how I use RSI + my pattern as additional confirmation

#Gold

This is how I use RSI + my pattern as additional confirmation.

I don’t really use it anymore, but when I started, it made entries much easier to understand, so feel free to use it as a reference 😊

RSI settings: Period 14, band 25–75

Add an SMA (moving average) inside the RSI.

For 5-minute scalping, set the SMA to 9.

By combining Fibonacci × RSI (SMA):

Fibonacci shows possible reversal price levels,

and RSI shows the strength of the momentum,

so you can double-check your entry.

On the 5-minute chart, I often use this during corrections after a drop (or rise),

aiming for entries around the Fibo 38.2–61.8% retracement.

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5-minute chart entry flow

① First, during the prior drop, RSI breaks below 25

→ Sign that selling momentum has been exhausted.

② Then the price rises (wave 1)

→ Price comes back to form a pullback.

③ During the pullback, RSI stays around 45–55

→ A sign that momentum is making a healthy adjustment.

④ Here, SMA9 crosses RSI from below

→ Reversal timing within the Fibonacci zone.

As long as SMA9 stays between 45–55 inside the RSI after the cross,

this becomes a “scalping zone” where you can catch multiple rebounds.

Since gold can easily move 100 pips in one scalp,

this is definitely a zone worth remembering.

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15-minute chart: Using RSI to catch the start of a reversal

The points are simple:

① Price trendline and RSI line move in opposite directions (divergence)

→ Evidence that momentum is being depleted.

② After that, the first wave clearly rises with stronger angle

→ Sign of a real reversal beginning.

Confirm these two, then aim for entries on Fibonacci pullbacks.

By looking not only at divergence but also the strength (angle) of the rebound afterwards,

you can avoid misjudging direction and catch pullbacks after the reversal.

Since this approach targets reversals caused by momentum exhaustion,

always use it when price is in Elliott Wave 5 on the higher timeframe.

If divergence also appears from waves 3 to 5, even better.

A reversal from a 5th-wave exhaustion can produce a 1000-pip move on gold.

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This time I summarized the basics of combining RSI and Fibonacci.

Next… I’m planning to explain one of my practical indicators 😏

If you want to know, give it a like and RT.

I’m excited to see how far this one spreads, because if you wait for these setups alone, the win-rate becomes 100%. 😏

8:12 AM – 9:12 AM Liquidity Sweep

⭐ How I Would Trade This Strategy (If I Were Using It)

I trade it in five phases:

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1️⃣ PREPARATION — BEFORE THE SESSION

My checklist:

Choose ONE pair (e.g., EURUSD or NAS100).

Stick to the exact same session every day.

Confirm no major news within the next hour.

Why:

Consistency reduces randomness. This strategy depends on predictable session liquidity behavior, so you can’t jump around pairs or sessions randomly.

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2️⃣ RANGE BUILD — 8:12 AM to 9:12 AM NY

I would mark:

The highest high of the range

The lowest low of the range

And I wait. No trades yet.

Psychology:

This box is where most impatient traders make mistakes.

I’m not trying to predict. I'm waiting for the market to expose where everyone is hiding their stop losses.

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3️⃣ LIQUIDITY SWEEP — THE PATTERN I WANT TO SEE

Once 9:12 passes, I do NOT trade until price:

✔ Takes out the HIGH

or

✔ Takes out the LOW

A wick breaking the level is enough.

What I’m thinking:

> “Good. Retail stops have been taken.

Fine. Institutions now have the liquidity they wanted.

Now I wait for real direction.”

If price does NOT sweep either side, I skip the day.

Why:

Missing liquidity = low probability = low win rate.

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4️⃣ CISD — MY CONFIRMATION TRIGGER (THE MOST IMPORTANT PART)

I require:

✔ 3 candles in the direction OF THE SWEEP

(Example: price sweeps buyside → I want to see 3 bullish candles)

Then:

✔ A break of those 3 candles in the opposite direction

This is the Change in State of Delivery.

What I’m thinking:

Those 3 same-colored candles show fake momentum and trap retail traders.

The BOS against that move shows real intention.

The market is done with the sweep and now delivering price to the opposite side.

This CISD is my ENTRY CONFIRMATION.

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5️⃣ THE ENTRY — THE PART MOST PEOPLE RUSH

After CISD:

✔ I enter on the confirmation candle

OR

✔ I wait for a retest (my preferred entry)

Stop loss:

Placed safely above (for sells) or below (for buys) the sweep wick.

Take profit:

I aim for the opposite side of the 8:12–9:12 range.

What I’m thinking:

> “I’m not here for home runs.

I only want the clean delivery from one side of liquidity to the other.”

This keeps the system simple and repeatable.

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⭐ My Rules for NOT Trading

These save my account more than entries do:

❌ If sweep is too large (huge imbalance push) → NO TRADE

❌ If CISD happens inside the range → NO TRADE

❌ If news is coming → NO TRADE

❌ If higher timeframe trend is extremely strong against my idea → NO TRADE

❌ If the candle structure is messy → NO TRADE

My philosophy:

> “Skipping bad trades is more profitable than taking good trades.”

