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The Low Hanging Fruit Stacey Burke setup, with Silver R4,5 shortIn this video, I walk you through my entire thought process during today's trading session. You'll learn how I selected the pairs and executed three key trades: Silver 3 Sessions of Rise Reversal short DJ30 Low Hanging Fruit Continuation short I'll also provide a detailed explanation of the Low Hanging Fruit setup, helping you understand how to apply this strategy in your own trading. Low Hanging Fruit is a key best trade setup of Stacey Burke. Don't miss out on these valuable insights and tips! For details on the Stacey Burke style trading approach see his site and playbook: https://stacey-burke-trading.thinkifi...
OANDA:XAGUSDEducation
by TC888
This Wyckoff VSA Buy in Gold and Short S&P FuturesIn this video produced by Author of "Trading in the Shadow of the Smart Money", Gavin Holmes, we see clear buying by professionals in the GC futures contract (Indicator is PB in the Wyckoff VSA system for TradingView) and clear selling into the e-Mini S&P Futures contract (Indicator is PS in the Wyckoff VSA system for TradingView). The markets move based on three universal laws, its simple as explained over 100 years ago by Richard D Wyckoff, a famous investor in the early 1900's. The laws are: Supply and Demand Cause and Effect Effort Vs Result The fourth law to success is your belief system, often referred to in new thinking as: The Law of Attraction. Enjoy the video and I hope it helps You succeed. Namaste, Gavin Holmes, Author "Trading in the Shadow of the Smart Money" and "Think-Link-Create".
CME_MINI:ES1!Education
by TradeGuider_VSA
The Multitimeframe Bias method for enjoyable trend tradingUnlock the power of Multitimeframe Bias trading! This approach aims to identify and trade with the prevailing trend and momentum by assessing the bias across different timeframes. By determining the alignment of various timeframes, you can anticipate potential rollovers and make more informed trading decisions. Fully aligned and integrated with SB Style trading, this method offers a mechanical system that prevents impulsive trades, ensuring a disciplined and strategic approach to the market. Learn how to leverage Multitimeframe Bias to enhance your trading strategy today!
OANDA:WTICOUSDEducation
by TC888
Two Roads to Profit. A Comparison of ICT/SMC and Advanced VSAHello traders and investors! When we start engaging in trading and investing, we get acquainted with various methods of forecasting price movements. Gradually, if we have enough persistence, strength, and patience, we choose our own path to profitable trades. Among the most popular approaches, we can highlight the use of various oscillators and channels, Dow Theory, Elliott Waves, Fibonacci levels, supply and demand, Volume Spread Analysis (VSA), market auction theory, and the Inner Circle Trader/Smart Money Concept (ICT/SMC). Many traders combine elements from different approaches into their trading system. I personally prefer a concept I call Advanced VSA. It’s a comprehensive set of tools that combines ideas from VSA, Dow Theory, and Supply and Demand analysis. The name "Advanced VSA" perfectly captures the essence of the method, as it is fundamentally based on analyzing volume and price spread. Recently, the ICT/SMC concept has been gaining more and more popularity. Today, I want to explore the similarities and differences between ICT/SMC and Advanced VSA. If there are any inaccuracies in my explanation of ICT/SMC basics, feel free to correct me in the comments. Perhaps after reading this article, you’ll be able to decide which approach resonates more with you and which one you believe will help you in your trading. I hope this will be helpful. Let’s dive in! Basic Differences Before diving into the technical details, let's first clarify the key differences between these concepts. Who Controls Price Movements The ICT/SMC concept assumes that price movements are controlled by large players, such as market makers, who direct prices in the desired direction. This is similar to a model where one "center of power" determines the market's direction. In contrast, Advanced VSA is based on the idea that two forces influence price — the Buyer and the Seller. All analysis revolves around the interaction between these two sides, creating a more balanced model where both forces are equally important. Traded Volume The ICT/SMC concept does not use traded volume as a part of its analysis. In