Quick summary of how i usually view the markets.
In terms of market movement, i tend to view them as either Ranging or Trending market environments.
- Trending environment means that price has a general direction it is heading based on High Time Frames market structures. BULLISH Market structure refers to higher highs and higher lows, while BEARISH Market structure refers to
lower highs and lower lows.
- Ranging environment means that price usually just oscillates within the range with no clear direction. This is also refer to chopping markets, making it harder to trade since there is no clear trend. Hence, usually i drew up a range and
take trades around the range low / high and trade it to the other side. EG Long range low, targeting range high.
For spotting of trade opportunities, i look to take trades near High Time Frame structure. By refining my entry, stop loss and target based on Low Time Frame structure, i am able to maximize my Risk:Reward ratio of the trade setup by aligning with the Macro trend.
Setup type: H4 Significant Flag
Levels of confluence:
1) Weekly Range Low
2) H4 Demand zone proven itself previously when price dipped into it and rallied to make another higher high (Confirmation of demand)
In terms of market movement, i tend to view them as either Ranging or Trending market environments.
- Trending environment means that price has a general direction it is heading based on High Time Frames market structures. BULLISH Market structure refers to higher highs and higher lows, while BEARISH Market structure refers to
lower highs and lower lows.
- Ranging environment means that price usually just oscillates within the range with no clear direction. This is also refer to chopping markets, making it harder to trade since there is no clear trend. Hence, usually i drew up a range and
take trades around the range low / high and trade it to the other side. EG Long range low, targeting range high.
For spotting of trade opportunities, i look to take trades near High Time Frame structure. By refining my entry, stop loss and target based on Low Time Frame structure, i am able to maximize my Risk:Reward ratio of the trade setup by aligning with the Macro trend.
Setup type: H4 Significant Flag
Levels of confluence:
1) Weekly Range Low
2) H4 Demand zone proven itself previously when price dipped into it and rallied to make another higher high (Confirmation of demand)