Let me show you something most traders

will go their entire careers without

ever noticing. Every time you pull up a

chart, no matter the pair, no matter the

time frame, there's a hidden structure

underneath the price. You won't see it

on indicators. You won't hear about it

in mainstream trading education, but

it's there quietly guiding every move

the market makes. Once you understand

this structure, you stop feeling like

the market is random, and you start to

realize that there's a very specific

sequence playing out over and over

again. I call this sequence the master

pattern. And after I walk you through

it, you're going to start spotting it

everywhere. In trends you thought were

messy, in reversals you thought were

unpredictable, even in those strange

whipssaw moments you could never quite

explain. It's all part of one repeating

cycle. And once you see it, you simply

cannot unsee it. I'm going to teach you

everything about this pattern and then

I'm going to give you a basic strategy

you can go use immediately. My name is

WDE Guth. I've been a trader for over a

decade and have taught this to literally

thousands of traders all over the world.

I own a specialized trading software

company called Trade ATS that thousands

of traders rely on to help them read the

hidden structure beneath all markets.

I've been around the block and I know

what I'm talking about. Now, before I go

any further, I want to be fully

transparent with you. I didn't invent

the market. I didn't invent price

action. I didn't invent the

psychological forces behind supply and

demand. What I did do, and what Trade

ATS has done for over a decade, is take

the pieces discovered by traders before

us and integrate them into one unified,

highly functional model. Traders like

Richard Wyoff and Jesse Livermore were

observing versions of this pattern as

far back as the early 1900s. In fact,

most of your smart money concepts gurus

and traders out there have been

influenced by what these 1920s traders

figured out long ago, whether they know

it or not. And good on them. It makes

sense that more people are starting to

finally look into these timeless

insights that have been handed down to

us. They're truly the foundation of

building the consistent approach all

traders are after. Over the years,

through tens of thousands of hours of

research, coaching, and real market

trading, I expanded the structure,

refined it, built a consistent

methodology around it. What I'm showing

you today is our interpretation of those

timeless observations, our framework for

understanding how markets truly behave.

It's simple. It's powerful. It's not

theoretical, and it works on every

single liquid market. Let me ask you a

real question. Why are you watching this

genuinely? Why did this video catch your

eye? If you're anything like the tens of

thousands of traders I've worked with,

the answer is somewhere between

curiosity and frustration. Because deep

down, you're still trying to make sense

of the chaos. You're still hoping

there's a structure that explains why

the market moves the way it does. And

you shouldn't feel bad about that. Most

traders spend years learning indicators,

patterns, systems, and strategies

without ever understanding the mechanism

that drives price. I have personally

coached traders who have been searching

for the holy grail strategy for

literally over 20 years. They felt so

much relief and clarity once they

learned what you're about to learn right

now. You know, when you think you've

found a great new strategy, but you

secretly have a pit in your stomach

because you doubt how long it may work?

Well, the master pattern completely gets

rid of that sick feeling. You won't have

it ever again. Here's why the master

pattern is different. It gives you an

objective explanation for every single

price movement the market makes. It

gives you a framework that never

changes. It gives you a way to think

like institutions, not react like

retail. It stops you from constantly

switching strategies or trying the next

new thing. It shows you how the market

is actually organized behind the scenes.

Once you understand this pattern, you

literally can't look at a chart the same

way ever again. Now, it's time to go

deeper.

[music]

All markets naturally organize

themselves into three distinct phases.

Most traders can't see this because

they're looking through fogged glass in

the form of multiple technical

indicators. But if they would simply

delete all of their indicators and take

a really long hard look, they would see

that the market operates in sequential

phases. And these phases are happening

in every liquid market and on every time

frame all the time. These phases are

what we call the master pattern. Phase

one is contraction. This is where the

market compresses. You'll see lower

highs and higher lows forming

simultaneously in what looks like a

wedge pattern. It's a tightening of

price, almost like a coiling spring.

[music] This is where buyers and sellers

are in balance. And this balance creates

what we call fair market value. Fair

market value is the most important price

on your chart. It's the level

institutions quietly anchor to. This is

also the area where beliefs about future

price start to neutralize. Since price

has paused and contracted into a tight

range, people are unsure of what's going

to [music] happen next. This creates the

perfect opportunity to manipulate the

masses, which leads us to the next

phase. Phase number two is expansion.

Expansion begins the instant price

breaks out of the contraction box. But

here's the part 95% of traders miss.

Expansion is not the start of the trend.

Expansion is the market's exploration

phase. One major thing is needed to

drive a trend. You need the higher time

frames to wake up and get involved.

