Get started

Ictorderblock

TBonds (ZB1!) 4H - Trapped traders on both sides of priceTrade setup There are trapped traders on both sides of price above monthly highs & lows for TBonds ZB1! on 4H timeframe. When price comes back to either of these zones - these trapped traders will want to exit - giving us an exit! Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Strategy Pickup a pair which is highly correlated to DXY (if trading DXY or an uncorrelated instrument, ignore the correlation) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation
CBOT:ZB1!
by makuchaku
$GBPUSD - Sell Bias Setup - Sell at Breaker Clear the LowThe picture is pretty self descriptive. The next daily bias seems to be heading toward the direction of selling. There are many daily lows stacked up ready to be broken as well as an equal low setup just prior to the previous daily lows. I think during the Asian session we'll see Cable range but create equal highs and lows that it will want to break to creating a breaker that will propel it to the current breaker. I'm seeing the same Bias in EURUSD as it seems to be struggling to create a higher high. The current swing high in GU was formed from a previous breaker but the low has yet to be cleared. To be honest it could just keep going lower without pulling back for the set-up. But if it does pull back to around 1.30995 I will be looking to sell with about a 40-50 pip stop loss, but it should gain over 100 pips to break the low so well worth the risk to reward. But I like to peel off profits in case it does not get to my target so I have planned 3 TP zones and depending on price action will depend on how much I move my stop loss and where. Will be giving updates as I continue to watch this setup unfold. Edit: The S/L Depicted in the graph may be too tight. I may loosen it back to 1.31500 depending how the market is reacting. I don't want to go above the prior swing high of 1.31757 because if it breaks that, it's more than likely going higher. There could also be a lower sell at 1.30787 in which it may not get higher as that is another bearish breaker. Just another thing to watch for in this setup.
Short
by BodiesXWix
XAGUSD (4H) Backtest : 70% non-loser (net 15.75 R)Detailed backtest results - prnt.sc - Win/Loss ratio : 186% - Non losers : 70% - Net R : 15.75 R across 23 trades - Avg R / winner = 1.21 - Avg R / trade = 0.68 NOTE : DXY correlation was not used in this backtest Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY (or ignore the DXY correlation) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation How to draw the zones? Check this tutorial : Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
OANDA:XAGUSD
by makuchaku
How to draw a trade zone for false breakout / liquidity hunt?Once you spot a location to trade from (be it a liquidity hunt, or a false breakout + market structure break) - that's only half of the job. The next most important step is to draw a correct zone which gives you a safe and reliable way to enter and define your risk. I've always found that drawing zones which help you define your entry & risk is an art, more so than science. And this doesn't work for me - because if it's not driven by a process, I'm bound to make mistakes in this important step. Hence, I wanted it to be more defined - to the level that it could be given to a programmer who could code it. Primary method of drawing the zone 1) Find the candle that generated the signal 2) Draw a rectangle into left side of price on the signal candle (green rectangle) For SHORT signal => 3) Draw (yellow) zone using the highest + last UP candle which exited this rectangle For LONG signal => 3) Draw (yellow) zone using the lowest + last DOWN candle which exited this rectangle 4) If the candle right after signal candle does not test this zone, then trade this zone as a signal - ELSE - look for the secondary way of drawing the zone Secondary method of drawing the zone 1) Find the signal candle and look left of it For SHORT signal => 2) Draw zone using last UP candle which broke an HH pivot For LONG signal => 2) Draw zone using last DOWN candle which broke an LL pivot 3) Discard the zone if price revisited that zone before giving the signal There are many reasons why these zones work (if your overall trade is correct) - These will be the candles which are guaranteed to be engulfed by the signal making candle - If these are institutional trades, most likely it's here where they set the fakeout trap. Hence, when price comes back to these zones, they have no need to take prices beyond your stop loss as there's no more liquidity there - If these are those amateur folks who were trading the breakout, this is where the smartest of them bought/sold and will be the first in line to exit If you have feedback on how to improve this zone drawing process, please leave your feedback in the comments below. Cheers!