Advanced VSA, volume is an important factor. It is considered an integral part of the data that helps to understand market processes and the actions of participants. Now let’s move on to a detailed comparison of the elements of these concepts. What They Have in Common Both concepts teach traders to identify price ranges on the chart where a large player (Market Maker in ICT/SMC) or a Buyer (in Advanced VSA) shows interest in buying, and ranges where the Market Maker or Seller is interested in selling. When the price returns to these ranges, traders can execute buys or sells. We can call these price ranges contextual areas for buying and selling. Neither concept relies on technical indicators. Instead, they focus on the following key terms for identifying the trade direction and the trade entry point: Trend Trend break/half-trend Trend confirmation Accumulation/Distribution/Sideways movement/Flat Contextual areas for buying and selling The first four terms help determine the direction of the trade, while the fifth helps identify the entry point and the likely target of the trade. Both methods suggest using higher timeframes to find contextual areas and lower timeframes to find entry points within those areas. What Are the Differences The differences between the concepts lie in the interpretation of key terms. For the first four terms (trend, trend break, trend confirmation, accumulation/distribution/Sideways movement), the distinctions are minor and relate mostly to specific interpretations. However, the main differences arise in the rules for identifying contextual areas of interest (buyer, seller, or market maker). Let's look at these differences in more detail. Difference 1: Use of Volume In ICT/SMC, contextual areas of interest are determined solely based on price action and candlestick patterns, without taking traded volume into account. In contrast, Advanced VSA sees volume as an integral part of the analysis. contextual areas of interest are identified by both traded volume and price behavior (candlestick patterns). If there was interest from a buyer, seller in a specific price range, leading to a price change, it's logical to assume that the volume traded in that range should be higher than in previous periods over a similar timeframe. To illustrate the importance of using all available data for analysis, consider an analogy with choosing the best time for a seaside vacation. If the decision is based only on water and air temperature, while ignoring factors like wind or rainfall, the choice may be misguided. For example, choosing April for its comfortable temperature might result in encountering constant rain and high waves. Thus, in Advanced VSA, volume plays a crucial role, whereas it is absent in ICT/SMC. Difference 2: Types of Contextual Areas of Interest In ICT/SMC, the following types of contextual areas of interest are used: order block, breaker, mitigation block, and rejection block. All of these areas are formed by a specific arrangement of candles on the chart. In contrast, Advanced VSA operates with a different set of contextual areas of interest: effort, zone, and range (sideways movement). Effort refers to a single candle or bar that indicates significant market activity. Zone is formed by a sequence of candles or bars, taking into account their traded volumes. Range (sideways movement) is defined by a series of consecutive candles/bars where price fluctuates within a limited range, interacting alternately with the upper and lower boundaries of the range. It's only possible to identify which party (buyer, seller, or market maker) controls the range after the price breaks out and confirms the move. If the volumes align with Advanced VSA's criteria, order blocks and mitigation blocks in ICT/SMC can be considered as zones in Advanced VSA. So, not all order blocks and mitigation blocks will be considered zones in Advanced VSA. The breaker will be discussed separately, and there is no equivalent to the rejection block in Advanced VSA. Difference 3. Price Attraction Points In ICT/SMC, concepts such as fair value gap, liquidity void, and liquidity are used to describe price attraction points. In Advanced VSA, the terms fair value gap and liquidity void are not utilized. Most of the time, these ICT/SMC elements correspond to price interest points in Advanced VSA, such as effort. The term liquidity has the same meaning. Difference 4. Importance of Levels In Advanced VSA, levels play an important role in identifying