Just stick to market structure --> HHs, LLs, BOS - to know the direction
for execution of entries: buy upon a retest of a sell candle and sell upon a retest of buy candle (to enter in a trade with minimal draw down)
Market Structure
follow:
1. d1 directional bias? trend or countetrend?
2. tracks left by price using stops and imbalances?
in a nutshell, trading is about price reaching for stops and filling up imbalances.
Don't just look at the BOS. You must consider the directional bias, liquidity and the fractal nature of the market. Your selected trades are based on the short-term side (internal range liquidity) and that means higher risk as you were trying to trade against the trend (bias). There's nothing wrong at doing that but you must be aware that it might be a very short-term move.
We have learnt what is OB now will discuss price inefficiency/imbalance/fair value gap.
The gap between the wicks when price just go in one direction and forgets to tag the last sell candle.
The gap between the wicks when price just go in one direction and forgets to tag the last sell candle.
Below is a D1 chart i felt A - order block is mitigated by B (the next to B candle is SL hunting and but stays under B before going short) and next C is the OB which makes the BOS and D the last daily candle is a doji or confused, we need to see how many orders are in C OB, if next daily candle disrespects the C-OB orders and retest it again and GBP may goes bullish to 1.4
please correct me at any point you feel me to be corrected, it is how i am seeing it and it may not happens and below Weekly OB comes into the picture
1st there's bos and green ob. price expected to go down from there.
however the impulse candle cut through the ob like butter.
the green order block now becomes a breaker block.
price could not even reach the blue ob.
in other words the breaker, previously acting as resistance, now become support.
one important thing to note is how strong is the candle that breaks the ob.
however the impulse candle cut through the ob like butter.
the green order block now becomes a breaker block.
price could not even reach the blue ob.
in other words the breaker, previously acting as resistance, now become support.
one important thing to note is how strong is the candle that breaks the ob.
i prefer it to be near ob. sometimes price did not touch ob but touched imbalance. so considered filled.
1. the structure break to the downside.
ready to sell on retracement (to an order block).
exit at the fractal you choose.
2. the structure break to the upside.
ready to buy on retracement (to a breaker).
exit at the fractal you choose.\
ready to sell on retracement (to an order block).
exit at the fractal you choose.
2. the structure break to the upside.
ready to buy on retracement (to a breaker).
exit at the fractal you choose.\
f your bias is long, keep on looking for a level suitable for long entries.
1. 2 big long candles - some one has big orders, then sold somewhere at top.
2. small down candles (less intention to short) until to the base of original up candle in 1 above.
3. higher high higher low - long bias.
4. depending whether one was there to catch the 3rd low or not.
5. caught one at resistance turned support zone, with round number, fib 62 and ob.
6. htf last 3 d1 candles showing hh hl.
7. every good intention analysis will be disrupted by short term volatility.
1. 2 big long candles - some one has big orders, then sold somewhere at top.
2. small down candles (less intention to short) until to the base of original up candle in 1 above.
3. higher high higher low - long bias.
4. depending whether one was there to catch the 3rd low or not.
5. caught one at resistance turned support zone, with round number, fib 62 and ob.
6. htf last 3 d1 candles showing hh hl.
7. every good intention analysis will be disrupted by short term volatility.
1M chart opened only after HTF Imbalance filled + OB touched in confluence with market structure (higher highs/lower lows), round number, session open (anticipating first hour of NYSE to send traders into wrong direction) and the basics - Liq. grab, OB, BOS, FVG (Imbalance) etc. This is the basic of the basics. Ive marked 1. 2. and 3. rules on LTF chart as the thread rules say - this is done after we have the HTF confluence along with basic market structure (LL+LH). We also had HTF equal highs liquidity grab and now price retested that area. So both higher & lower timeframe liquidity grabs.
We also have the economic sitautions going on (shorts favorable) along with US30 taking out the London high (as they are correlated this was another extra confirmation for me). As we should always look for some kind of buystops/liquidity taken out to get short positions in.