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⭐ My Psychology Behind the Strategy

Here’s how I personally interpret the psychology:

🔺 When price sweeps liquidity

Retail = losing money

Institutions = filling orders

Amateurs feel FOMO

Professionals feel patience

🔺 When 3 same-colour candles form

Retail = thinks trend is beginning

Institutions = letting retail enter the trap

Amateurs add to losing positions

Professionals prepare for the reversal

🔺 When CISD breaks the structure

Retail = confused

Institutions = start the real move

Amateurs freeze

Professionals strike

🔺 When price delivers to other side of range

Retail = flips bias too late

Institutions = taking profits

Amateurs blow accounts

Professionals log their win and wait for next day

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⭐ If I traded it daily, my mindset is simple:

NO sweep = NO trade

NO CISD = NO trade

Stop goes beyond the sweep extreme

Target the opposite range level

Accept the losses — the setup depends on statistics, not feelings

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✅ 8:12 AM – 9:12 AM Liquidity Sweep + CISD Trading Checklist

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🕘 1. PRE-SESSION CHECK

✔ Market Conditions

[ ] No high-impact news near or during 8:12–9:12 NY

[ ] Spread is normal

[ ] Volatility is stable (not extremely low)

✔ Charts Ready

[ ] Correct timezone (NY)

[ ] Only trading 1–2 pairs max

[ ] Higher timeframe trend marked (H1 + H4)

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📦 2. DRAW THE RANGE (8:12 AM – 9:12 AM NY)

[ ] Mark highest high of the range

[ ] Mark lowest low of the range

[ ] Label:

BSL (Buyside Liquidity)

SSL (Sellside Liquidity)

[ ] Wait patiently — NO TRADES INSIDE THE RANGE

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💧 3. WAIT FOR THE LIQUIDITY SWEEP

One of these must happen:

[ ] Price sweeps ABOVE the range high (BSL taken) → Look for SELL

[ ] Price sweeps BELOW the range low (SSL taken) → Look for BUY

Sweep Quality Check

[ ] Sweep must be a wick, not a massive displacement

[ ] Sweep must be clear and obvious

[ ] No entry yet — wait for confirmation

If no sweep occurs → SKIP THE DAY

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📉 4. CISD CONFIRMATION (MOST IMPORTANT PART)

After the sweep, check for:

✔ Candle Sequence

[ ] 3 consecutive candles in the direction of the sweep

If BSL swept → 3 bullish

If SSL swept → 3 bearish

✔ Structural Shift (Change of State of Delivery)

[ ] Price breaks in the opposite direction of the 3 candles

This is the CISD (your confirmation signal)

If NO CISD → NO TRADE

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🎯 5. ENTRY

Only after CISD…

✔ Entry Trigger

Choose ONE:

[ ] Enter on CISD breakout candle

[ ] Enter on retest of CISD or the sweep area (preferred)

✔ Stop Loss Placement

[ ] Stop loss ABOVE the sweep wick (for sells)

[ ] Stop loss BELOW the sweep wick (for buys)

✔ Take Profit

[ ] First target = opposite side of the 8:12–9:12 range

[ ] Optional extended targets if structure allows

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🛡 6. RISK MANAGEMENT

[ ] Risk per trade = 0.5%–1%

[ ] Never move SL unless trade is secured

[ ] Accept losses quickly — don’t revenge trade

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🧠 7. POST-TRADE LOG

After trade closes:

[ ] Did sweep occur?

[ ] Was CISD clean?

[ ] Did higher timeframe support the idea?

[ ] Did I follow all rules?

[ ] Screenshot saved for journal

[ ] Lessons noted?

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⭐ FINAL RULES (NEVER BREAK THESE)

❌ No sweep → No trade

❌ No CISD → No trade

❌ No confirmation → No entry

❌ No chasing entries

❌ No trading inside the range

❌ No trading during major news

❌ No overtrading — one good setup per day is enough

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The RSI + VWAP Day Trading Strategy: A Detailed Guide

This strategy is powerful because it merges two complementary types of indicators: a momentum oscillator (RSI) and a volume-weighted trend identifier (VWAP). This combination allows you to gauge both the direction and strength of institutional money flow and the momentum behind the price move.

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Part 1: Understanding the Core Components

1. The Volume-Weighted Average Price (VWAP)

· What it is: VWAP is a trading benchmark that shows the average price a security has traded at throughout the day, based on both price and volume. It is the "true average price" for the session.

· Why it matters for day traders: Institutional algorithms often use VWAP as a reference point to execute large orders without significantly impacting the market. Their goal is to get a price better than the VWAP.

· Interpretation:

  · Price ABOVE VWAP: Suggests bullish sentiment. Buyers (institutions) are willing to pay a premium to accumulate the asset.

  · Price BELOW VWAP: Suggests bearish sentiment. Sellers are willing to accept a discount to distribute the asset.

  · VWAP as Support/Resistance: The VWAP line often acts as a dynamic support in uptrends and resistance in downtrends.

