As part of the #project1001pips @Ichimoku_Trader www.tradingview.com/u/Ichimoku_Trader/ and @Fxprotrader www.tradingview.com/u/Fxprotrader/ generously gave of their time. A great thank you goes to them. I have learnt a lot as part of the Wichi Team and felt I needed to summaries what I have learnt and check with the team if my understanding is correct. Also to give back to the project1001pips.
This is my summary for the week:
We only control entry and exit (Stop Loss and Take Profit).
You have to get permission to enter using the signals the market gives.
Step 1: Identify which of the four market types we are in
1. Trending:
In a trending market lines act as S&R.
1.1. Without obstacles
1.2. With obstacles: Look left for flat SSB
2. Ranging:
In range market the lines lose their S&R value.
2.1. Tradable
2.2. Breakout
Step 2: Find key zones
Top down approach. Use higher timeframes >4h.
Horizontal and diagonal support and resistance lines.
Fib levels
Pitchforks
Pivot points
Ichimoku
Step 3: Entries
1. Entries on Trend
In a continuation the Critical Level ("CL") is not broken.
Angle of "TS" and KS indicates momentum.
1.1. On retrace
Retracement begins when KS goes flat
Buying zones:
The 3 buying zones are actually areas where we should expect the traders of the 3 timeframes to be affected.
Area 1: Lower TF will be affected by this retracement. Price will go under their KS and people will start either getting out of their positions or joining in the selling
Area 2: The people on the current TF will be affected
Area 3: The people on the higher TF will be affected
By the time we cross the "CL" (critical Level), most of the traders we care about have either closed their positions or actually switched to a sell
1.2. On break of "TS" after it has been counter trend
1.3. On the breakout of H/L
2. Entries on Breakouts
SSB100: Flat for long (100candles)-Bracket market using last high and low
KS25: Flat for more than 25candles - Bracket market using last or previous high and low
3. Entries on Reversals
Reversals seldom happen. The market is 80% in a continuation.
There first has to be a trend to have a reversal. To confirm a reversal and go counter trend the KS must turn down. "CL" is placed to achieve that (Placed were KS will turn).
Trend reversal is confirmed when "TS", KS and SSB align into the new trend.
Final determinant of the market after all retracements is the "CS" reaching the SSB.
"CS" breakout or bounce at the SSB.
This is my summary for the week:
We only control entry and exit (Stop Loss and Take Profit).
You have to get permission to enter using the signals the market gives.
Step 1: Identify which of the four market types we are in
1. Trending:
In a trending market lines act as S&R.
1.1. Without obstacles
1.2. With obstacles: Look left for flat SSB
2. Ranging:
In range market the lines lose their S&R value.
2.1. Tradable
2.2. Breakout
Step 2: Find key zones
Horizontal and diagonal support and resistance lines.
Fib levels
Pitchforks
Pivot points
Ichimoku
Step 3: Entries
1. Entries on Trend
In a continuation the Critical Level ("CL") is not broken.
Angle of "TS" and KS indicates momentum.
1.1. On retrace
Retracement begins when KS goes flat
Buying zones:
The 3 buying zones are actually areas where we should expect the traders of the 3 timeframes to be affected.
Area 1: Lower TF will be affected by this retracement. Price will go under their KS and people will start either getting out of their positions or joining in the selling
Area 2: The people on the current TF will be affected
Area 3: The people on the higher TF will be affected
By the time we cross the "CL" (critical Level), most of the traders we care about have either closed their positions or actually switched to a sell
1.2. On break of "TS" after it has been counter trend
1.3. On the breakout of H/L
2. Entries on Breakouts
SSB100: Flat for long (100candles)-Bracket market using last high and low
3. Entries on Reversals
Reversals seldom happen. The market is 80% in a continuation.
There first has to be a trend to have a reversal. To confirm a reversal and go counter trend the KS must turn down. "CL" is placed to achieve that (Placed were KS will turn).
Trend reversal is confirmed when "TS", KS and SSB align into the new trend.
Final determinant of the market after all retracements is the "CS" reaching the SSB.
"CS" breakout or bounce at the SSB.