intact 1hr market structure on $btc but 4hr still making lower highs and lows i will be cautious here to get into a major swing trade scalping is better rewarding as of now
intact 1hr market structure on $btc but 4hr still making lower highs and lows i will be cautious here to get into a major swing trade scalping is better rewarding as of now
Horizontal levels that is classic support and resistance. Although this is not purely algorithmic concept but it works well.
Look at these 3 charts and these 3 levels. How well price respects these levels. 🚨we are not looking to enter in trades at these levels. We are looking for confluences to take trades.
>basic idea is to identify levels at which price has reversed in past. >price tends to react at some specific levels and our aim is to use those levels as a confluence to our trading setups. •These levels should be used and drawn only on htf. •Works best on 1day and 4hr time frame. •Not wise to draw these levels below 4hr time frame.
■HOW TO IDENTIFY THESE KEY LEVELS >we start with 1day timeframe for macro perspective and then move on to 4hr and 1hr. > look for levels at which price has reversed twice or more times in past. >shortcut:- use line chart instead of bars for easy identification
■INCREASE PROBABILITY OF LEVELS >to increase probability of reactions at these levels look to draw a box around these key levels and tag all nearby wicks with that particular box. >use these htf levels and look for htf+ltf reversals at these levels to trade.
■IMPORTANT NOTES 1. these levels wont always work use them as confluence to increase probability of winning 2. these levels will work best on htf(1day 4hr) will work for 1 hr as well but i wont suggest using in below 1hr time frame 3. look for atleast 2 tags on a certain level. 4. as retail logic or basic ta always suggest support turns into resistance and vice versa i personally wont advice you to trade on breakouts 5.confluece to look out for with s/r -trendlines, -monday range, -frvp, fibs 6.width of box would increase as you move on smaller timeframe which means that the level range is big at which we are expecting a reversal thats why i suggest to use them as confluence and not to trade.
■Most important concept among all. •A trader will be profitable if he reads market structure correctly. Setups wont matter if you are able to read structure correctly ●Very important concept this You may have heard price is fractal That is true but how do we use that. •IF WE HAVE HTF BULLISH ORDERFLOW THEN WE LOOK TO HOLD LONGS ON LTF AND SCALP SHORTS. IF WE HAVE HTF BEARISH OF THEN WE LOOK TO HOLD SHORTS ON LTF AND SCALP LONG. Taking recent pa for example •HERE HTF IS BULLISH and as you can
$btc trade breakdown -->overall bearish orderflow + 4hr sfp confirming the trend -->retracement in premium and we look to go short -->1hr sfp(liquidity sweep) as first trigger -->entry after msb and it did 10r again #btc
■WHAT TRENDLINE IS FOR ME. •you may have used trendline when you started your trading journey. everyone does that and usually starts with breakout trading and eventually fails cause there are tonnes of fakeout and its almost impossible to be profitable.
•i personally use trendlines to mark out liquidity that too on 15m timeframe. •we wont use trendlines as support and resistances. We will be marking highs and lows in slope and they will act as liquidity for us. ●these trendlines and curvelines