Education
by makuchaku
DXY (Dollar Index) 4H : Trapped buyers waiting to exit : SHORTTrade setup DXY (Dollar index) has trapped buyers at the top. When price comes back to this zone, they'd love an exit - giving us a short trade in the process. Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Strategy Pickup a pair which is highly correlated to DXY (if trading DXY, ignore the correlation part) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation
ICEUS:DX1!Short
by makuchaku
$XAUUSD to Pullback - 1896 to Buy and Clear Equal HighsDon't you hate it when you set a sell limit at a high that's close to equal to another one? Well that's because there's liquidity there and the banks want to take you money so it will run through your sell limit. That's why I'm waiting for the pull back to the unmitigated order block in the 15 minute time frame chart, which happens to be sitting around the 61.8% (62%) Fib level near the 1896 level, before it propels price above the near equal highs, around 1912, as my first target. The second target would be the next high after that. Today is a volatile day and I see the metals market as the place to catch the action. Let's see what happens.
OANDA:XAUUSDLong
by BodiesXWix
$AUDUSD - Likely Scenario (Buy at 0.70180)I could be completely off as I haven't seen a break in Market Structure as I'm trying to catch it before it happens, not with just this pair but EURUSD AND GBPUSD. I think If AUDUSD does break it before any others than we have a high probability of the rest of them breaking structure. I'm seeing a lot of equal highs and lows and breakers in price action. Which leads me to believe that at current price will break lower until it hits the bullish order block, which is where the buy takes place. that will then correct price above the current equal high's at the 0% of my fib. Additionally breaking previous days highs as that is what price likes to gravitate toward (previous days highs or lows) It will then bounce off the breaker to a lower point (not sure where, will have to wait and wsee what happens with price action when it gets there) but ultimately it will end up being twice the symmetrical range of what it currently is which will break the higher equal highs around .71600 The impression that I'mgetting that it will be changing sentiment is that price entered a daily order block but didn't make it to the halfway point, which usually indicates a reversale in price. Whether this happens today or tomorrow, or during the asian session, this is what I am anticipating.
Long
by BodiesXWix
1
EURUSD (4H) : Trapped buyers => SHORT trade!When DXY is making higher highs, why is EURUSD breaking the strong correlation and trying to go higher? ==> It's a TRAP for buyers! When price comes back to the marked zone, trapped buyers will exit - giving us a beautiful SHORT trade. Look for the monthly liquidity to get raided as a target! Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R
Short
by makuchaku
USDDKK (4H) Backtest : 76% Win rate (19.75 R), 82% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 433% - Non losers : 82% - Net R : 19.75 R across 17 trades - Avg R / winner = 1.52 - Avg R / trade = 1.16 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
1
GBPUSD (4H) Backtest : 65% Win rate (14.25 R), 71% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 220% - Non losers : 71% - Net R : 14.25 R across 17 trades - Avg R / winner = 1.3 - Avg R / trade = 0.84 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
4
SPY500/Emini/ES : Daily schematic of liquidity & trapped tradersThere are a whole bunch of trapped traders on both sides of price for SPY500 / Emini futures / ES1! which will want to exit, giving us a trade in opposite direction (yellow zones) Beware of the engineered liquidity zones - which are almost like a candy land for big institutions - where orders are just sitting to be taken! Those zones WILL BE poked poked! (green zones) Good luck & good trading for the election week! Please note : the zones shown here are for reference purpose only. Actual buy & sell zones should be fine tuned with a lower timeframe reference & more detailed analysis.
