1-I will trade PB only
2-MB will be used for retesting purpose only (MB Top as S for buy/ MB bottom as R for sell). When looking for Areas of confluence on multiple TF no need for overlaping. However, when looking @ a single TF, I need the 3 tails over-crossing each other and both MBs H/L.
3-Set up matching Multi TF Horizontal S/R (red= confluence of 4H & a higher TF turning point ; blue= D/W/M turning points)
4-The only Fibonacci to be used are the Historical ones (Retracement & Fan gotten from monthly chart)
5-Always analyze the scenario before placing any entry & always look for at least 3 elements of confluence, Is there enough confluence? Confluences to be considered are:
[ul]
[li]S/R (blue & red)
[/li][li]Failed to complete a gap
[/li][li]MB H/L failed breakout
[/li][li]HL or LH
[/li][li]Fibonacci
[/li][li]Interception of past MB H & MB L as S/R
[/li][/ul]
6-Until further notice avoid choppy/sideways movement unless a really obvious signal appear
7-No matter what, always follow my analysis (see example below). I also need a daily analysis so that I can make sure where the market is most likely to go
As it can be seen, if I would follow my daily analysis I would know in advance where to look at in the 4H for an entry
8- A PB is a valid PB if:
PB Momentum
Tail has been rejected by 21d
Tail has been rejected by 8d
Tail has been rejected by short term S/R
Tail has been rejected by confluence event zone
Tail has been rejected by long term S/R
PB Position
PB is protruding from chop
PB is clearly protruding from surrounding bars
PB has retraced from a MB Top/Bottom
PB is retesting a previous daily swing
Compulsory
PB body is <=35% PB range. The smaller the body the better (i.e. gravestone, dragonfly)
Entry rules:
-When MB H/L or J pattern is involved: @ MB H/L +/- 3 pips
-Any other scenario, when the nose is broken
S/L:
a fix 40 pips (4 H charts)
T/P:
@ next S/R level
Exit:
if a potential counter pattern appears before hitting my target (i.e.MB) I will roll over the S/L to the breakout point if there is/are indecision bars within a MB then I use them as exit.
Risk Reward:
2:1 minimum but looking for a 3:1. meaning that once profit are beyond 2:1 I should secure that profit always until I get more experience.
A valid piercing:
In order to be considered as a valid confluence signal when PB pierce a S/L, I need at least 25% of PB range in the other side to confirm the false break. if 100% of the body is in there, it will be only considered as false break only if it is the 1st bar after breakout yet it will need other 2 element of confluences (i.e. MB H/L, S/R, J pattern, HL/LL or HH/LH) to be regarded as valid false break.