Since the higher time frame players

operate on a longer outlook, they're

getting involved in a move will keep

price trending and stabilize the trend

at new levels. You could think of the

expansion phase as the marketing

campaign to recruit higher time frame

players to join a side. The expansion

also provides an easy environment for

the rapid accumulation of inventory for

institutions. This is the phase where

most traders get chopped to pieces

because they confuse expansion with a

breakout. Expansion happens for one

reason, to unlock the liquidity and

higher time frame commitments needed for

the real move. Phase number three is the

trend. This is the phase everyone wants.

It's the clean directional move. The

trend begins after the expansion has

completed its job. It's the orderly

movement away from previous fair value

to a new area where the market begins

the entire cycle over again. To recap,

the market phases are contraction,

expansion, and trend after which it goes

into a new contraction and repeats the

entire cycle over and over again. Now,

just to emphasize what I've been talking

about, I want to show you a quick

preview of what our software does, which

it basically spots all of the master

pattern cycles that are at play

currently in any market on any time

frame. So, right here, I have a 1 minute

chart in gold. You can see we have a

contraction [music] here. It goes into

the expansion phase, and we're working

with this fair market value. We also

have another contraction point here that

is also in expansion. So, we know

[music] that it's only a matter of time

before price picks a side based off one

of these fair market value lines and

goes into that trend phase. If we look

in the back here, here's a contraction

expansion [music]

and then it trends away from fair market

value. If you look up here, here's

contraction, [music]

goes into the expansion phase. There's

your trend phase, away from fair market

value. This is a cycle that I'm talking

about that repeats over and over and

over again. All you have to do is

[music] spot that tightening of the

market. Look for that tightening point.

Look for the expansion phase and mark

out your fair market value and work from

that level. [music] That's going to

really open your eyes to how these

markets really work. Now, I want to

shift gears a little bit to talk about

something that destroys more accounts

than bad risk management, bad entries,

or even fear. Changing. [music]

Changing strategies, changing

indicators, changing time frames,

changing markets, changing risk rules,

changing systems. Every time you see a

losing streak, every time you change,

you reset your learning curve. You start

over. I want to give you an analogy to

really make this stick. [music]

Imagine you're trying to become a great

basketball player. On Monday, you play

on a standard court. On Tuesday, your

court's shaped like a triangle. On

Wednesday, it's a circle. Thursday, it's

a zigzag. Friday, it's shaped like a

star. How would you ever master the

game? That's exactly what traders do

every time they switch strategies.

They're playing a different version of

the game every week. Meanwhile, the

banks, their court never changes. Their

rules never change. Their strategy never

changes. They don't wake up and switch

methods because they lost a trade. They

run the exact same playbook over and

over again because it [music] works. And

here's something to really think about.

When you run billions of dollars and

need to make a decent return to keep

your investors happy, you really don't

have a lot of flexibility in your

approach. You don't care what EMA

setting is the best for today's session.

All you're really interested in is how

to move the money of the crowd into your

account. And this comes down to waiting

for the overreactions, the

underestimations, and the [music]

mistakes of others. The master pattern

is the closest thing you will ever get

to the actual market court the bank

plays on. And once you commit to it,

consistency [music]

finally becomes possible. There's a

Federal Reserve working paper showing

that market depth, which is the amount

of available opposite side orders,

directly determines how price moves in

response to large trades. When there

isn't enough opposing liquidity in the

market, even a large institutional order

will cause much bigger price movements

because there simply aren't enough

resting orders to absorb it. In other

words, [music]

you can't generate big returns or

meaningful price movement unless there

is sufficient opposing liquidity

available to transact against. That

means the market isn't some

unpredictable random walk theorybased

machine. It's a liquidity dependent

machine where price moves only when

there's enough supply and demand to

actually trade. And here's another

powerful confirmation of what we teach.

In a 2020 interview, Ray Dallio, founder

of Bridgewwater Associates, the largest

hedge fund in the world, said, "Almost

all market movements can be explained by

cycles of accumulation and distribution

driven by liquidity needs." That's

literally what we call the master

pattern. It's accumulation, expansion,

and trend or distribution, and then it

repeats. The biggest players in the

world are publicly acknowledging the

exact mechanics this framework is built

on.

>> [music]

>> So now I'm going to show you exactly how

you can map out the master pattern on

your charts and do it in a really really

accurate way. And then as soon as I'm

done with that, I'm going to show you a

basic strategy that you can get started

with that will blow your mind. So first,

how do you find your contraction points?

Well, that's pretty simple. You look for

those areas where price is funneling

down and getting tighter and tighter.

