I would like to share with you two of my trading strategies here, which are (1) basic structural trades (BST), and (2) advanced price patterns (APP).
Just a quick introduction on the system, the BST performs better when market is in a trending phase, and the APP performs better when market is in a ranging, consolidation phase.
The timeframe that I trade on are mainly the H4 and H1, with the Daily timeframe as the bigger, overall analysis.
Indicators that I use for this system are mainly the (1) fractals, and (2) fibonacci tool. I like to keep my chart clean and simple.
Some basic technical knowledge that I assume you are familiar with are (1) how to identify support and resistance, (2) understanding whether market is ranging/trending, and (3) how to use and read the fibonacci tool.
I will be posting live examples here as I analyse the markets to give you a better and clear understanding of how these strategies work.
If you have any questions, feel free to ask them too!
Since there are few potential Cypher setups, I will be sharing with you what are the criteria for a valid Cypher setup today.
The first step you need to do is to define an impulse leg. An impulse leg is basically a strong upward/downward movement in the market. Once you have identify the impulse leg, the next step is to use a fibonacci tool to measure the impulse leg. We label the starting point of the impulse leg as X, and the ending point of the leg as A.
The first criteria: Price has to retrace at least to the 38.2%, but not exceeding the 61.8% level of the impulse leg (X-A). We label this point of the first criteria as B.
The second criteria: Price has to bounce off these zone, and hit at least the 127.2% but not exceeding the 141.4% extension of the impulse leg (X-A). We label this point of the second criteria as C.
The third criteria: Finally, price has to come back to the 78.6% retracement level of the X-C leg. We label this point of the criteria as D.
It is around this D area that we are interested at. Either a short or long opportunity, depending on the initial direction of the impulse leg.
This is the very first video I did where I also shared a little on the Gartley pattern.
The strategy structure for your trading system was good and also clear. Basic knowledge and updated information are the main two factors to be considered in any trading system.
