identification and conceptualization of the setup was made.
and the stop was placed correctly;

When we are operating, we often force certain operations without observation of

all the requirements for the trade;

● The stop should only be considered EFFECTIVE if all the steps have been completed.
correctly.

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THE LOCATIONS OF THE OLIVER VELEZ METHOD
Adaptations

As we have seen, for there to be a trade, we must have the combination of an ideal setup with a
specific location that will tell us whether we should enter with more or fewer batches.

A full understanding of this issue will lead the operator to think less at the time of entry,
what will lead to a greater mechanization of the operation, when it has already been proven that this
will leverage the gains.

In terms of strength, we have Loc4 as the strongest location of the method.

This location, being very strong, I adapted for our market, transforming it into a setup,
that we will see next.

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THE CONSISTENT AND POWERFUL LOC4

The OV method includes issues related to ideal locations for a trade.

Locations that, if well executed and understood, can generate fantastic trades.

The most powerful of the method is LOC4.

It should be used already for consistent traders for both scalping and for a position.
longer.

It is one of the best locations to properly stretch the trade.

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THE CONSISTENT AND POWERFUL LOC4
Concept and Identification

When we have the ascending M20, even if the prices at first are
below her, we should think of it as a valuable opportunity for a purchase at a price
discounted from the price that would be above it.

It only appears in situations where there are no clear setups.

LOC4 is rarer than LOC2 described in the booklet and it is also more powerful.

The difference between a LOC4 and a LOC2 lies in the distance of the formation of the reversal candle.
regarding mm20 ascending. The farther we have a LOC4.

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THE CONSISTENT AND POWERFUL LOC4
Operational

Buy on the strength of the bullish candle by dividing the position into three:

Mini index:
●1 RP: 80 pts - scalping larger lots
●2 RP: 160 pts
Final: 500 pts

Mini dollar:
●1 RP: 3 pts - scalping larger lots
●2 RP: 6 pts
●Final: 12 pts

After the 2nd RP, the stop should be moved to breakeven.

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THE CONSISTENT AND POWERFUL LOC4
Filters

How to differentiate a Loc4 from a GBI?

In the first module of the mentorship, we learned that to have a GBI,

the candle itself should be small compared to the previous ones,
becoming clear the presence of the GBI.

●In Loc4, we have a candle that is equal to or naturally much larger than the last red candle.

For us to have a Loc4, the m20 must also be ascending.

A Loc4 must also be preceded by the absence of setups.

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THE LOCATIONS OF THE OLIVER VELEZ METHOD
Adaptations | Loc2

Loc2 differs from Loc4 in relation to the distance of the strength candle from the m20.

The farther the strength candle is from an inclined m20, we can consider
a Loc4. And the less distant there is a strength candle from the inclined m20,
we are facing a Loc2.

Lembrando que a Loc4 tem mais força que a Loc2. Então, para um operador de lotes maiores,
this difference may result in greater exposure of batches (Loc4) or lesser exposure
from batches (Loc2), although both are very powerful.

Loc2 also follows the same standards as Loc4, discussed earlier as operational.
the filters.

Some examples, below, of Loc2.

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THE LOCATIONS OF THE OLIVER VELEZ METHOD
- Adaptations | Loc2: Operational
Buy on the overcoming of the bullish candle by dividing the position into two or three.

The division into three should only be done for those who are operating with larger lots for a
greater division, otherwise the exit must be made with at least 160 points in the index and 6 points in the dollar.

Mini index:
●1 RP: 80 pts-scalping-larger lots
●2 RP: 160 pts
●Final: 500 pts

Mini dollar:
●1 RP: 3 pts-scalping-larger lots
●2 RP: 6 pts
●Final: 12 pts

After the second round of profit, the stop must be moved to breakeven.
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THE LOCATIONS OF THE OLIVER VELEZ METHOD
- Adaptations | Loc2: quality and practical visualization

There are no degrees of quality to differentiate one from the other loc2 because the concept is very clear when
we need a reversal candle or a strong bullish candle with the 20-period moving average sloping upwards to generate a
entry

We have the following steps of a clear LOC2:

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THE LOCATIONS OF THE OLIVER VELEZ METHOD
- Adaptations | Loc2: possibility of stop

As with all existing setups, there is indeed a real possibility of a stop when it comes to a Loc2.

