MULHAM
TRADING
T H E
INVERSE
BLUEPRINT
A 3-Step ICT Mechanical Strategy
for Beginner to Advanced Traders
TABLE OF CONTENT
1
2
3
4
5
6
7
8
PREREQUISITE
Fair Value Gap
1
Inverse Fair Value Gap
2
Singular vs Multiple
3
FRAMEWORK
High Probability IFVG
4
Order Flow & Market Structure
4
Types
5
MY FAVORITE MODEL
My Favorite Model
7
TIMING
Killzones
8
Macros
8
TRADE MANAGEMENT
Entry
9
Stop Loss
12
Breakeven
13
Take Profit
14
CHECKLIST
Checklist
15
EXAMPLES
Examples
16
CONCLUSION
CONCLUSION
20
PREREQUISITE
FVG
“Fair Value Gap”
A 3 candle pattern that is created
when:
1. Bullish ➤ First candle high does
not overlap with third candle low
2. Bearish ➤ First candle low does
not overlap with third candle high
MOSTLY WILL BE
FILLED & WILL
GIVE FAIR VALUE
TO BUY/SELL
This FVG will usually be filled and
respected, pushing the price higher if
bullish and lower if bearish, especially
when it aligns with the higher time
frame. But what happens if it's not
respected?
1
When a FVG is not respected (confirmed by a
candle closure above or below), it transforms
into an Inverse Fair Value Gap (IFVG)!
Similar to the flip between Support &
Resistance, when a support level is invalidated,
it flips to act as resistance. This holds true for
Order Blocks, which transform into Breaker
Blocks, just as Supply zones switch to Demand
zones and vice versa when breached.
In simpler terms, when any of these levels or
zones are disregarded, they typically shift from
bullish to bearish, or vice versa. Our focus will
center on understanding this transition between
bullish and bearish trends using FVG & IFVG!
IFVG
“Inverse Fair Value Gap”
Closing above/below a FVG is the
primary factor to classify it as an
IFVG, but its subsequent behavior
could vary. Here are some possible
scenarios to consider:
1. Rapid movement up/down in a
single direction.
2. Retesting of the IFVG (sometimes
around 50% retracement).
3. Formation of an FVG within the
IFVG and filling it (creating a
Balanced Price Range).
A Balanced Price Range (BPR) occurs
when two FVGs overlap, creating a
zone of overlap that defines the BPR.
2
Closure below, but
no retest
Closure above
Retest of IFVG
SINGULAR VS MULTIPLE
One crucial observation from all the charts above:
when seeking the creation of an IFVG, focus on
identifying a single FVG within that trading range,
avoiding multiple consecutive FVGs. When
encountering three consecutive FVGs, there might
be only one FVG on the Higher Time Frame (HTF),
and while the price might disregard two, the third
could hold. In such instances, we're likely to
witness no body closure on that HTF, alongside
the singular FVG on the HTF being respected.
3
FRAMEWORK
HIGH PROBABILITY IFVG
Yes! Our strategy revolves around the
IFVG. However, we won't be executing
trades for every IFVG we encounter.
Instead, we'll concentrate solely on
particular IFVGs generated after price hits
specific levels, within specific time slots.
ORDER FLOW &
MARKET STRUCTURE
We won't always be correct, but it's
crucial to track the order flow and market
structure by observing:
How PD Arrays are respected
How PD Arrays are violated
How short-term highs/lows are swept
How price is disrupting the structure
with displacement
Bullish Order Flow & Structure
X
X
BOS
BOS
BOS
BOS
X
X
Bearish Order Flow & Structure
4
TYPES
As mentioned earlier, we won't trade any IFVG but
only high probability ones. We'll primarily focus on
two main variants:
1. Price being rejected from a FVG (alternatively,
an Order Block or POI). As price approaches the
FVG, it should form a single FVG. The crucial
aspect here is the violation of this singular FVG
with a body closure after the initial rejection
from the first FVG.
2. Price sweeping a liquidity level. Similar to the
first scenario, as price heads towards this
liquidity level, it should create a single FVG. The
key is the violation of this singular FVG with a
body closure after the sweep, followed by the
price returning into the range (Power Of 3)
Beyond these primary variants, there are numerous
other scenarios with additional confluences that
fall under these two main setups. This specific
framework is what will provide us with the high
probability setups!
POI
IFVG
5
FVG ➜ IFVG
1. Bearish FVG
2. Bullish FVG On The Way
Up Inside Of Bearish FVG
3. Candle
Closure Below
Bullish FVG
Making It IFVG
SWEEP ➜ IFVG
1. Liquidity
Sweep
2. Bullish FVG
After Sweep Is
Violated By
Body Closure
6
MY
FAVORITE MODEL
Bearish FVG
Bearish BOS
Induement
($$) Below
FVG
Clear Draw
On Liquidity
Body Closure
Below Bullish
FVG
Bullish FVG
As Going Up
Into Main
Bearish FVG
The key distinction between the initial framework I
presented and this one lies in the latter's
requirement for a clear Break Of Structure, along
with an inducement (liquidity) positioned just
below/above the FVG (which can also be inside it).
This setup enhances the probability of that FVG.
Moreover, since we await the Break Of Structure, we
now have a distinct DOL (Low Hanging Fruit).
7
TIMING
KILLZONES
KILLZONE
TIME
ASIAN
20:00-00:00
LONDON
2:00-5:00
NEW YORK
7:00-10:00
ALL TIMES ARE IN NEW YORK TIME ZONE
MACROS
A Macro is a period in which the algorithm seeks
out buy side or sell side liquidity, or endeavors to
rebalance the price at a point of interest between
the opening and closing times of the Macro
Accumulation
[Creates Liquidity]
distribution
[Expansion]
Manipulation
[Liquidity Sweep]
Trade This!
