when you are back testing, Make sure you are actually seeing what you are doing, its so important to look for things that you aren't necessarily trying to see, For example, I spend way more time studying my losses during a back test so that I can try to identify something that may have saved me from pulling the trigger.
but in this instance, Something I have never really spotted before with the OTE set up, Look at that correlation between price movement and divergence on the volume. Volume tells the story here, Price pushing hard to our level, Then volume strikes out, Unfortunately I cannot provide a lower time frame image, But feel free to look at NY session 10 NOV 21 and see it yourself.
do you think the volume spike was a swing failure, an attempt to catch the last chunk of liquidity before bringing price down???
hunterprotocolFX
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@ryanc49, Essentially, Yes. but rather than a failure per say, I believe it was a pre meditated market move by the "big boys" The essence of the OTE is price being moved to a zone where "BB" can take a discount entry combined with liquidity swipes by running equal highs. they move price to said location to take liquidity, The number one thing to understand in this scenario is the BB needs your liquidity, If you are a retail trader you don't need there's. BB needs to run stops to take profits = Liquidity, and thus they will, As market movers, Make moves to retail stop losses. When you view the chart with that in mind you see tones of stuff that wasnt clicking before. just look how that bar ran the equal high, Anyone who had stops at that level just paid the bill.
ryanc49
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@hunterprotocolFX, yeah makes sense, im not too clued up about OTE could you explain what you're meaning when you refer to that?
hunterprotocolFX
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@ryanc49, ohh my fault, Optimal trade entry, The idea that there will be an optimal zone of entry or "discount" entry that will run against the trend to create a discount by in for the continuation of the higher time frame move.
@hunterprotocolFX, you will never believe I have just spent the past 25 mins watching that guys videos hahahaha what is the chances of that, very very interesting I am actually really looking forward to studying this method, I am glad I stumbled upon your page! I upload 3 times a day to mine but I trade crypto, you should upload more! I want to learn :)