As I believe these are all very good confluences and aslong as Your patient enough to wait for those Your trades can eventually run into double digits RR easily, just like this one did. To summarise we had same confluences on higher timeframe (HTF) and then same confluences on lower timeframe (LTF).
As SL goes - Usually I go with tight SL as im entering on 1M, so never afraid to book a loss and place it just below/above Liq. grab & round number combo as I believe price has done the business already there and if it goes there it most likely will keep going and I gotta accept that im wrong.
TP-s - look at the market same way if you would be a buyer, where would You wanna get in? (LTF/HTF OBs, FVGs, liquidity pools, supply/demand zone etc).
I usually have lowertimeframe 5m/1m (OB+FVG) targets and leave rest (optional runners) for HTF swing low/high liquidity, ob, fvg etc or till change in basic market structure (HH/LL). Preferably high reward & low precalculated comfortable risk trades.
We also have the economic sitautions going on (shorts favorable) along with US30 taking out the London high (as they are correlated this was another extra confirmation for me). As we should always look for some kind of buystops/liquidity taken out to get short positions in.
As I believe these are all very good confluences and aslong as Your patient enough to wait for those Your trades can eventually run into double digits RR easily, just like this one did. To summarise we had same confluences on higher timeframe (HTF) and then same confluences on lower timeframe (LTF).
As SL goes - Usually I go with tight SL as im entering on 1M, so never afraid to book a loss and place it just below/above Liq. grab & round number combo as I believe price has done the business already there and if it goes there it most likely will keep going and I gotta accept that im wrong.
TP-s - look at the market same way if you would be a buyer, where would You wanna get in? (LTF/HTF OBs, FVGs, liquidity pools, supply/demand zone etc).
I usually have lowertimeframe 5m/1m (OB+FVG) targets and leave rest (optional runners) for HTF swing low/high liquidity, ob, fvg etc or till change in basic market structure (HH/LL). Preferably high reward & low precalculated comfortable risk trades.
To the positions: If im really confident on HTF candles and I got time to monitor then im trying to pyramid (something like that: ICT Mentorship - Learn How To Read Forex Price Action - YouTube) eg first position 1lot- second 0.5 etc and then just keep trailing the SL cause usually market makes lower lows, lower high/higher highs, higher lows - so I try to squeeze out as much as possible and trail it cause it shouldnt validate the last LTF OB if theres enough confluences (anticipating we can ride the 1m structure). This is kinda difficult to explain, gotta take into account alot of things e.g average daily range, volatility, power of 3 - if theres alot of low volatility/ranging action, then You can expect big moves soon to come and this is where you can squeeze the most out with trailing SL by just moving SL behind 1m structure and keep adding more on pullbacks (ob+fvg retests). Ideally SL should be in profit that much that if price pulls back and Your second/third pyramid scaling position goes into SL You dont lose anything/exit with small profit. If market keeps respecting the 1m structure - You gonna win big time. Big wins, small losses & small wins. If you look todays Nas it went into nearly 1:20RR - same entry but if one would trail the SL behind 1m structure (so 3/4 of the daily range is caught just by trailing SL + additional scalings so its actually over the daily range You can catch- thats actually huge). It just recently broke the 1m structure (bullside) after significant daily swing low liquidity taken and thats the power of the trailing SL. Now imagine if one would pyramid this thing from the same place i started shorting, it would be like 1:50 RR? Ok no pyramid but same risk and then just trail SL, its like 1:100RR+? (add more on 1m pullbacks).
I try to live by the words i heard once - "the day you start scaling up into winning positions - this is the day You become a real trader". Logic behind this is usually people/beginners try to close too early cause market might turn around and then scale up into losing trades and then blow up their accounts etc but once You actually make that pshyology twist then its gamechanger and ofcourse it has to be strategical scaling along with risk parameters.
I try to live by the words i heard once - "the day you start scaling up into winning positions - this is the day You become a real trader". Logic behind this is usually people/beginners try to close too early cause market might turn around and then scale up into losing trades and then blow up their accounts etc but once You actually make that pshyology twist then its gamechanger and ofcourse it has to be strategical scaling along with risk parameters.
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