Market structure profile

Discussion in 'Systems and Methods' started by brians1128, Jul 17, 2013.

  1. brians1128

    brians1128 Well-Known Member

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    hi again im sure everyone saw that beautiful setup for london open overnight(est time zone is mine) i just want to share one of the other set ups that happened during us session. and how we can spy smart money who chase liquidty after an explosive move.

    After that move upward we saw a pullback before price trading back up again and set up the ote at 61.8% at around 8:15 for an ote long just after ny open(healthy 50 pip swing) with smart money chasing liquidity we saw price drop pass the NYO ote and right into stop territory just before london close which also happened to coincide with yesterdays high and todays open which ultimately took us higher

    /Users/Brian/Desktop/Screen Shot 2013-07-17 at 12.45.41 PM.png
     
  2. brians1128

    brians1128 Well-Known Member

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    attachment
     

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  3. jack

    jack Administrator Staff Member

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    I had nearly the same setup targeted just now.. only on EURUSD instead of GBPUSD.

    I wanted an entry between the resistance turned support (top purple line), and the pocket of PA you see below (where it consolidated then moved out quickly, the lower purple line.)

    I didn't get fancy with my entry, it was right between the lines instead of what I usually do which is break my position size up into 2-3 entries and get a blended price so long as it's within my target zone for the trade.

    As it was racing up, the move was so violent I kept pulling my take profit higher and higher... it was originally only at 1.31275, but when I see explosive momentum like this I usually extend my TP and set my stop at BE or a nice trailing level behind it.

    In this case, I tightened my stop up to as low as 2 pips once we got really high and left my TP where it was, the stop took the trade out (but with 2 pips trailing, that's going to happen pretty quickly) but the overall trade got about double the return I was first gunning for, so I'm happy.
     

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  4. jack

    jack Administrator Staff Member

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    Candidly, I don't catch moves like this too often. But if you're suggesting it's a timing thing between NYC mid-day as London close then I'm entirely open to researching a bit more into this and see if I can catch more of these moves.

    My only logic to get in was an initial 2:1 RR on clear support and what I call a 'pocket' which is just an area of consolidation before a quick move away from it (Sam Seiden style S/D zones, though not following his exact rules, just using the concept as an area of interest for me to keep an eye on.) Getting ~3.5:1 RR and moving my TP was just a result of the way it moved after getting in (when we run like that, I'm always open to seeing if it will go further.)
     
  5. brians1128

    brians1128 Well-Known Member

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    great trade jack! 8)

    i am a strong believer of lining up price(s/r, ote) with time i feel when time and price line up it really reduces fakeouts and helps to reduce risk. i stalk set ups to form in the 2am-4am time frame(est time) and again for nyo, 7:30-about 10 est. and a counter trend or continuation trade(not always ) by 11:30 as london closes up trades to go home and ny closes trades to go to lunch it gives a bit of a kick sometimes. but those are the only times i look to innate trades as usually by 1pm est most liquidity is dried up and price remains rangebound until smart money starts accumilating again in tokyo
     
  6. brians1128

    brians1128 Well-Known Member

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    here are the 2 other trade set ups for today which shows you also the importance of time and price and how it helps eliminate false signals and fake outs 1 is an ote long at a key s/r level at london open and the second was an ote at nyo in the continued direction we know as london left all the clues for us.
     

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  7. brians1128

    brians1128 Well-Known Member

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    Im gonna show you how time affects almost every one of my trades

    Lets start by zooming out and seeing the range that we are trading in, quiet basically it is the high at 1.3205 down to 1.2993 and i draw a fib from high to low to subdivide the range

    going back to yesterday and eur/usd we had a nice long entry off a double bottom with support from tokyo high right at 1.3097 between 8-9am est. price and time both on my side the trade is successful. As the price traded up into my ote to go short i ended up taken a short position around 11:30 est as time went by into early afternoon liquidity had already dried up which took me out of the trade for a slight loss. Problem is 11:30 should really be used as a scalp in my opinion sometimes theres no momentum behind it and thats a key thing to learn from my mistakes i tried to beat the market instead of trading the way that ict and the others have taught me.

    going into today i used that swing high and daily high of yesterday and build a market structure profile which lead to me not forcing the trade and allowing time and price to line up which is showed by the last attachment
     

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