●O importante é termos em mente se foi feita a correta identificação e conceitualização do set up e o

the stop was correctly placed;

When we are operating, we often force certain operations without observing all the
requirements for the trade

● The stop should only be considered EFFECTIVE if all the steps have been carried out correctly.

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SWING TRADE, LONG POSITION
DEADLINE

353
SWING TRADE, POSITION AND LONG TERM

An efficient method should work across multiple timeframes, and the Ov method is no different in this regard.
when all the setups presented in this work can also be used for swing (until
10 pregnancies), position(weeks), or long term.

The most effective for swing trading in Brazilian stocks are VBS, VSS, RBI, and GBI.

The ones that happen in loc1 are occasional, but they are the most powerful.

In the mini index and mini dollar, these setups are also used, but for a larger
effectiveness, we should use in conjunction with other techniques such as symmetry.

Specific characteristics of the asset in question are also used to make the trade.

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SWING TRADE IN STOCKS: THE CHOICE OF THE PLAN:

The operator must choose whether to have a more or less aggressive profile in relation to swing trading.

-- aggressive profile: should activate the setup regardless of the time of day

--less aggressive profile: should wait near the closing of the stocks to then see if
does the setup in question really exist.

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SWING TRADE INDEX AND DOLLAR and the 50% retracement

Unlike stocks, I use the 50% retracement quite a bit to enter a swing trade with
this concept both in the index and in the dollar.

I only make this trade with the 50% in loc1.

It is also necessary to observe the stop that should remain below 3000 pts (index) and
100pts (dollar).

All other specific parameters of each setup must also be followed at risk as well.
like in day trading.

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SWING TRADE: THE USE OF DAILY TAILS
ANTERIOR

Tails in the log in remote areas of all measures, loc5, can generate interesting positions.
for swing trade very well located

Sometimes we have such powerful situations that the intended operation for swing trading
acaba se transformando em um day trade pois ela gera um realização parcial no mesmo dia.

In the following slides, we have some of these situations.

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SWING TRADE:PONTOS NEGATIVOS

Existe um ponto negativo real que acontece ocasionalmente em se tratando de swing [Link] se enquadra
in atypical market situations when for some reason we have large variations in sentiment
overnight investors. This results in huge gaps that can easily exceed the stop of
intended protection for the operationIN SITUATIONS LIKE THESE WE USE THE 30 MIN RULE

-30 MIN RULE: when there is a gap from one day to the next against our position bypassing the stop.
we should wait 30 minutes for the asset to settle and after that, if it remains below
our stop point we should then close the operation at the price at which it is located.

In the following example, let's assume that the trader is in a long swing position with the stop.
positioned:

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NRBS SET: LONG-TERM SETUP

One of the most efficient long-term setups triggered.

It should appear after the asset has already fallen in several waves and is located too far from
m200 in the diary

It must also be far from the m8 and m20, meaning in loc5.

It must appear as a set.

It is also possible for a set of these to mark the intraday bottom of an asset that is in a
very strong support

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DUMB MONEY AND SWING TRADE

Dumb Money: silly money, the moment when the unsuspecting have little
or no market knowledge make large investments while the big players
we resolve to realize the profits, generating a strong sales movement in the short, medium, or even
in the long run.

The objective of this concept is divided into two aspects:

● Identify locations with short-term counter-trend events for swing trading;
● Identify regions where the long-term purchase risk is high.

374
CONCEPTS

Dumb Money does not mean a market top in the longer term, although that is also the case.
possible. The Dumb Money, which happened in the index near 120k, is having its effects
presents many months later. An operator who knows this concept in depth will never
I would have made great contributions in this region, as I have explained in several of my videos on the channel.
do youtube.

375
PRIMARY CHARACTERISTICS OF DUMB MONEY

There are primary and secondary characteristics for the characterization of Dumb Money;

The more primary and secondary characteristics appear, the more interesting it becomes.
it can become the sell zone;

Primary characteristics:
●Important price regions: dollar near R$5.00; dollar near R$6.00
Index close to 100k, 110k, 120k
Larger time frames start to congest.