CME_MINI:ES1!
by makuchaku
6
USDSGD (4H) Backtest : 62% Win rate (12 R), 85% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 400% - Non losers : 85% - Net R : 12 R across 13 trades - Avg R / winner = 1.5 - Avg R / trade = 0.92 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
2
USDCAD (4H) backtest : 58% Win rate (11.25 R), 92% non-losers!Detailed backtest results prnt.sc Win/Loss ratio : 700% Non losers : 92% Net R : 11.25 R across 12 trades Avg R / winner = 1.61 Avg R / trade = 0.94 Icons on the chart Thumbs up : Trade was a win Thumbs down : Trade was a loss Circle with a cross : Trade was breakeven Cross : Did not take the trade due to one or more trade qualifiers Bug : I could not understand how to trade, do avoided trading Trade qualifiers $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) Dollar bill icon : Liquidity was present behind the stop loss Strategy Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management Reduce 50% at 1R => Trade becomes risk free Reduce further 25% at 2R AND move SL to break-even Close trade at 3R Winner = 1.75R Variables Avg winner = 1.75R PS : Please excuse the busy chart!
by makuchaku
6
EURUSD (4H) backtest : 69% Win rate (12.75 R)Detailed backtest results prnt.sc Win/Loss ratio : 300% Net R : 12.75 R across 13 trades Avg R / trade = 0.98 Avg R / winner = 1.42 Icons on the chart Thumbs up : Trade was a win Thumbs down : Trade was a loss Circle with a cross : Trade was breakeven Cross : Did not take the trade due to one or more trade qualifiers Bug : I could not understand how to trade, do avoided trading Trade qualifiers $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) Dollar bill icon : Liquidity was present behind the stop loss Strategy Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY, the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management Reduce 50% at 1R => Trade becomes risk free Reduce further 25% at 2R AND move SL to break-even Close trade at 3R Winner = 1.75R Variables Avg winner = 1.75R PS : Please excuse the busy chart!
by makuchaku
My two $EURUSD Sell Limits Same as I had earlier this morning. The Asian session solidified my thoughts. Having two positions just in case it retraces deeper than first thought. See related chart for this mornings idea on the pair. Also sometimes you need to break down to the 5 MIN and 1 MIN chart for specific price action movements for these determinations but still using the daily chart as my overall directional bias. I place the fib on the bodies of the candles in the 5 min chart, wicks can differ wildly depending on broker. This gives you the best accurate reading of the chart from a fib standpoint if you want to enter at 62% or 71.5%.
Short
by BodiesXWix
$EURUSD Short - Pulling Back For Another SellI have two depictions as to what could happen and one may have already happened but I don't think so. It has barely touched the 15 minute order block for it to be selling already and there's too much movement in the 5 min chart that Il'll show here. There are two 5 min order blocks that price could reach before returning lower. The first around 1.8305 and the second around 1.8412. This could used to add another position to a swing sell I have that related to this idea (which is why you see the TP1 running through the middle of my charts) or it can be a quick 20-30 pip scalp. depend on which position you choose and which it actually goes to. it appears to be enticing buyers with a stop loss but I don't think that's all it's doing is trying to attract buyers. Fingers Crossed.
Short
by BodiesXWix
GICHSGFIN (4H) Backtest : 69% win rate across 13 trades => 11.4 Detailed backtest result : prnt.sc Non-looser = 77% Icons on the chart Thumbs up : Trade was a win Thumbs down : Trade was a loss Circle with a cross : Trade was breakeven Cross : Did not take the trade due to presence of liquidity (equal highs/lows) behind the stop loss Variables Avg winner = 1.6R Strategy : wait for market structure break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders.
NSE:GICHSGFIN
by makuchaku
USDCHF (4H) Backtest : 60% win rate across 20 trades => 14.2 RDetailed backtest result : prnt.sc Non-looser = 75% Icons on the chart Thumbs up : Trade was a win Thumbs down : Trade was a loss Circle with a cross : Trade was breakeven Cross : Did not take the trade due to presence of liquidity (equal highs/lows) behind the stop loss Variables Avg winner = 1.6R Strategy : wait for market structure break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders.
by makuchaku
RUSSEL (4H) Backtest : 68% win rate across 19 trades => 17.8 RDetailed backtest result : prnt.sc Non-looser = 84% Icons on the chart Thumbs up : Trade was a win Thumbs down : Trade was a loss Circle with a cross : Trade was breakeven Cross : Did not take the trade due to presence of liquidity (equal highs/lows) behind the stop loss Variables Avg winner = 1.6R Strategy : wait for market structure break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders.
CME_MINI:RTY1!
by makuchaku