8
London
NY AM
NY PM
2:33-3:00
8:50-9:10
11:50-12:10
4:03-4:30
9:50-10:10
13:10-13:40
-
10:50-11:10
15:15-15:45
TRADE
MANAGEMENT
ENTRY
There are various ways to enter after the violation
of the Fair Value Gap (confirmed by a candle
closure above/below it), and the choice of entry
method is personal. Each entry criterion comes
with its own set of pros and cons.
1
BODY CLOSURE
This is the most basic entry
criteria. Simply when a
candle closes below/above
the FVG, the IFVG is created
and we can enter with the
body closure
Pros: No missing trades
Cons: Not the best price to
enter, Lower Reward to risk,
fakeout sometimes (not a
closure on HTF)
9
Entry
2
IFVG RETRACEMENT
After the violation (candle
closure), we wait for price to
retrace back into the
beginning of the IFVG.
Pros: Better reward to risk,
better entry
Cons: It is possible to miss
trades as price sometime
does not retrace
3
Entry
50% IFVG RETRACEMENT
After the violation (candle
closure), we wait for price to
retrace back not into the
beginning of the IFVG, but
the 50% of it!
Pros: Better reward to risk,
better entry
Cons: It is possible to miss
trades as price sometime
does not retrace back to
50% of the IFVG
10
Entry
4
FVG + FVG [BPR]
This is a very high
probability entry. We are
looking for price to violate
the FVG with a FVG. Entry
can be at:
➤ Beginning of the FVG
➤ 50% of the FVG
➤ Beginning or 50% of
Balanced Price Range [BPR]
which is the overlapped
zone of two FVGs.
Pros: Very high in
probability entry, better
entry & Reward to Risk
Cons: Missing trades
Entry
All entry types are effective! You simply need to
adapt one based on an understanding of its pros
and cons, finding the approach that aligns with
your personality, account, and risk management.
You'll delve deeper into this in the next chapter!
11
STOP LOSS
When it comes to the stop loss placement, there
are different approaces to follow.
1
SWING HIGH/LOW
Stop loss is placed
above/below recent swing
high/low
Pros: The safest level to
place stop loss
Cons: Lower Reward to risk
Stop
Loss
2
IFVG VIOLATION
No fixed stop loss prior to
entering the trade, but it will
depend on the closure above
/below the IFVG. If that IFVG
we entered from is violated,
then we exit immediately. It
will be more of a manual SL
Pros: Higher Reward to risk
Cons: Price could close
above then reverse
12
Stop
Loss
BREAKEVEN
ou have the freedom to choose whether to move
your stop loss to breakeven at a certain point or
not. The methods outlined below are the ones I
use to manage my trades and stop loss.
LOW HANGING
FRUIT
RULE OF 50
After the price
reaches 50% of the
original RiskReward (RR), move
the stop loss to
breakeven and
consider taking
50% of the profit
(optional)
After the price
sweeps liquidity
from the nearest
high/low, move
the stop loss to
breakeven.
13
TAKE PROFIT
To decide where to take profit, it's crucial to
comprehend the market movement you're
engaged in. Ask yourself whether the price is
moving from external to internal or vice versa.
Observe where the price is reaching and its
intended direction. Another simple approach is to
aim for low-hanging fruit (nearest high/low) or the
nearest major FVG.
EXTERNAL
INTERNAL
EXTERNAL
EXTERNAL
EXTERNAL
RANGE
EXTERNAL
14
CHECKLIST
Price reached a FVG or swept liqudity
As price going into that FVG, or
sweeping the liquidity, it created a
FVG on the opposite side
Killzone or macro
Price reacted from the FVG/liquidity
sweep, and violated the FVG with
candle body closure (entry)
Low hanging fruit liquidity, low
resistance liquidity, or draw on
liquidity is clear
Stop loss placement is clear, and
reward to risk is worthwile
15
16
Pair➜XAUUSD | Time frame➜M5
Date➜29 Dec 23 | Time➜7:30
Entry: Body Closure
Pair➜XAUUSD | Time frame➜M5
Date➜29 Dec 23 | Time➜3:25
Entry: Body Closure
17
Pair➜XAUUSD | Time frame➜M15
Date➜15 Dec 23 | Time➜8:30
Entry: Balanced Price Range
Pair➜EURUSD | Time frame➜M15
Date➜27 Dec 23 | Time➜3:30
Entry: Body Closure
18
Pair➜EURUSD | Time frame➜M3
Date➜27 Dec 23 | Time➜22:00
Entry: Different entries
Pair➜XAUUSD | Time frame➜M5
Date➜20 Dec 23 | Time➜4:35
Entry: Body Closure
19
SUMMARY
At the conclusion of this mini-book, you
now possess a clear and systematic trading
plan that is adaptable across various
timeframes and currency pairs, relying
solely on Fair Value Gaps (FVG) and Inverse
Fair Value Gaps (IFVG).
Remember, practicing and backtesting are
non-negotiable if you aim to excel.
Experience is the ace up your sleeve,
enabling you to identify high-probability
setups before making a move.
Finally, a word from someone who spent
years navigating unprofitable trading
waters: halt the search for a mythical 100%
strategy. Instead, embrace simplicity and
commit to mastering it. Avoid the allure of
shiny object syndrome; it's a bottomless pit
leading away from profitability.
20