NOTE: we consider the break of a historical high for an asset as the regions.

376
SECONDARY CHARACTERISTICS OF DUMB MONEY

Diary in what we call, through the OV method, Loc5 or Two Levels of Space, or even
Three Levels of Space:

Prices far from the m8, which should be far from the m20 and which, in turn, is far from the m200.

Diary already in Loc5, with the next day's opening in a strong upward gap or with the intraday.
in a successive and massive wave of increase.

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DUMB MONEY AND SWING TRADE IN STOCKS

In actions, only the secondary characteristics of Dumb Money should be considered.

Every breakout of a historical peak of a stock has this probability, but the higher ones
opportunities will come from stretched breakouts at the top.

Operational: sell at the loss of the 1 red candle.

-target: partial at the day's minimum
-final: region of structures more distant from support
-stop: 0.5% above the candle that generated the sale

IMPORTANT NOTE: if the day's low is very far from the entry, the total target becomes
Interesting in this region. If the day's minimum is close, a rp should be made and then seek.
more remote support regions.

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KNOWING THE FORCES OF THE MARKET
Initial Analysis

The maximum trading level requires a deep understanding of the forces at play.
in the market at a certain moment.

Those who operate Tape Reading try to identify the entry or exit of strength through the book.
of offers.

We, graphic artists, try to identify these forces through the movement of the candles.
with their respective locations.

With identification, we are both compelled to jump out of trades that will take us.
money also entering extremely beneficial trades.

Let's analyze the following example.

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COMMON ERRORS IN THE MARKET

There are operational errors from many traders that, in the medium term, end up influencing
substantially in the final result of the same. I aim in this topic to show
the most common.

● Being influenced by certain candles during a trade, ultimately ending up closing.

the operation with gain before predetermined or even with loss without it
having been triggered by the setup. When entering an operation, the space between your
entry and its stop is considered a neutral zone that, if altered, can create inconsistency
our trades with a higher chance of unnecessary stops.
● Entering setups that have no room to run due to a support or
a resistance independent of its quality.
● Entering setups with prohibitive stops regardless of the quality of the setup.

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SPECIFIC MARKET CHANGES
BRAZILIAN OVER THE YEARS

396
MINI INDEX 2016 X MINI INDEX 2021

MINI INDEX 2016

Average in range points: 1000 to 1500 pts;
The largest ranges reached 2500 points;
●- operation in longer intraday times: 10 min and 15 min acceptable stops;
Possibility to trade larger lots with smaller accounts;
smaller noise;
possibility of making a larger martingale.

MINI INDEX 2021

●- average in points range: 1500 to 2500 pts;
The largest ranges reach 4000 pts;
●- operation in longer times in the intraday: 10 min and 15 min stops almost prohibitive;
Larger batches require much larger accounts.
greater noise;
possibility of making martingale almost zero.

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MINI DOLLAR 2016 X MINI DOLLAR 2021

MINI DOLLAR 2016

●- average in range points: 30 to 40 PTS;
The largest ranges were from 60 to 80 points;
●- operation in longer times in intraday: 10 min and 15 min acceptable stops;
less noise;
possibility of making a larger martingale.

MINI DOLLAR 2021

●- average in range points: 50 to 60 PTS;
The largest ranges easily exceed 100 points;
●- operation in longer times in intraday: 10 min and 15 min stops are almost prohibitive;
greater noise;
●- possibility of making martingale: zero.

398
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate smaller timeframes: 5min, 2min, and 1min;

operate smaller batches;
operate with larger targets;
- NEVER DO MARTINGALE;
-stop has never been so necessary;
TECHNIQUE FINELY TUNED MORE THAN NECESSARY;
- CONJUGATE INDEX OPERATIONS AND DOLLAR PLUS SHARES.

