Weekly commentary 12 Flashcards
What is AMD?
3 phases of price delivery:
Accumulation/Consolidation - creates sentiment in the market by enticing buyers and sellers into the market.
Manipulation - triggers buy/sell stops resting above/below the consolidation range.
Distribution/Expansion - The move that expands price towards a liquidity pool.
What is an Institutional order flow entry drill(IOFED)?
It’s a trading model that occurs when:
1. a candle sweeps the low of the previous candle
2. the new candle trades into a FVG that has a partial unbalanced range
3. The new candle rejects off the FVG.
This can be traded on any time frame.
What does an Institutional order flow entry drill achieve?
It delivers liquidity and rebalances areas of imbalance.
How should an Institutional order flow entry drill be traded?
Consider the bias on the higher timeframe.
Don’t enter immediately on the higher time frame.
You might be tempted to enter into a trade blindly. DONT! Wait for the lower time frame model to form, and then enter.
Drop to a lower time frame.
Wait for a market structure shift.
Enter when price retraces into a FVG.
Ride the trade from swing low to swing high.
How should AMD be traded?
Consider the bias on the higher timeframe.
Wait for manipulation to occur on a higher time frame. The manipulation should result in price trading into and reacting off a PD array, or price should be sweeping liquidity on a higher time frame, ideally 4h+.
You might be tempted to enter into a trade blindly. DONT! Wait for the lower time frame model to form, and then enter.
Drop to a lower time frame.
Wait for a short term low/high to form.
Wait for displacement to create a lower low or higher high.
Use the Fib to split the range. Ensure Fib is anchored to swing high and swing low.
Enter in the appropriate zone, just above/below the 50% mark.
If if moves into the OTE range, it’s a good opportunity for a 2nd entry. Ride the trade from swing low to swing high.