trade opportunities. To understand the significance of levels, let’s first recall the concepts of trend and range (sideways movement). In both ICT/SMC and Advanced VSA, a trend is broken down into components, often referred to as impulses or expansion moves. A range, on the other hand, is characterized by its boundaries and the vectors of price movement between those boundaries. In Advanced VSA, important trading signals include the defense of a broken level or a price retracement to a level followed by its defense. In Advanced VSA, the defense of a broken level or the cancellation of a breakout (where the price returns back behind the broken level) followed by a defense of that level is considered a signal for identifying trades. This method helps traders spot potential entry points where either buyers or sellers to protect a key price level, giving more confidence in the direction of the market. The most important levels include the base of the last impulse, the boundaries of a range, and the test level of a zone. In ICT/SMC, there are no direct equivalents of these elements when it comes to searching for trades. However, breakers and sometimes mitigation blocks serve similar purposes to the levels in Advanced VSA, but the approaches differ. In ICT/SMC, trades are typically executed within the breaker or mitigation block, whereas in Advanced VSA, trades are found when a level is defended: buy trades above the level (supported by buyers), and sell trades below the level (supported by sellers). Additionally, Advanced VSA allows for trading within ranges, moving from one boundary to the other, as long as the boundaries are defended. Summary Despite the shared terms and similar approaches, there are significant differences between the two concepts: Number of forces influencing price movement: In ICT/SMC, it is believed that price is controlled by a single force, the Market Maker (MM). In contrast, Advanced VSA considers the interaction of two forces—buyers and sellers—as driving price movements. Use of volume in analysis: ICT/SMC does not take traded volume into account during analysis, while in Advanced VSA, volume is a crucial element for identifying market forces and areas of interest. Use of levels for trade entries: In ICT/SMC, levels do not play an important role, whereas in Advanced VSA, levels one of the possible places for identifying potential trade setups. Good luck with your trading and investing!
OANDA:XAUUSDEducation
by AlexeyWolf
2
Don't imagine that learning trading will only take a few weeks.I've been trading since 1987, on and off. You need to be realistic about the time it takes to become profitable. You wouldn't expect to learn a skill in a few weeks of evening classes, so don't expect to become profitable in the same timeframe. Expect a year of study. Good for you if you crack it before then, but be wary of hubris. The market is set up to have many pitfalls for you, and you can make one mistake and be back to square -5 before you can say "WTF happened". If you can make 3-4% 3 months in a row then maybe you know enough to up the size you trade. While you are waiting, try these hints: Don't quit your day job because you had a big win. You have no idea how easy it is to lose what you just made. It's a "learning on the job" process. No matter how much you read or how many YouTube videos you watch, when your money is on the table and your position is going against you, you find out what trading is like. Some say (and I agree) that you aren't really qualified until you have learned your lesson with a stonking loss. Demo accounts teach you nothing. Start small. Or use a prop firm. That way you get the true experience. Protect your capital. Use a stop loss set at the price where you know your initial feel for the market was just wrong. If you think you don't need a stop loss because you are there watching it, then just wait for your first unexpected gap move to learn that one. Have a backstop, at least. People have a habit of running losses, don't be like them. Have the discipline. Don't risk too much on each trade. Great traders can get 10 losses in a row. They know it's part of the game, but that's why they don't put 10% of the account on each trade.... Examples of pitfalls: Spread hours in FX, where you get stopped out 20 pips away from the real market. (50 sometimes) Trading halts in stocks. Unexpected assignment in options. Holding a position over the weekend and a war breaks out. Thanks for listening to my Ted Talk.
