POI-Selection Flashcards
How important is S/D?
Supply and demand is what moves the market. It’s what moves price and causes LQ, PA, POI’s, structure and everything we see.
What’s extra confluence for an extreme POI?
There’s extra strength in an extreme POI if it has mitigated something.
Why is a V-shaped recovery extra confluence in a trade?
A V-Shaped recovery is extra confluence that a particular POI will hold because it shows BFI involvement as they’re the only ones who are able to move the market so vigorously. It shows that the composite man has a lot of interest in that level and is likely to hold it.
What kind of zone are these
Top is engulfed B2S candle
Bottom is engulfed S2B candle
What kind of zones are these?
Top is supply B2S wicks
Bottom is demand S2B wicks
What kind of zones are these
Top is supply B2S wick
Bottom is demand S2B wick
Can you go down timeframes to validate a POI?
No, you can only go up time frames to validate a POI. You would do this to try to find a doji, engulfed candle, or to see if there is interaction with a previous range for a flip
Does the POI have to have inducement?
Yes, otherwise it is likely to be inducement.
However, we can assume that a corrective return produces enough inducement.
If there’s very corrective PA where a POI is hard to find, what is a possible solution?
- Go up and down timeframes, if nothing can be found, or for further assurance,
- Wait for the 1M to CHOCH and then see what it was reacting off of, then validate it as a POI and/or refined POI.
Important to note that this is still a confluence, all other aspects of the trade but be golden for this to work reliably.
Can a POI be mitigated before it breaks strucutre?
No. Also, it’s not a valid POI unless it breaks structure.
Can a potential POI be valid even if that candle specifically didn’t sweep LQ?
Yes, as long as the area swept LQ (The current leg of price, generally without a change of OF).
can you go below the 15M to find POI’s?
No, you can only go below the 15M to validate a POI.
If you see BTS/STB Wicks, a BTS/STB Wick, engulfed candles, or a inside bar range, on the 15M, then you know that there is a S/D level there, and you can look on the LTF to refine it or to get more info. Here’s an example:
What are the 7 steps in POI identification and validation?
- Is there visible SD PA?
- Is it visible on the 15M minimum?
- Does it break something? (iBOS, BOS, or valid SD)
- If it’s decisional, does it have interaction?
- Does it sweep LQ?
- Does the POI have inducement?
- Is it in PD of something relevant, (or after a BOS for retracement)
What are the best areas to look for POI’s?
We want to look for POI’s within the previous OF range to continue the trend (without CHOCH’ing) and we want to look at POI’s in the previous legs of price to take trades back into the OF range.
These are OF POI’s and Structural POI’s
