Yes indeed, the principle of this system is based off the fact that we do not know where price action truly wants to go, but we at least know where the previous price consolidation zones are, and if price action has not went near to that zone, then there exists an increased probability of market liquidity (limit orders, buy/sell stops) remaining in that area that would cause some price reaction when price action heads over to that price range. The second principle is based off that fact that we do not know how much liquidity exist in that marked zone, so the TPSL is always pegged to the ATR of that market timeframe to ensure that we conform to a realistic retracement amount backed by historical evidence. Also, I personally avoid red impact news whenever they are scheduled for the day. This allows me to keep track of my system with as little randomised factors as possible.
The putative swing low is an interesting concept which I have been observing for the past few months. There is indeed an increased probability of price action reacting from a previous swing low, and from the gold market, I have observed that price action usually starts to retracement 1-2 candles away from the swing low point. It’s a potentially viable trading system indeed.
Appreciate it Tommor. I found that cycling through the timeframes offers me more contextual evidence of my marked price zones to be increasingly validated instead of solely relying on just 2-3 timeframes. It’s tedious but it’s worth the mental investment, at least for me 