COINBASE:BTCUSDEducation
by Paul_Varcoe
4
I’ve spent 8 years in crypto, and here’s what I’ve discovered ↓↓I’ve spent 8 years in crypto , and here’s what I’ve discovered ⏬ ------------------- ▪️ Throughout my journey, I’ve met hundreds of ambitious traders, but today only a few remain —those who were willing to wait and those who didn’t dream of quick profits. ▪️ According to most official studies, only 1-3% of traders make money. ▪️ Only 1% can overperform the market and earn more than a simple buy-and-hold strategy. ▪️ Intuition and prayers don’t work here; without a clear strategy , you will lose everything, I guarantee it. ▪️ The best of the best earn 100-150% annually (check the World Cup Trading Championships to verify this). Yes, there are sometimes bull markets where you can make 500% or more, but this happens only once every four years, and you need to be earning consistently. ▪️ The crypto market is changing, and this cycle is very challenging , even for professional market participants. The only way to succeed is to constantly adapt. ▪️ 99% of bloggers and influencers you follow are complete scams. Most of them won’t be able to show you a yearly trading account performance report upon request in real-time. They make money not from trading, but from you, by selling yet another course. (Always check their profitability statistics; it's the only way to verify if this person is a professional or a fraud). ------------------- Everyone is looking for the holy grail , and I searched for it too, but I found it in algorithmic trading . This trading style allows me to rely solely on numbers, clear profitability indicators, and statistics. Most importantly, it removes the human factor (staying emotionally stable, not succumbing to fear and greed).
Education
by Yaroslav_Krasko
4
How to open a Bullish Debit Call Spreads on ER play $KEYSWhy a Bullish Debit Call Spread? A Bullish Debit Call Spread is an ideal strategy when you're confident about a moderate increase in the stock price but want to limit your risk. This involves buying a call option at a lower strike price and selling another call option at a higher strike price with the same expiration date. The net effect is a reduced upfront cost compared to buying a single call option, with the trade-off being a capped profit potential. Setting Up the Trade: Strike Price Selection: Buy Call Option: Choose a strike price slightly above the current stock price of $KEYS. This is the level you expect the stock to reach or exceed after earnings. Sell Call Option: Select a strike price above the one you bought, typically at a level where you believe the stock is less likely to move beyond post-earnings. Expiration Date: Opt for an expiration date that provides enough time for the earnings reaction to play out, typically the nearest monthly expiration after the earnings report. Risk Management: Max Loss: The maximum loss on this trade is limited to the net debit paid (the difference between the cost of the call bought and the call sold). Max Profit: The maximum profit is the difference between the strike prices minus the net debit paid. Break-Even Point: The stock price at expiration must exceed the lower strike price plus the net debit paid for the spread to start generating profit. Profit Targets and Stop Loss: Profit Target: Set a target to close the trade for profit if the stock moves favorably towards the higher strike price before expiration. Stop Loss: Consider exiting the trade if the stock moves significantly against you, or if the thesis behind the trade (a strong earnings report) does not play out as expected. Final Thoughts: This strategy is well-suited for traders expecting a positive earnings surprise from NYSE:KEYS but who prefer to manage their risk with a defined maximum loss. By structuring the trade with a spread, you can participate in the potential upside while minimizing the premium paid.
NYSE:KEYSEducation
by DiYWALLST
Amateur vs. Professional GapsWhen analyzing gaps on a chart, the key question to ask yourself is this: Did this gap result from amateur traders reacting emotionally, either buying or selling? Or was it the professional traders, who base their decisions on logic rather than emotion? To determine this, there's a crucial concept you need to grasp first... Professional traders buy after a wave of selling and sell after a wave of buying. Amateur traders, on the other hand, do the opposite! They see a stock rising and, driven by fear of missing out, rush to buy – right when the pros are preparing to sell.
