Trader's Almanac. Clear rules
1. The Principle of 'More in Less' or Elliott Waves
• Analyze fractal structures: within a large wave — 5 impulses and an ABC correction.
• Work in the direction of the higher timeframe, enter on the lower timeframe after the correction is complete.
2. Levels
• Trade from confirmed supports and resistances.
• On a breakout — wait for a retest. On a bounce — confirmation with volume.
3. Imbalance
• Look for zones where the price quickly passed without opposing orders (Fair Value Gaps).
• Return to these zones = potential reversal or continuation.
4. Consolidations and Breakouts
• Consolidation = accumulation. Exit with volume — direction of movement.
• Liquidity run (up/down) before the reversal — entry signal.
5. Volumes by order types
• Large orders → market makers.
• Small orders → retail.
• Large sales — a sign of distribution. Purchases — accumulation.
6. Capital Flow
• Entries to the exchange → preparing to sell.
• Conclusions → remove supply, bullish signal.
7. Divergences
• Price up, volumes down — false growth.
• Price down, volumes up — a trap for shorts.
8. Stop-Hunting
• Sharp breaks through key levels — liquidity collection.
• Wait for confirmation and enter on the opposite side.
9. Trade Control
• No more than 2 trades on an asset.
• Entry based on structure and signals.
• Clear stop, calculated risk.
10. Mental Discipline
• Do not trade 'on the buyback'.
• Do not hold onto losses.
• Watch your emotions: plan > feelings.
11. Keep a trade journal