399
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate smaller timeframes: 5min, 2min, and 1min

operate smaller batches
operate with larger targets
NEVER DO MARTINGALE
-stop has never been so necessary
TECHNIQUE SHARPENED MORE THAN NECESSARY
CONJUGATE INDEX OPERATIONS AND DOLLAR PLUS STOCKS

400
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate smaller timeframes: 5min, 2min, and 1min

operate smaller batches
operate with larger targets
NEVER DO MARTINGALE
-stop has never been so necessary
REFINED TECHNIQUE MORE THAN NECESSARY
CONJUGATE INDEX AND DOLLAR OPERATIONS PLUS SHARES

401
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operating smaller timeframes: 5min, 2min, and 1min

-operate smaller batches
operate with larger targets
NEVER DO MARTINGALE
-stop has never been so necessary
TECHNIQUE REFINED MORE THAN NECESSARY
COMBINE INDEX OPERATIONS AND DOLLAR WITH STOCKS

402
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate on smaller timeframes: 5min, 2min, and 1min

operate smaller batches
operate with larger targets
-NEVER DO MARTINGALE
-stop has never been so necessary
TECHNIQUE FINELY TUNED MORE THAN NECESSARY
CONJUGATE INDEX OPERATIONS AND DOLLAR PLUS STOCKS

403
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate smaller timeframes: 5min, 2min, and 1min

operate smaller batches
operate with larger targets
NEVER DO MARTINGALE
-stop has never been so necessary
TECHNIQUE REFINE MORE THAN NECESSARY
CONJUGATE INDEX OPERATIONS AND DOLLAR PLUS STOCKS

404
NECESSARY ADAPTATIONS MINI INDEX and MINI DOLLAR 2021

operate smaller timeframes: 5min, 2min, and 1min

operate in smaller batches
operate with larger targets
NEVER DO MARTINGALE
-stop has never been so necessary
Refined technique more than necessary
-CONJUGAR OPERAÇOES DE INDICE E DOLAR MAIS AÇÕES

405
 Notes: legends barely visible

LITTLE VISIBLE LEGENDS OF MASTER MODULE SLIDES

Slide 54: difficult period for intraday purchases

Slide 55: difficult period for intraday sales
let's analyze this intraday region
Slide 58: there were buying setups that made gains, but they were not quick and stress-free for the trader.
what happened at the sale

-slide 59: bear 180, gbi

-slide 60: again some buy setups working but slow and stressful for the trades, gift of
sale, gbto. Note: observe the ease of the sell setups in contrast to the buy ones.
Slide 62: What is the trend of the dollar at the moment? Should buying or selling be easier?
-slide 63: bear 180, rbi, trem das 8
distortion in the diary
slide 66: distortion in the diary
important top in the diary
slide 76: strong rise, look at the time, very strong opposite movement
406
PRIMARY CHARACTERISTICS OF DUMB MONEY

There are primary and secondary characteristics for the characterization of Dumb Money;

The more primary and secondary characteristics appear, the more interesting it becomes.
it can become the sell zone;

Primary characteristics:
●Important price regions: dollar near R$5.00; dollar near R$6.00
Index close to 100k, 110k, 120k
Larger time frames start to congest.

NOTE: we consider the break of a historical high for an asset as the regions.

376
 Notes: legends barely visible

LITTLE VISIBLE LEGENDS OF MASTER MODULE SLIDES

slide 220: where high clear, smaller top Tm

slide 221: clear high wave, pullback, attempt to make a new high, Tm candle
slide 222: clear high wave, clear pullback, attempt to make a new high, Tm candle
-slide 229: Tm candle not applicable, little space for the mm20
Slide 265: Note: we have a typical gbi candle. The candle in question is much smaller than the previous candle.
also the mm20 sloping down which leaves no doubts
Slide 340: bullish candles, even with the price drop, the 20-day moving average continues to rise
slide 391: the day started low but did not lose the bottom, it was accumulating until breaking through all the averages for
Any trade on the selling side should be stopped immediately after the Be.
Slide 392: the day started, the bass player got congested and broke and tried to break downwards but quickly returned and broke the
maximum. Note that the accumulation was long and different from the previous one as it spent much more time in decline.

408
Acknowledgements

I am immensely grateful to everyone who contributed in some way to

this material:

my mentor and tutor Oliver Velez who definitively opened my

mind in the art of trading;

my students who, with their questions and doubts, me

enabled to increase and improve the quality of explanations

making the material as didactic as possible;

my assistant and business partner for the ideas and the help provided.

-
409