Chapter 1 lesson 6 - Institutional Orderflow & Framing Higher Timeframe Bias. Blending chapter 1 concepts

Question 1

How does the fib help our trades?

Answer 1

It segment the market into premium and discount zones.
Premium is above the 50, and discount is below the 50.
You never want to buy at a premium, and you never want to sell at a discount.

You should always sell at a premium and buy at a discount.

Question 2

On which timeframes is the FIB useful?

Answer 2

Always use the fib to determine where you are in the external range, especially on the higher timeframes.

Question 3

How to get the best daily bias?

Answer 3

Always trade within a daily or a weekly discount or premium, nothing below it. This is how you get the best bias.

Question 4

What will help provide clear liquidity targets when a market structure shift happens?

Answer 4

Always consider the date ranges when a market structure shift happens as it will give you clear targets.

When the date range targets are happening, and you get into a discount, don’t expect price to always take out the last 1. This is because it’s in a discount, so it’s not favorable.

Question 5

Which range should you use the fib on?

Answer 5

Focus on the external range first, then use the internal range.

Question 6

Which PD arrays can be used to determine the daily bias?

Answer 6

1. Previous day high and low.
2. Previous weeks high and low.
3. Swing points
4. The next day model

Question 7

How can the Previous day high and low be used to determine the daily bias?

Answer 7

Previous day high and low are liquidity levels that can be used as a draw on liquidity, or to frame a reversal or continuation.

Question 8

What should you do if the daily bias is not clear?

Answer 8

If it’s not clear or easy to anticipate where price is most likely to drawl towards, then DO NOTHING. Wait for the next candle to print, then use that to determine the daily bias.

Question 9

Using the previous day high and low, under what conditions can we expect the continuation of a bullish trend?

Answer 9

1.If the the last candle formed is bullish, and price did not trade above the previous day’s high.

2. If the last candle traded and closed above the previous days high.

Question 10

Using the previous day high and low, under what conditions can we expect the continuation of a bearish trend?

Answer 10

1. If the the last candle formed is bearish, and it did not trade below the previous day’s low.
2. If the last candle traded and closed below the previous days low.

Question 11

Using the previous day high and low, under what conditions can we expect the reversal of a bullish trend?

Answer 11

1. If the the last candle formed traded above the previous day’s high, but did not close above the previous day’s high.

Question 12

Using the previous day high and low, under what conditions can we expect the reversal of a bearish trend?

Answer 12

1. If the the last candle formed traded below the previous day’s low, but did not close below the previous day’s low.

Question 13

How can the Previous weeks high and low be used to determine the daily bias?

Answer 13

Previous week high and low are liquidity levels that can be used as a draw on liquidity, or to frame a reversal or continuation.

Question 14

Using the previous week high and low, under what conditions can we expect the reversal of a bearish trend?

Answer 14

If price trades below the previous weeks low, but does not close below it.

Question 15

Using the previous week high and low, under what conditions can we expect the reversal of a bullish trend?

Answer 15

If price trades above the previous weeks high, but does not close above it.

Question 16

Using the previous week high and low, under what conditions can we expect the continuation of a bearish trend?

Answer 16

If price moves back into a premium, and reacts off a PD array like a FVG, we can anticipate price to drawl towards the sellside liquidity below the previous weeks low.

Question 17

Using the previous week high and low, under what conditions can we expect the continuation of a bullish trend?

Answer 17

If price moves back into a discount, and reacts off a PD array like a FVG, we can anticipate price to drawl towards the buyside liquidity above the previous weeks high.

Question 18

Using swing points, under what conditions can we anticipate the draw on liquidity?

Answer 18

If price bullish or bearish, we can anticipate price to trade towards the previous high or low at the swing point.

Question 19

Using swing points, under what conditions can we frame a reversal?

Answer 19

If price trades above or below a swing point, but does not close above or below the swing point, then we can anticipate price to reverse, or a change in the state of delivery.

Question 20

How is the next day model used to frame a bullish bias?

Answer 20

1. If price fails to displace below a swing low, the next candle can be anticipated to be bullish.
2. If price respects a bullish PD array, the next candle can be anticipated to be bullish.

Question 21

How is the next day model used to frame a bearish bias?

Answer 21

1. If price fails to displace above a swing high, the next candle can be anticipated to be bearish.
2. If price respects a bearish PD array, the next candle can be anticipated to be bearish .

Question 22

What’s the process of using bias to finding an entry.?

Answer 22

1. On the daily time frame, determine the bias.
2. On the hourly time frame, mark out the midnight opening price.
3. Wait for a stop hunt, or another PD array to form.
4. Drop to the 5 minute timeframe to look for a PD array to lines up with the hourly PD array.
5. Use the high/low of the day for your stop loss.
6. Use the previous day high/low for your TP.