NASDAQ:AAPLEducation
by zerocashcool
2
Trend Strategy: Liquidity with DCF█ INTRODUCTION This trading strategy is designed to maximize your chances of success by focusing on the most favorable currency pairs and aligning your trades with strong market trends. Here’s a breakdown of how it works: 1. Identify the DCF (Daily Capital Flow) Index: Start by analyzing the overall flow of capital across various currencies. This involves identifying which currencies are gaining strength and which are weakening. By combining the strongest currencies against the weakest, you can select currency pairs that are more likely to move in your favor, taking advantage of minimal market resistance. 2. Wait for a trap play: A trap play is a market pattern where the price seems to move against the trend but then quickly reverses, trapping traders who took the bait. Look for this trap play to form in the direction of the identified capital flow. The key signal here is the price crossing the 10-period Exponential Moving Average (EMA), which acts as a trigger for entry into the trade. 3. Place your stop loss: To manage risk, place your stop loss just below the bar or candlestick that forms the trap play. This way, if the market moves against your position, your losses will be limited. 4. Stay in the trend: As long as the price remains above the 20-period Simple Moving Average (SMA) on a closing basis, you stay in the trade. This indicates that the trend is still strong, and there's no need to exit prematurely. 5. Take profit: Monitor the market for a trap play forming in the opposite direction of your trade. This suggests that liquidity is building up, and the market might reverse. This is your cue to take profit and close the trade. 6. Repeat: Once you've closed the trade, start the process again by identifying the DCF, finding new optimal pairs, and following the steps above. By consistently applying this strategy, you can leverage market trends and manage risk effectively, potentially leading to consistent profits.
ICMARKETS:XAUUSDEducation
by UnknownUnicorn57818364
1
"Know Thyself: The Ancient Greek Secret to Mastering the Markets "Know Thyself.’ This ancient Greek wisdom has echoed through time, and over the years in the markets, I’ve realized it holds the key to trading success. But most traders learn this lesson the hard way, often after years of frustration, losses, and self-doubt. To become a successful trader, you must truly know yourself. The saying "know thyself," inscribed at the Temple of Apollo at Delphi, might seem distant from the world of modern finance, but it’s more relevant than ever. The market is a mirror, reflecting who you are inside, and it has an uncanny ability to expose your deepest fears, negative emotions, and limiting beliefs. We all have traits that hinder our success—whether it’s fear, greed, impatience, or overconfidence. But rather than addressing these inner challenges, many traders look for external solutions, never realizing that self-awareness is the real key to success. In my years as a trader, I've come to understand that the most successful traders aren’t just experts in analyzing charts—they are experts in understanding themselves. They know their strengths and weaknesses and have the courage to face them directly. They recognize their emotional triggers and have developed the discipline to manage them effectively. Trading isn’t just about predicting market movements; it’s about understanding how you react under pressure, how fear can distort your decisions, and how greed can lead to costly mistakes. The journey to becoming a successful trader is as much about mastering yourself as it is about mastering the market. To truly master the markets, you must first master yourself. The market is a relentless feedback loop, constantly reflecting your inner state back at you, whether you realize it or not. When a trade is going against you, losing money, and you’re feeling the surge of anger and frustration, the market is holding up a mirror. It’s not just about the loss—it’s reflecting something deeper about your emotional state and mental approach. What are you seeing in that reflection? Is it impatience, fear, or a lack of preparation? When you find yourself revenge trading after a losing position, what's really happening? The market is showing you your vulnerability—perhaps an unchecked ego or a desperate need to validate yourself. It’s telling you what needs fixing, but only if you’re willing to stop and listen. Consider those moments when you double or triple up on positions, trying to force the market to move in your favor. What’s being reflected back at you then? Is it overconfidence? Maybe it’s fear dressed up as boldness. The market is giving you feedback—are you hearing it? And what about when you abandon your rules, chasing the allure of a quick profit or avoiding the pain of a potential loss? The market is exposing a deeper truth: a lack of discipline, or perhaps a failure to trust in your own system. It’s showing you exactly what you need to work on. Even in the good times, when you’re in a winning position but close out too early, the market reflects back your fear of losing what you’ve gained, your inability to let go, or your craving for certainty. Each of these