The following are the structural contextual patterns that define the trading plan. Fade trades should only be taken if they match a contextual pattern.
Fade Patterns
F1: Fade the Edge of a Distribution
The first fade pattern is playing the edge of a distribution or range. The same pattern is valid for a developing Daily Value Area Low/High or the edge of a small range formed over several minutes. The difference being the Developing value Area entries we would expect to see absorption. On micro ranges we may not and would have to consider other context for entry such as a correlated market.
With these trades we need to be aware of wiggle room, essentially we often shakeout week hands before going the expected direction.
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