secret
JJThe market follows liquidity, I can also say that the market moves from one accumulation zone to another, the main thing is to understand which zones are still active and what to expect from the market.
Tradable zones, in fact, are just sideways, accumulation zones, when the price moves in a certain price range.
https://www.tradingview.com/x/vNT0wFTK/
Why are some zones highlighted in red and some in green? As a rule, if there were more shortists in the sideways, then we go up, if there were longists, then we go down. It works very simply. MM does not matter where it goes, up or down, MM goes where there is liquidity and is obliged to provide volatility. Now let's imagine a sidewall, where the “crowd” got into long, and then MM will go up, and what is beyond the sideline? There are no shortstop stops outside the lateral border, there is no one to make purchases, MM is not profitable, he needs to spend a lot of money to push the price up, the price returns after exiting the lateral back to the lateral, MM drags the price down, goes down beyond the lateral border, they trigger stops of longists, they sell, the price goes down. Bravo, MM did the job, provided volatility, handsome.
It is almost impossible to determine in advance in which direction the exit from the trade will be carried out. (ALTHOUGH now I believe that if you enter in the moment you were initially wrong. Mm never comes in the moment, if we are talking about a good movement, the position is always gained and therefore there are factors, which means if you enter in the moment, then you already was wrong, because this movement was predetermined in advance, and you could not identify it.) but these are only thoughts so far.
At the sight of a departing train, the crowd jumps into short without really calculating the risks and without a plan, puts a stop in the used one, then they shake them out and go down. The exit from the trades is most often impulsive due to the triggering of the stops of those who set them beyond the level, so it is extremely difficult to manage it, but another thing is on retest with some good plan and an adequate stop. Sometimes a retest can form a sideways direction, then you need to trade its range.
Takeaway
TIME FRAME - 15m - 1D
One of the best formations in terms of risk / reward ratio. This formation is formed on the breakout of the upper / lower border of the sideways, they are also local highs and lows.
The logic of the formation is quite simple, everyone loves to trade a level breakout, and this is a good moment for MM, when there is a lot of liquidity, since stops are triggered and many jump on the outgoing train, as a result, this is the situation: How to trade:
The price should return back to the trade OR close 80% of the false breakout, the amplifying signal should return with an impulse (as in the example above).
Enter when returning to the protraction zone or when overlapping 80% of the provocation.
there is a sideways trend, there is a breakdown of the lower boundary, an impulse return to the sideways direction, we pull the fibo to the “takeaway” and when 80% overlap with the impulse, we enter a long, hide the stop behind the carryover.
Terms:
Impulse return to the side
Out of the sideways no more than 66%, otherwise PP is not saved
Stop hiding clear behind the high / low stem
Enter either on the overlap of 80% of the offset with impulse return or when returning and fixing inside the side
there is a sideways trend, there is a breakdown of the lower boundary, an impulse return to the sideways direction, we pull the fibo to the “takeaway” and when 80% overlap with the impulse, we enter a long, hide the stop behind the carryover.
Terms:
Impulse return to the side
Out of the sideways no more than 66%, otherwise PP is not saved
Stop hiding clear behind the high / low stem
Enter either on the overlap of 80% of the offset with impulse return or when returning and fixing inside the side
clear takeaway by 61.8%
If the return is NOT impulsive (to retest when we go), then most likely this is a continuation of further movement towards the exit, if it returns with one or two candles, it is often a false.
The side can be considered a range with 4 touches, 2 at the top, 2 at the bottom
The traded zone is considered broken if 50% and the maximum volume of this zone have passed and fixed there (or a squeeze breakout with the removal of all stops)
Sidewall breakdown up to 66% - false in most cases
It is possible to enter the closure of a false breakout only if we have already fixed ourselves back in the sideways OR if 80% of the false (removal) has passed
If we broke the sidewall and entered the "spring" formation - we fix ourselves when passing 80% -100% of the sidewall height
In most cases, the sidewall is punched by a spreader to -0.618 (1.618%) sideways
After a sideways breakdown, in 80% of cases, a retest of the broken level occurs
If the lateral has broken through 80-100%, then you can try to place limit orders on the broken border of the lateral (if less than 66-80% - most likely a fake)
It is advisable NOT to trade a breakout, only with minimal risks and minimal amounts, and then in a very TRENDY market
NEVER open trades in the MIDDLE of the sideways, most likely there will be a stop
If there is a provocation (false / removal), then we ALWAYS put a stop for this provocation and it is better that this provocation was, because put straight behind the side - it can be dangerous to take you anywhere and the probability that the stop will be taken away is quite high
NEVER add to a losing position, it is better to pyramid a profitable