reactions is a lesson in self-awareness. This is why trading often appears deceptively simple at first glance—yet is incredibly difficult to master. The principles seem straightforward: buy low, sell high, manage your risk. But the reality is that the market is not just a puzzle of price movements; it's a test of your inner world. It’s this challenge, this confrontation with your own psychology, that makes trading so demanding and why it takes years to truly master. Most people are not prepared for this journey of self-discovery, which is why so few actually make it. You might notice that many traders online focus almost exclusively on trade ideas and strategies, rarely discussing the inner battles that make or break a trader. This is because self-mastery is the hardest part of trading, and it’s often the least glamorous. Yet, every successful trader I’ve met or read about shares one common trait: a deep understanding of themselves. When you listen to them, you’ll hear them talk about overcoming their own internal struggles as much as they discuss their market strategies. This resonates deeply with my own experience; my biggest challenges have always come from within. But each time I’ve faced and overcome these inner obstacles, my trading has consistently improved. The truth is, the market reflects all our worst fears and attributes, as well as our strengths. The secret to success is learning to listen and understand what it’s telling you about yourself. Many traders fail because they’re unwilling to face these reflections. Instead of looking in the mirror and realizing the truth lies within, they blame the strategy, the market, the broker—anyone but themselves. But true courage in trading, just as in life, comes from facing your demons head-on . The saying "Know Thyself" is not just a call for introspection—it’s a challenge. The darkest hour is just before dawn , and it’s in those moments of greatest struggle that we’re given the opportunity to grow. By understanding yourself—your fears, your weaknesses, your triggers—you gain the strength to conquer the market. So next time you’re in a tough spot, remember the ancient wisdom: "Know Thyself." The market isn’t just a battlefield—it’s a mirror. Master what you see in that reflection, and you’ll master the markets. True success in trading and in life comes not from conquering the market, but from conquering yourself.
Education
by TheFxAce
11
Trade out of balance markets like a pro (simple TPO concept)Educational video explaining in simple terms how to identify out of balance markets and use that in your day trading. It simplifies the concepts of James Dalton from "Mind over Markets" using volume profile and TPO charts and breaks it down into actionable steps. It also covers the thinking of Stacey Burke, with price always "trading in a box". You learn the meaning of value area, point of control, other timeframe traders and out of balance markets. You learn how institutional traders act in the market and how to observe and identify what they are doing and how to follow them. This can lead to massively profitable setups and trades
OANDA:XAUUSDEducation
by TC888
Serious psychological barriersSerious psychological barriers 1) Fear of missing out The first thing you should define is your trading plan, trading method You should remember the main factors of your setup formation (Time&Price). At what time this setup is formed, the presence of a sequence (context). If you do not know when your trading idea/setup can be formed, then most likely - you do not have a trading plan or a trading setup. Remember that trading is a game of probabilities, but trading is not a game. Having a trading plan is the key, trading time, session, waiting for a possible setup to form, take notes based on what happens in each session, and in the future, some patterns can help you. Even if you miss some setup, you should not worry about it, since you know +- time when a new one will form 2) Fear of losing You need to remember that there is not a single setup with 100% or even 70% accuracy of execution! In fact, there is no point in even such a setup or searching for it! The question is always only in your risk management! Fear of losing - arises from the lack of a plan. 3) Impatience This occurs in young traders, even with a strategy, successful capital management. But, sometimes, we enter a position before we should. This requires a lot of attention, develop discipline, following the rules of your trading method. All this is due to the fact that you do not want to spend enough time on trading experience, since in most cases, when you achieve success or make a profitable decision, you will want to experience this rush of emotions as quickly as possible, so you can fix your profit ahead of time, or open a position before your setup is formed. Do not follow your emotional impulses, do not try to prove your case, just wait for the moment 4) Fear of not being a good enough trader This is a side effect of being on social networks. Social networks are the problem of the 21st century! Everyone lives by the principle of Fake it till you make it. If you think you are not as fast a learner as the guy on Twitter, and even if he says that everything is fine - remember, in reality, it is