2. The Relative Strength Index (RSI)

· What it is: RSI is a momentum oscillator that measures the speed and change of price movements. It fluctuates between 0 and 100.

· Standard Settings: 14-period RSI is the default.

· Interpretation in this Strategy (Non-Standard):

  · We do not use the traditional 70/30 overbought/oversold levels for entry signals.

  · Instead, we use RSI to confirm the strength of the trend.

  · RSI > 50-60: Indicates bullish momentum. We want to see this for long entries.

  · RSI < 40-50: Indicates bearish momentum. We want to see this for short entries.

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Part 2: The Long Trade (Buy) Setup - Step by Step

Concept: Catch the move when institutions begin buying, pushing the price from below the "fair value" (VWAP) to above it, with strong momentum.

1. The Precondition & Setup:

   · The price must be trading BELOW the VWAP line.

   · The RSI should ideally be below 60, showing it's not yet overextended to the upside.

2. The Entry Signal (All conditions must be met):

   · Price Action: The price candle decisively closes above the VWAP line. A mere wick above is not enough. Look for a full-bodied candle.

   · Momentum Confirmation (RSI): The RSI must cross above the 60 level (or at the very least, above 50) simultaneously with the price break.

   · Volume Confirmation (Crucial Filter): There should be a noticeable increase in trading volume on the breakout candle. This confirms institutional participation.

3. Stop Loss Placement:

   · Primary Method: Place the stop loss just below the most recent significant swing low that formed before the breakout.

   · Alternative Method: Place the stop loss a few ticks/pips below the VWAP line itself. The idea is that if the price falls back below VWAP, the breakout has failed.

4. Exit Strategy (Taking Profit):

   · The Concept: Exit as the move away from VWAP becomes "excessive" and momentum starts to wane.

   · Price-Based Exit: When the price has extended significantly above VWAP, consider taking partial profits. You can also use a trailing stop.

   · Momentum-Based Exit (Primary): When the RSI moves into the 70-80 range, it signals the move is overextended. This is your signal to exit or tighten your stop loss. The initial momentum is fading.

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Part 3: The Short Trade (Sell) Setup - Step by Step

Concept: Catch the move when institutions begin selling, pushing the price from above "fair value" (VWAP) to below it, with strong negative momentum.

1. The Precondition & Setup:

   · The price must be trading ABOVE the VWAP line.

   · The RSI should ideally be above 40, showing it's not yet overextended to the downside.

2. The Entry Signal (All conditions must be met):

   · Price Action: The price candle decisively closes below the VWAP line.

   · Momentum Confirmation (RSI): The RSI must cross below the 40 level (or at the very least, below 50) simultaneously with the price break.

   · Volume Confirmation: There should be a noticeable increase in volume on the breakdown candle.

3. Stop Loss Placement:

   · Primary Method: Place the stop loss just above the most recent significant swing high that formed before the breakdown.

   · Alternative Method: Place the stop loss a few ticks/pips above the VWAP line.

4. Exit Strategy (Taking Profit):

   · Price-Based Exit: When the price has extended significantly below VWAP.

   · Momentum-Based Exit (Primary): When the RSI moves into the 20-30 range, it signals the selling is overextended. This is your signal to exit the short position.

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Part 4: Advanced Tips & Risk Management

· Timeframe: This strategy works best on 1-minute to 15-minute charts for day trading. The 5-minute chart is often a sweet spot.

· Market Context is King: This strategy is most effective when the overall market trend aligns with your trade direction. A long setup is stronger during a general market uptrend.

· Avoid "Noise" Periods: Do not trade this strategy during the first 15 minutes of the market open or during major news events, as the VWAP is still stabilizing and volatility is extreme.

· False Breakouts: A breakout that fails and immediately reverses is a strong signal in the opposite direction. If you get stopped out of a long trade as price falls back below VWAP, it can be a signal to go short (if other conditions align).

· Position Sizing: Never risk more than 1-2% of your trading capital on a single trade.

Summary: Why This Strategy Works

By combining VWAP (the institutional "fair price" gauge) with RSI (the momentum confirmation tool), you filter out low-probability trades. You are no longer guessing; you are trading with the flow of volume and momentum, which is the domain of professional and institutional traders. This provides a structured framework for high-probability entries, disciplined risk management, and logical exits.

Volume-Profile + W-pattern strategy

Great — I’ll expand into a comprehensive, detailed playbook you can use to learn, test, and trade the Volume-Profile + W-pattern strategy exactly like the photo. I’ll cover concepts, plotting settings, step-by-step entry/exit rules, risk & position sizing (with worked math), how to detect/handle false signals, backtesting checklist, and trade management.

1) Core concepts — what each element really means

Volume Profile (Fixed Range) — horizontal histogram showing how much volume traded at each price in the selected range. Longer bars = more volume at that price (higher interest / fair value).

Point of Control (POC) — the single price level with the highest traded volume in the profile. Acts as a magnet (fair-value) and strong S/R.