That's the first clue. But that's not

the only thing you want to look for. The

next thing you want to look for is this

type of expansion activity where you in

this case we broke out of the low of

this range and then we break out through

the high right after. This is critical

because what this tells you is that the

sequence is in place. We have the

contraction, we have the expansion, that

exploratory phase and then at that point

you could draw draw out fair market

value and that'll be your pivot point

that you're working from. [music] So

this is the area that you want to look

for your best entries in. You want to

find your entries on these lows or these

highs as that expansion funnels out. The

critical part to this if you really want

to have a really nice way to map out

your charts is to look for displacement

between cycles. There's a lot of boxes

and a lot of contractions you could find

all over the chart. But you want to let

the cycle fully play out. If you

accurately identify this area and this

area, you know that it's only a matter

of time before we get that displacement.

Make sure you wait before you put

another box on your screen. So, as you

can see, we have the displacement and at

that point, we start looking for it to

start over again, which gives us a brand

new reference point that we could start

trading within those expansion legs.

This is the best way to do it. You don't

need to over complicate it. Just look

for this general type of activity and

you'll be on track. So, here's a basic

strategy that you can start implementing

right away. And believe me when I say

this, this can revolutionize your

trading overnight. Literally, it's a two

time frame setup that you want to use.

You want to have your higher time frame,

which is going to control your

directional bias or which direction

you're going to be trading in at any

given time. And then you're going to

have your lower time frame, which is

where you will enter and exit the

market. A lot of people ask, well, what

time frame pairing should I use? For day

traders, scalpers, a 4 hour and a 5

minute works really good. If you're

going up on the time frames, a daily and

a 30 minute or a daily and a 15-inut

works well. If you go up above that, you

start getting into a weekly and an hour

or a weekly and a 4 hour. And then up

above that, you're going to start

getting into the the monthly and the

daily or a monthly and a 4 hour also

work too. But you can kind of feel

around for what works for you in regards

to that. So we have our higher time

frame and our lower time frame. Here's

the magic. Here's what makes this so

special is the higher time frame. You

don't need to overthink this. We're just

looking for where that overall flow of

money is going. But when you define that

fair market value like we just talked

about and the master pattern phases, you

know what's coming next. You know the

market is typically going to contract.

You know it's going to expand. But the

trick here, which is almost like insider

trading, is this higher time frame gives

you the knowledge of where the

displacement or that expansion phase is

likely to result. And in this case, if

the higher time frame is going up,

that's the stronger flow of money, the

more stable flow of money. We know that

the distribution or the trend phase is

likely one way or another going to leave

this level and go up to here. So how do

we trade that? We get our contraction

phase. We mark out our fair market

value. We look for those first two legs

of expansion. And since we know where

the market is fairly valued and you know

the trend is overall going up. If you

buy below that value, there is a very

very very high chance that these

positions will return to fair market

value. This is your money in the bank

because once you get above fair market

value, the price has revalued to what it

should be in trend. This right here is

all on the house's money. So, you should

be trying to buy under fair market value

and then sell above fair market value.

Now, when you do this, the basic

strategy, this puts you in line with how

the banks trade. Let me explain how real

fast. When the banks are trading,

they're looking for people to make the

wrong decision so that they can take the

other side of the liquidity. When we get

below an equilibrium point like this

that's expertly mapped out, then you get

traders that think the move is over and

they're going to sell below fair market

value. What that does is it creates a

pool of people that are likely making

the wrong decision. So when you time

your entries with these phases, you

accumulate in the same areas the banks

are accumulating because it just makes

sense to the banks know that this trend

is not over. There's so much higher time

frame momentum pushing it. It's not done

yet. So anybody that sells right here is

there's a highly likelihood that they

are going to lose. Therefore, you want

to trade with them. So as you accumulate

from those people, you match what the

banks are doing. And then as it goes

above fair market value, the opposite

happens. Traders rush in in a in a FOMO

uh inspired manner. They start buying up

the market cuz they're always chasing

and then you sell to them. So you are

buying from traders that are thinking

that the trend is over when it's not.

And then you are selling to traders that

are rushing in in FOMO. Therefore, this

fair market value and this model puts

you always opposite to the dumb money.

That's the magical moment. That is

incredible and that's why this works so

well. Here's what I want you to take

away from this lesson. Price in every

market is always in this cycle. And

every candle belongs to one of those

three market phases. When you understand

the cycle, you start to understand the

intention of the institutions that run

price. And when you understand the

intention, you can anticipate price in a

way most traders will never experience.

Your win rate, your confidence, and your

consistency are all tied to one thing.

how accurately you could identify the

phase the market is in. Master this

framework and you'll no longer feel like

you're trading in the dark. You'll be

reading the market the way institutions

do. That's the end of lesson two. If you

found this information valuable,

remember to like and subscribe. We're

going to be dripping out the rest of

this master class over the coming weeks.

So, make sure that you don't miss out on

that. If you are interested in what we

do at Trade ATS, make sure you check out

the links in the description. You visit

our website and check out all of our

cool stuff that we have there for you.

Until next time, we'll see you on the

next video.