not. Most people try to pretend and distinguish themselves as "the smartest in the room". Don't let this bore you too much or make you feel inferior The most important thing is to study your statistics, your data over time, remember where you started and determine if you have achieved results since then. 5) Fear of losing streaks and drawdowns This is directly related to money management. You do not have a process, a sequence of actions, when you have a losing streak or drawdown, you must understand how to reduce the risk, how to act in this situation. This is where your trading strategy will help you, where all the risk management is described. State everything about managing your deposit, when you stop trading, when you reduce risk or when you stop trading 6) Lack of discipline and rules Listen to your inner voice that tells you: "Don't do this" but you continue anyway, you want to see what happens next. Do this outside the market, there must be clear discipline and rules that must be followed. Discipline is achieved by forcing yourself to follow a set of rules and these rules must be strict, short and detailed
Education
by Crypto4light
HOW-TO: Integrate Probabilities into Mechanical Trading StrategyIf you want to skip all the explanations and start working with the OptiRange indicator right away , skip to the last paragraph. What are the two main approaches in manual trading? In the world of manual trading, there are two main approaches: mechanical and discretionary trading. Mechanical or systematic trading is about sticking to a set of predefined rules, almost like following a recipe. Even though you're still executing the trades manually, the decisions are made based on a systematic approach that doesn’t waver. This method is designed to leverage a specific edge in the market, reducing emotional involvement and decision-making stress. Discretionary trading is a trading approach that relies heavily on the trader's judgment and intuition. Unlike mechanical trading, which follows strict, predefined rules, discretionary trading involves making decisions based on a subjective evaluation of market conditions , price patterns, news events, and other factors. Traders using this method often seek to add confluence—multiple signals or pieces of evidence—to support their trade decisions. However, this approach can sometimes mislead traders into believing they are identifying high-probability opportunities . This can create a false sense of confidence , forcing you more likely to take trades that don't actually align with any proven edge. The result is often poor trading decisions, driven by overconfidence rather than objective analysis. Why isn't mechanical trading talked about more often? Many people aren't aware of mechanical trading because most trading mentors and courses focus on discretionary trading. This method is more intuitive and accessible, especially for beginners who are interested in learning how to read charts. Discretionary trading is often seen as more engaging and gives traders a sense of control, which can be appealing. If mechanical trading is so effective, why do most mentors teach discretionary trading? Discretionary trading is easier to understand and start with It also appears to offer more flexibility and engagement. As a result, it's more commonly taught and discussed, which means many traders don't get exposed to the benefits of a systematic, rules-based approach like mechanical trading. This leads to a lack of awareness and understanding about the potential advantages of mechanical trading strategies. Why aren't more mentors switching from discretionary trading to mechanical trading? Many mentors stick with teaching discretionary trading because it allows them to cover up losses and highlight their winning trades more easily. They can always justify their trading decisions with various explanations, keeping their clients entertained and engaged. This approach creates a dependency, as clients often feel they need ongoing guidance to navigate the complexities of the market. In contrast, if a mentor were to teach mechanical trading, students would learn a clear set of rules and strategies. Once these rules are understood, traders can become independent, reducing their reliance on the mentor . This independence can be less appealing to mentors who want to maintain a steady stream of clients. Thus, the lack of transparency and the ability to mystify trading strategies keep the focus on discretionary trading methods. Why consistency is key in trading? Consistency is essential in trading because it directly affects your results. When your approach varies, such as with discretionary analysis that changes with each setup, your outcomes become unpredictable. Sticking to a set of rules, however, gives you predictable and reliable results. When you adhere to a fixed set of rules, your actions remain consistent. This consistency leads to results that are also reliable and predictable. With mechanical trading rules, you're not relying on guesswork or intuition. You have a clear, predefined set of actions, knowing exactly what to do and when to do it. What are the first steps I should be taking to become a systematic trader? The first step towards becoming an independent systematic trader