High Volume Node (HVN) — cluster of prices with high volume. Price tends to consolidate near HVNs.

Low Volume Node (LVN) — areas with little volume (gaps). Price moves quickly through LVNs (areas of rejection or low interest).

S&R Range (Volume Range / Value Area) — the band (often the value area) containing the majority of volume (commonly 70% value area). Acts as hidden support/resistance.

W-pattern (Double Bottom) — two lows separated by a middle high. Break above the middle high = confirmation of buyers.

2) How to plot the Volume Profile (TradingView / general settings)

TradingView (Fixed Range Volume Profile)

1. Open chart → Indicators → search “Fixed Range Volume Profile” (or “Visible Range” / “Session Volume” depending on preference).

2. Click start point (often the swing low before consolidation) and end point (swing high after move or end of consolidation). This creates the horizontal histogram on the left.

3. Key settings to review:

Value Area %: commonly 70% (some use 68% / 80%). 70% is standard.

Row Size: controls price bin size. Smaller row = more detail; larger row = smoother HVNs. Use default first, then adjust by timeframe (e.g., larger row on daily, smaller on 5-15m).

Profile Type: use Fixed Range for the pictured method. Visible Range is automatic; fixed gives you control.

Show POC: ON (label it).

Show Value Area: ON (shaded region). Other platforms: Look for “Volume by Price”, “Volume Profile”, or “Market Profile” features — same logic applies.

3) Detailed step-by-step trading rules (entry → exit)

Use this as your rulebook.

A. Setup / Market selection

Trade liquid assets (major forex pairs, large-cap equities, futures, indices). Avoid very low volume tickers.

Preferred timeframes: 4h / Daily for swing trades, 1h / 15m for intraday. The profile should be plotted for a meaningful consolidation range on the timeframe you trade.

B. Plot the Profile

1. Identify a consolidation / accumulation area (sideways candles or congestion).

2. Draw Fixed Range VP covering that consolidation (from the swing low to the subsequent swing high or across the consolidation).

C. Wait for price to re-visit the Volume Range

You want price to drop into the value area / high volume cluster — this indicates price is testing where the market previously negotiated value.

D. Require a W-pattern inside the range

W formation: first low, bounce (middle high), second low near the first, then break above the middle high.

Both lows should be within or very near the value area / S&R zone (not far outside).

E. Entry

Enter Long when price closes above the middle high of the W on your trading timeframe (confirmation candle close).

Optional: require volume increase on the breakout candle for extra confirmation.

F. Stoploss

Place stoploss below the lower low of the W (the second bottom). This is logical — violates the pattern if price closes below it.

G. Targets / Trade management

Target 1: nearest recent swing high (conservative).

Target 2: POC or top of high volume node / next HVN (ambitious).

Target 3: use trailing stop (e.g., trail below higher lows or use ATR multiple) to ride a longer trend.

Risk to Reward: aim for minimum 1:2 R:R, ideally 1:2.5–1:3.

4) How to interpret the profile visually (what to look for)

Profile skew: If profile is skewed up (more volume at upper prices), bias long if price above POC; skewed down, be cautious.

POC location: price below POC often gets pulled to it; price above POC may use POC as support on pullbacks.

HVN vs LVN: Quick moves through LVNs — use these as breakout corridors. HVN = congestion → expect chop.

Multiple profiles: When newer profiles form overlapping old ones, look for confluence of POCs and HVNs — stronger S/R.

5) Handling false signals — practical filters

False breakouts are common. Use one or more filters:

Volume Filter: require higher-than-average volume on breakout candle.

Higher timeframe alignment: e.g., if trading 1h, make sure daily structure is not strongly bearish.

Trend bias: prefer entries that align with a larger-timeframe trend (if daily is bullish, 1h-long setups have higher odds).

Time of day: for intraday, avoid late thin liquidity periods.

Multiple confirmation: price reclaiming the middle high by a candle close + follow-through candle.

6) Position sizing & risk examples (worked step-by-step arithmetic)

Example A — stocks (clear numbers)

Account size = $10,000.

Risk per trade = 1% of account.

Step 1: compute risk amount:

10,000 × 0.01 = 100.

(ten thousand times point zero one equals one hundred)

Suppose entry price = $50.00, stoploss = $48.00 → stop distance = $2.00 per share.

Step 2: determine position size in shares = risk amount ÷ stop distance.

100 ÷ 2 = 50 shares.

(one hundred divided by two equals fifty)

So buy 50 shares. Maximum loss if stop hit = 50 × $2 = $100.

Example B — reward:risk calculation

Entry 50, stop 48 (risk = 2), target 56 (reward = 6).

Compute R:R: reward ÷ risk = 6 ÷ 2 = 3 → 3:1 R:R.

(six divided by two equals three)

If you risk $100, expected gross profit at target = $100 × 3 = $300.

