2 POI Selection Flashcards
What runs the market?
Demand & Supply.
Everything we see on the charts (impulse, correction, structure etc) → Is The Interaction between → Supply/Demand -
By monitoring Supply & Demand what can we understand?
Who is in control
How did they take control
Where did they take control
In it’s basic form -> We view Supply/Demand the same way we view structure
Bullish structure -> Demand is in control
Bearish Structure -> Supply is in control
When looking at Supply, we are looking for…
An unmitigated Buy before a Sell candle (B2S) that breaks something to the left (BOS, iBOS, Demand break)
When looking at Demand, we are looking for..
An unmitigated Sell before a Buy candle (S2B) that breaks something to the left (BOS, iBOS, Supply break)
When looking at Supply, we are looking for..
An unmitigated Buy before a Sell candle (B2S) that breaks something to the left (BOS, iBOS, Supply break)
When can we class a Demand/Supply level as mitigated?
In theory they can only be mitigated once they have broken structure
What are the 7x POI Selection Criteria
- Is the POI visible S/D PA on m15 or above? ✅ ❌
- Is the POI a BTS/STB engulfed candle? ✅ ❌
- Did the POI break something to the left? (BOS, iBOS, S/D) ✅ ❌
- Does the POI have valid interaction (or an extreme that breaks something?) ✅ ❌
- Does the POI/area run liquidity? ✅ ❌
- Does the POI have inducement? ✅ ❌
- Is the POI in P/D of something relevant? ✅ ❌
- Is the POI visible S/D PA on m15 or above? ✅ ❌
The POI (D/S) should be visible on M15 or above
- Engulfed S2B/B2S
- Inside bar (LTF range)
- STB/BTS wicks
- Large Wick(s)
Select POI on HTF (m15 or >) Refine on LTF (not the other way ❌
- Is the POI a BTS/STB engulfed candle? ✅ ❌
- B2S → Close/Engulf the low of the previous candle
- It’s Irrelevant what happens above (Wicks it, closes above, massive wick etc..)
- The body of the sell candle must close below the entire previous candle body/wick
- S2B → Closes/Engulfs the high of the previous candle
- It’s Irrelevant what happens below (Wicks it, closes below, massive wick etc..)
- The body of the buy candle must close above the entire previous candle body/wick
- Did the POI break something to the left? (BOS, iBOS, S/D) ✅ ❌
If there are enough orders, the POI should easily break;
- Structure
- Demand/Supply
- Internal Structure (iBOS)
- Does the POI have valid interaction (or an extreme that breaks something?) ✅ ❌
The POI must interact with valid D/S showing a transaction/exchange of orders
or
The POI must be an extreme that breaks something
What is the logic behind looking for an “engulfed” S2B/B2S?
The candle should easily close below/above the previous one if there are enough orders.
What do you do when a B2S / S2B engulfs more than one candle?
Include multiple candles - use a larger range
What are the 5 POI Refinements criteria?
- Identify valid engulfed B2S/S2B POI ✅
- Identify LTF range → The time it took the candle to form ✅
- Map the Lowest to the Highest (B2S) / Highest to the Lowest (S2B) point within the LTF range ✅
- Identify a B2S/S2B engulfed candle within the range = Refined POI ✅
- IF price comes into our refined POI → Look for seconds entry ✅