2023 Mentorship Flashcards
How do you project targets?
- In Standard Deviations (FIB)
- You look for a confluence of standard deviations at key market reversal points.
- First target above/below a liquidity pool.
- Second target beyond the liquidity pool.
- Aiming at the standard deviation level beyond equal highs/lows.
What is a Opening Gap (RTH GAP)?
- Yesterdays Close to Equity Open are the boundaries.
- This range is most likely being traded into.
- Look for PD Arrays within the RTH GAP in ETH.
What is a PD Array?
- Volume Imbalance
- Order Block
- FVG/BPR
- Rejection Block
- NWOG
- NDOG
- Implied FVG
What defines a High Probability Setup?
CLEAR DIRECTION: DRAW ON LIQUIDITY
1. Liquidity Taken
2. Displacement
3. Structure Shift
4. Premium-Discount PD Array
5. Entries within Premium and 50% of Discount.
6. SMT
7. Market Symmetry
8. Time of Day
What is a High Resistance Liquidity Run?
- Short-term stops will be raided more likely.
- Dollar and Index Futures move into the same direction.
- Index Futures are dislodged.
How do you trade High Resistance Liquidity Runs?
- You wait for a short-term swing to be taken out.
- Wait for a Breaker or MB.
- Entry: PD Array
What defines a NDOG (New Day Opening Gap)?
How many NDOGs do we Look-Back?
- Time: 04:59pm NY time - 06:00pm NY Time (16:59 - 18:00)
- Look-Back: 2 weeks, as much as 10 NDOGS
- Real Dynamic Support and Resistance.
- Price has to offer sell-side and buy-side within that GAP.
- We want to see a significant separation - GAP - not like 1-3 ticks.
- At each new trading week, discard the previous weeks NDOG and begin with this weeks first NDOG, extend it out.
What are Bullish & Bearish Breakers ?
Price has to take Liquidity on Both sides (like CHoCH)*
1. They define a structure shift.
2. Bullish Breaker: Highest Up-closed candle before the drop down, taking out SSL.
3. Bearish Breaker: Lowest Down-Closed candle before the rally up, taking out BSL.
What defines a NWOG GAP?
Friday’s Close - Monday NY AM Open.
What defines a NWOG (New Week Opening Gap)?
- Time: Fridays Closing Price 04:59 pm - Sunday’s Opening Price 06:00 pm.
- NWOG is a real GAP. When the market moves away from that GAP, it refers back to that in the future.
How does price behave around a NWOG Actual?
- Extend the NWOG and CE through the entirety of the week.
- It acts like real support-resistance.
- This gap will act like a magnet and Price has to offer buy-side and sell side within that NWOG.
- Smart Money refers to NWOG’s for buying and selling.
NWOG: Which levels are sensitive?
- The midpoint level is highly sensitive.
- and Quarters.
NWOG: How many weeks do we look back?
- Use that same opening range for every week within the same month. The algo will refer back to it.
- Look-back: we go back as much as 5 weeks or 60 days.
How do you define a FVG?
It’s the empty space between 3 candles.
What are the most important price levels in a bullish FVG?
- High,
- Upper Quarter (25),
- Midpoint (CE).
What are the most important price levels in a bearish FVG?
- Low
- Midpoint (CE)
- Quarter
How do you define an Implied FVG?
- A Displacement Candle that is…
- Overlapped by overlapping wicks.
- CE of either wicks reveal the implied FVG.
How many PD Arrays need to fail to classify as a failure and possible reversal?
3 PD Arrays need to fail.
What are 5 handles in SP500?
5 handles means a change of 5 points in the price quote. For example, if SP500 goes from 4000.42 to 4005.42, then it has moved up by 5 handles.
What happens if a bullish PD Array breaks?
- When a bullish PD Array breaks, it becomes an inversion PD Array. Think like support becomes resistance.
- Think like support becomes resistance. It’s a change in the state of delivery.
How does the Algorithm interpret Wicks?
- Wicks are viewed by the algorithm as a gap. That’s why it’s going to reprice back to it.
What is likely to happen when price runs a liquidity pool, fill a FVG and does a Breaker?
- Price will test the breaker and continue the move higher/lower.
- Price won’t return to fill a FVG.
When can you use the IOFED entry?
- Anytime to make sure to be in the trade.
- To pyramid.
There are only 2 reasons why price moves up or down. What are they?
- To run liquidity. (Short - Term Swings).
- To fill a PD Array, reprice into it and balances the FVG.
- Time Delivery: It’s TIME Bases, MACROS