7) Backtesting & metrics to measure (do this before going live)

For each trade record:

Date/time, instrument, timeframe

Profile start/end dates & profile POC level

Entry price, stoploss, target(s)

Position size, % of account risked

Outcome (win/loss), pips/$ won or lost

Volume at breakout candle (compare to average)

Trade duration (hours/days)

Notes: market condition, news, reason for entry

Important metrics to compute after many trades:

Win rate (% wins)

Average win / average loss

Profit factor = total wins / total losses

Expectancy per trade = (win% × avg win) − (loss% × avg loss)

Max drawdown, sharpe, number of consecutive losses.

8) Common pitfalls and how to avoid them

Using profile on too short a time range → produces noise. Use meaningful consolidation.

Trading low volume assets → many false moves.

Not controlling risk → even good setups lose sometimes. Use fixed % risk.

Too many discretionary changes → stick to rules.

Ignoring spread/commissions for small stops (they eat the edge).

9) Advanced trade management techniques

Scaling in: enter partial size on first breakout, add on confirmation (risk increases — measure carefully).

Pyramiding: add more size as price confirms and moves in your favor, but always recalc risk so total risk stays within limit.

Trailing stop: move stop to breakeven after 1R, then trail below swing lows or use ATR multiple (e.g., 1.5× ATR).

10) Example annotated trade (text walk-through)

1. Plot VP over a 10-day consolidation — POC at 123.50, value area 120.00–126.00.

2. Price drops to 121.00 (inside value area) → forms first low 121.00 → bounce to 124.50 (middle high).

3. Pullback makes second low at 121.50 (near first low) — now W is forming.

4. Price closes above 124.50 — entry at 124.80 on close.

5. Stop placed below second low at 121.40 (so stop distance 3.40).

6. Target set at next swing high 131.00 (reward 6.20) → R:R ≈ 6.20 / 3.40 ≈ 1.82:1.

7. Manage trade: move stop to breakeven after price reaches 1R; trail as trend continues.

11) Backtest plan (simple 30-trade test)

Choose 1 instrument and timeframe.

Define profile selection rule (e.g., plot profile across every major consolidation lasting ≥5 candles).

Apply the exact rules above (entry=close above middle high, stop=second low).

Record 30 consecutive setup trades.

Compute win rate, avg win, avg loss, expectancy.

If expectancy positive and drawdown acceptable, forward test on demo.

12) Automation / alerts / Pine Script ideas

Plot the Fixed Range profile (manual on TradingView), then add a Pine Script that:

Detects double bottom (two lows within X% of each other),

Detects break above middle high by candle close,

Optionally checks session volume > moving average volume,

Sends alert when all conditions true. If you want, I can build a starter Pine Script that flags potential W-patterns and breakout closes (note: Volume Profile binning must be manual; script can use bar volume filters and price checks).

13) Practical rules & checklist (copy for your trading screen)

1. Instrument: ________

2. Timeframe: ________

3. Plot VP: start _______ end _______

4. POC: _______  Value Area (70%): –

5. Price visited value area? Y/N

6. W-pattern formed inside range? Y/N

7. Confirm breakout close above middle high? Y/N

8. Volume on breakout above avg? Y/N (optional)

9. Entry price: _______

10. Stoploss: _______

11. Risk $ / %: _______

12. Position size: _______ shares / lots

13. Targets: T1 _______ T2 _______

14. Notes: market bias, news, error margin

14) Final practical tips

Paper trade this for 50–100 setups before risking real money.

Keep a disciplined log and review losing trades to find recurring errors.

Combine Volume Profile with structure (higher timeframe trend) for better edge.

Don’t chase: wait for the full W confirmation inside the value area.

Economic Calendar Overview👀 (Mon 17 Nov - Fri 21 Nov)

Economic Calendar Overview👀 (Mon 17 Nov - Fri 21 Nov)

Summary: “Golden Cross Carries Some Little-Known Magic” (Feb. 9, 2023)

The article explains that while a Golden Cross (50-day SMA crossing above the 200-day SMA) is usually seen as bullish—and a Death Cross as bearish—the real meaning depends on where price is located at the moment of the crossover. This is based on Tom McClellan’s idea of rainbow convergence.

Two Types of Crossings

1. Type 1 Crossing

Price is far away from the moving averages at the moment they cross.

The crossing usually marks a reversal point, at least temporarily.

Example: March 2022 Death Cross

– Instead of falling immediately, price reversed upward ~11% before eventually turning down again.

2. Type 2 Crossing

Price retraces back toward the point where the moving averages cross.

After retracing to that level, the prior trend usually resumes.

Acts more like a continuation signal.

Key Insight

The bullish or bearish meaning of a Golden or Death Cross depends not on the cross itself, but on price behavior relative to the crossing point.

Current Example (Feb. 2, 2023)

The Golden Cross occurred exactly at a short-term top.

Price reversed downward afterward → behaving like a Type 1 event, rather than a bullish continuation.

Broader Point

This principle works with other moving-average pairs as well. Before assuming a Golden/Death Cross is bullish or bearish, check price distance and position at the time of the crossover.

One Setup for Life

How the chart looks using first/second test logic

1. Define the immediate trend (pink)

Left-hand action shows an upward swing → classify the short-term trend as up.