is accepting that consistently beating the market with discretionary trading is highly challenging. Despite what you might see on social media—traders getting funded and posting their success—these stories are often disconnected from the reality of intuition-based trading. Many traders spend thousands on challenges, and while some might get lucky and achieve initial funding, they often end up blowing their accounts after a few emotional sessions. Instead, I want you to shift your focus to developing your own understanding of systematic trading. Know the fact that sticking to pre-defined rules and executing a mechanical trading strategy is key to long-term success. This approach requires you to take it seriously and act responsibly, adhering to a structured, rules-based system that removes emotion and improves your consistency. The second step is to study the market on your own and identify setups that occur repeatedly across multiple timeframes. Develop clear, step-by-step rules for your strategy and understand the logic behind each rule. Once your rules are written out, create a flowchart to visualize and follow them daily, ensuring you stick to the strategy without introducing flexibility. Afterward, spend several months backtesting your strategy to verify that the edge you plan to execute is genuinely profitable. This thorough testing will help confirm that your approach works under different market conditions and provides the consistency needed for systematic trading. Luckily for you, I have done it all. it took me one year to test and validate the strategy by manually going through data collection and backtesting and one year to fully code the strategy into an indicator so I can trade it as systematic as possible. I'm more than happy to share this with rule-driven individuals who are serious about excelling their trading business. ----- How does the OptiRange indicator work? Market Structure: The Optirange indicator analyzes market structure across multiple timeframes, from a top-down perspective, including 12M, 6M, 3M, 1M, 2W, 1W, 3D, and 1D all the way down to hourly timeframes including 12H 8H 6H 4H 2H 1H. Fractal Blocks: Once the market structure or current range is identified, the indicator automatically identifies the last push before the break and draws it as a box. These zones acts as a key area where the price often rejects from. Mitigations: After identifying the Fractal Block, the indicator checks for price mitigation or rejection within this zone. If mitigation occurs, meaning the price has reacted or rejected from the Fractal Block, the indicator draws a checkmark from the deepest candle within the Fractal Block to the initial candle that has created the zone. Bias Table: After identifying the three key elements—market structure, Fractal Blocks, and price mitigations—the indicator compiles this information into a multi-timeframe table. This table provides a comprehensive top-down perspective, showing what is happening from a structural standpoint across all timeframes. The Bias Table presents raw data, including identified Fractal Blocks and mitigations, to help traders understand the overall market trend. This data is crucial for the screener, which uses it to determine the current market bias based on a top-down analysis. Screener: Once all higher timeframes (HTF) and lower timeframes (LTF) are calculated using the indicator, it follows the exact rules outlined in the flowchart to determine the market bias. This systematic approach not only helps identify the current market trend but also suggests the exact timeframes to use for finding entry, particularly on hourly timeframes. According to the above trade plan, why do we only look for mitigations within Fractal Blocks of X1/X2? In this context, "X" stands for a break in the market's structure, and the numbers (1 and 2) indicate the sequence of these breaks within the same trend direction, either up or down. We focus on mitigations within Fractal Blocks during the X1/X2 stages because these points mark the early phase (X1) and the continuation (X2) of a trend. By doing so, we align our trades with the market's main direction and avoid getting stopped out in the middle of trends. ----- To illustrate how the script analyzes market data and the thought process behind it, let's go through an example. Example: 12M Timeframe: FX:EURUSD 6M Timeframe : FX:EURUSD 3M Timeframe : FX:EURUSD 1M Timeframe : FX:EURUSD 2W Timeframe : FX:EURUSD 1W Timeframe : FX:EURUSD Hourly Entry: FX:EURUSD Final HTF TP: FX:EURUSD ----- Don’t worry about understanding every detail of how the script works. It's only to show you how the indicator calculates multiple timeframe and how it guides you on when to sell/buy or stay away. Last paragraph: You can simply turn on the Screener in user-input so that the indicator instantly does a top-down analysis for you using the strategy flowchart and decides for you what hourly timeframes you should be using to get your entries. ----- Now that you understand how the OptiRange indicator works, you can start using it to execute a mechanical edge from today. If you have any questions or need further assistance, feel free to leave a comment!
Education
by Fractalyst
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