Draw the pink swings (swing high → pullback → swing high). That immediately tells you what “satisfying the trend” means (make higher highs / higher lows).

2. Mark significant horizontal levels (yellow)

There are clear levels where price reacted multiple times. Those are your level(s) to watch — they are where liquidity and orders accumulate.

On your chart the prominent yellow band is the level that gets tested twice.

3. Observe the first test

Price approaches the yellow level and fails at the first test (close/failure to break, rejection candle, or quick rejection after probing the level).

That failure clears orders (people get stopped out or tested) and gives the level information: sellers defended it / buyers were weak.

4. Observe the second test

Price returns to the same yellow level a second time.

If momentum is present on the second test (bigger rejection candle in the opposite direction, larger impulse candle after the test, quick follow-through), price will run through the level and make a new high/low, thus satisfying the trend.

On the chart: the second interaction with the level produces the decisive move (new high turned into rejection then a decisive drop to satisfy the new lower-trend).

5. Result

Trend is satisfied by making the new structure (new high or new low depending on whether momentum follows the second test).

You don’t need a “stop hunt” story — the price simply tested, failed, cleared liquidity, and the market moved to satisfy the trend.

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Simple practical checklist (apply to any chart)

1. Identify the immediate trend (draw 3-5 pink swings).

2. Mark repeated reaction levels (yellow horizontal lines where price reacted 2+ times).

3. Label the first test: did price probe and fail? (look for wick + rejection or failed close).

4. Watch the second test: look for evidence of momentum — bigger candle body, follow-through, volume spike (if you use volume).

5. If second test shows momentum → direction likely continues (enter on confirmation: e.g., after a follow-through candle closes on the satisfying side).

6. If second test fails → structural change (re-consider trend; that level held twice).

7. Manage risk: stop just beyond the test area; target at the next obvious swing or a 1:2+ reward ratio.

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Practical signals that show a true 1st vs 2nd test

1st test failure signs: long wick into level, close back away, small follow-through.

2nd test confirmation signs: impulsive candle in the expected direction, series of same-direction candles, momentum increase (size/slope), quick break of nearby structure (higher high / lower low).

If price simply chops on 2nd test with no follow through — it’s not confirmed.

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Final thought — why this is better for many traders

It’s simple, repeatable, and observational (no need to assume “stop hunts” or hidden intentions).

You focus on structure and behavior, not narratives.

Works on all timeframes because it’s pattern + momentum based.

Economic Calendar Overview👀 (Mon 10 Nov - Fri 14 Nov)

Economic Calendar Overview👀 (Mon 10 Nov - Fri 14 Nov)

Institutional Advance Price Action

Open this Thread 🧵 to learn institutional advance price action patterns in The Stock market.

Advanced Price action pattern list

QM shadow Bullish and bearish Patterns. 

Identify Higher High and Lower Low patterns.

Continuation bullish and bearish QM Pattern.

Top Institutional price action pattern.

One of the famous price action V twin. It helps in identifying supply and demand zone.

Flag B unique price action pattern.

Identify HH and LL and then flag b pattern

2R / 2S Fakeout patterns in the stock market.

Bullish and Bearish pattern with Supply and demand zone.

Fakeout V1 Default pattern.

Identify R1, R2 and S1, S2 first.

My favourite Fakeout v3 diamond pattern in the india stock market.

Double SSR pattern in price action.

Find multiple support and resistance

3 Drive pattern in the stock market trading.

Identify resistance and support easily with this pattern

Can Can pattern in the stock market.

Flag pattern combination

ICT concepts changed my trading for best

ICT concepts changed my trading for best. 

By KingDubie 

Leaving support/resistance behind in 2021 almost immediately put me on the right path. 

If you crave precision like me and want a faster, easier way to learn & trade ICT 

This thread breaks it down step by step

Walk with me 🧵

1/22

ICT is still support and resistance 

BUT is a more precise version of it.

Everything about trading is leaning to what feels easier and more trust worthy to you.

As a person ... I always liked sophistication and precision 

AND I never got that with support and resistance

Trying to figure out which zone to trade from in the midst of many other zones was like a torment to my psyche

When I started learning ICT , I was so happy that I can finally differentiate between certain zones because they looked distinct

Thanks to the Inner circle trader.

2/22

DISCLAIMER :

Now going straight to the point , every detail about ICT is on the official youtube channel of ICT himself.

BUT if you want a summarized understanding of ICT this thread will help you and also give you direction on things to focus on.

3/22

Just like support and resistance or any other concepts , ICT is a concept not a strategy

ICT concepts is a full deep library that explains market behavior from a unique perspective and this was master minded by ICT himself 

Many things explained in this concepts has their equivalent in support and resistance trading

These are simple example below

4/22

PD arrays ---------------------- S/R ZONES

Liquidity sweep --------- Rejection wicks on S/R zones

Breaker mitigation ------Break and retest on S/R zones

OTE ---------- Fibonacci retracement to golden levels

Killzones -----------------Overlap Session open 

5/22

There are many others .. but thats not the purpose of this thread alone ...

The primary purpose of this thread is to teach you a simple ICT Based strategy and why its more precise.

Now ,the first thing to learn when trying to understand ICT are ICT PD arrays.

6/22

This is same as POIs as some people call it AND equivalent to S/R zones in S/R trading.

The most popular of them are ;

FVG ; FAIR VALUE GAPS

OB ; ORDER BLOCKS

RB ; REJECTION BLOCKS

BB ; BREAKER BLOCKS

IFVG ; INVERSION FAIR VALUE GAPS

LQT ; LIQUIDITY

7/22

Everything listed above are all classified as IRL ( Internal range liquidity) EXCEPT LQT

LQT listed here can exist as ERL (External range liquidity) or IRL 

Dont get confused yet , I will break it down further

8/22

Take a look at this image

Took me a while to understand this , thats why I broke it down so you can understand faster

9/22

Moving forward, I will only focus on 3 PD arrays to make it easier to understand , also as a beginner ICT trader you should stick to 2 or 3 PD arrays 

The images below are arranged in this order 

FRAME 1 ; LQT

FRAME 2; FVG

FRAME 3; RB

10/22

How ever each of these PD arrays exist in pairs

1. LQT = BSL & SSL

2. FVG = SIBI & BISI

3.RB = +RB & -RB

LIQUIDITY;

This PD array exist in pairs

Just like support and resistance , support levels initiate buys while resistance levels serves as a roof and initiate a sell off.

This is same for LIQUIDITY , BSL is acronym for buyside liquidity it initiate sells

While SSL ( Sellside liquidity) initiate Buys

In S/R when price rejects a zone we see that as a reaction

In LQT we expect price to sweep the SSL (which is typically a low as you see in the image) to expect a buy move

In ICT theory this is called stop hunt , as ICT believes that market makers intentionally do this to run the stoplosses of most retail traders who keep sl directly under or above core S/R zones which are now called LQT pools in ICT

Same as BSL , we expect price to sweep a certain high before we expect a sell off 

observe image below

11/22

2. FVGs;

This PD array also exists in pairs too

SIBI & BISI

SIBI is [Sellside imbalance buyside inefficiency] 

Which I also call bearish FVG

The long name just describes the nature of what it entails .. 

FVGs are gaps and a gap on a bearish candle shows extreme sell orders in the market around that time without a corresponding or equal buy orders to balance price up at that period of time ... hence you hear that tag "Buyside inefficiency"

On the other hand , BISI is [Buyside imbalance Sellside inefficiency] and explanation is just inverse of what i explained above

So easy way to see it is SIBI = Bearish FVG , while BISI = Bullish FVG

Bearish FVGs initiate sell moves , while bullish FVGs initiates buy moves

12/22

BISI on left SIBI of Right

3.REJECTION BLOCKS

This is literally an isolated candle wick found around origin points of a price delivery swing

You find them at extreme high or low points. 

Check the Images below.

This also exist in pairs , we got bullish and bearish RB 

And Bullish RB initiate Buy moves , while bearish RB initiate sell moves

13/22

Now you have seen and understood the 3 PD arrays , how do you make use of them in analysis ?

First .. for every working technical strategy , there has to be strict criteria for these

- When to be on chart

- Deciphering market bias

-Choosing Areas of value to trade from ( in ICT we call area of value PD arrays)

- Confirming Valid Pd arrays to trade with lower timeframes

WHEN TO BE ON CHART is a very underrated skill by many struggling traders and ICT concepts teaches what we call KILLZONE.

14/22

Killzone is just a unique version of normal trading sessions

Its strictly selected during session overlaps

ASIAN - LONDON OVERLAP = LONDON KILLZONE

LONDON - NY OVERLAP = NY KILLZONE

NY - ASIAN OVERLAP = ASIAN KILLZONE

However the time is often 4 hours interval with london killzone being an exception with just3 hours interval

The Killzone concept is literally 1hr time before the actual session overlap , and 3hours into the overlap ( except london which is 2hours into the overlap)

London killzone = 2am EST - 5am EST

NY AM KILLZONE = 7am EST - 11am EST 

NY PM KILLZONE = 12pm EST – 4pm EST

Asian Killzone = 8am EST - 12am EST

ICT recommends that you stick with one killzone

15/22

UNDERSTANDING MARKET BIAS 

I remember a certain time the subject "Daily bias' was the most trendy topic on youtube because it attracted lots of views

Now , Daily bias can feel complicated.. especially if you watch videos that are short and not indepth 

The ideal way ICT taught daily bias is what am about to explain to you but I dont trade this way in real life because as at the time I was learning it , I found the ideal daily bias stuff too complicated.

So I decided to stick with a simpler method of finding my bias , which you will find in the video below

16/22

Ideal ICT daily bias method is literally trading from buyside to sellside

Or we can as well say , trading from ERL to IRL and vice versa

But the market can get way more complicated and this idea can be very difficult to carry out so there is a deeper explanation that can help you better

Each of the 3 PD arrays we working with now there is a reason they are all in pairs

To effectively get your daily bias right you have to TRADE FROM LEFT WING TO RIGHT WING OR VICE VERSA

Imagine all BSL , BEARISH FVG , BEARISH RB are all in a family called the LEFT WING and SSL , BULLISH FVG , BULLISH RB in the other family called the RIGHT WING

With this separation in your head ... its easier to understand the next tweet 

17/22

This diagram below shows you the two wings

LEFT wing (red) and RIGHT WING (green)

Always know that the left wing PD arrays always initiate sell moves while the right wing PD arrays always initiate buy moves

Now to effectively understand ICT ideal daily bias you need to know its all about 3 things on the DAILY TIMEFRAME

-Where is current price ?

-What PD ARRAY is price coming from?

-What PD array is price expanding to ?

Answering these questions requires you to apply the left to right wing theory I came up with

If price is coming from mitigating a bearish FVG its going to RIGHT WING which is either bullish FVG or SSL or Bulish RB.

So you mark the right wing pd arrays and use lower time frame entry models to trade towards the CLOSEST Right wing PD array

This is also done vice versa .... price coming from Bullish RB/SSL/Bullish FVG is usually moving towards BSL/BEARISH RB / BEARISH FVG

18/22

Look at this image below ....

what do you see ?

Price takes out BSL .... then repriced to Bullish FVG

Meaning , once the BSL is taken ,you are waiting for market structure shift on the MTF (medium timeframes) to know when price is ready to move to the next opposite wing pd array on the DAILY CHART

So another grand question .... 

Where else does price go from here ? 

What will the next daily candle do ?

Well .. the medium timeframes always give you the HINT 

Example if the 1hr chart trend remains bearish and keep respecting bearish pd arrays , it means this FVG wont hold to push price to another opposite wing pd array ... so it means price will keep falling to the next FVG lower

Having a smart entry model makes you know, and you trade towards the next bullish FVG lower.

If it doesnt hold price too ... it goes lower till the SSL beneath it , all of these are still opposite WING PD arrays in relation to the intial BSL run or sweep.... 

If such scenario happens , we say price is still in that initial order flow or price delivery .... this remains so until one of these bullish PD arrays Hold price and cause a reversal towards a bearish wing pdarray (left wing)

19/22

CHOOSING AREAS OF VALUE TO TRADE FROM

The MTF (medium timeframe) analysis is key

It shows you if a particular PD array on the dailychart is holding or not

You are to observe the price action in your MTF during your Killzone so that your cravings for a trade doesn't make you trade outside your killzone 

Best MTF for this is the 1H chart .

Once there is a market structure shift on the 1H and a return to a 1h pd array , you go to lower timeframes LTF to wait for the ICT 2022 entry model to show up

Observe Image in NEXT page.

20/22

Spend time with this image 

You can see the first MSS happening on DAY 1

You see areas marked GREEN are different ICT pd arrays influencing the sells

This is why you should learn other pd arrays because they become more important as you continue your journey

ON the MTF .. once its clear that price structure has changed in favour of a daily pd array ... it means its time to map out pd arrays that will support that move on the 1h chart.

That's where you look for trades.

In this case we bearish and all pd array marked green during NY killzone reinforced sells because the order flow is bearish ... repricing towards bullish FVGs as shown in image above.

21/22

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How to confirm valid PD arrays with lower time frames;

This is where the popular ICT 2022 model becomes handy

During your Killzone , wait for Pd array mitigation on the 1h chart

on the 5M chart that would always show up as a LQT Sweep 

Wait for MSS , and return to BB + fvg as you see in the picture

Target 1:2 / 1:3RR

That's all ... spend time with the image

22/22

🧭 Bull Trap Reversal Strategy (Near the 200 EMA)

Absolutely — here’s a deep, detailed explanation of the Bull Trap Reversal Strategy (near the 200 EMA).

This version goes beyond steps and checklists — it explains why each element matters, how it works in real market behavior, and what to look for in live charts.

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🧭 Bull Trap Reversal Strategy (Near the 200 EMA)

A detailed, concept-based explanation

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🎯 1. What the Strategy Is About

A bull trap is a false bullish breakout — when price breaks above a known resistance level, convincing traders to buy, only to reverse sharply downward afterward.

It’s called a “trap” because buyers who entered expecting continuation get trapped when the price falls back into the range or below the breakout level.

This setup happens frequently near the 200 EMA, where long trends often lose momentum and smart money begins to unload positions.

The goal of this strategy is to identify that moment when optimism peaks, the market reverses, and strong selling follows.

By entering after confirmation, you join the move in the opposite direction — early, safely, and with high reward potential.

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⚙️ 2. Core Concept and Market Psychology

📈 The Emotional Trap

The market moves in cycles of optimism and fear.

During a strong uptrend, traders become confident — “every breakout will continue.”

When price consolidates in a range, many traders wait for a breakout to enter long again.

Once the breakout candle appears, retail traders buy aggressively — thinking a new rally has started.

But at that moment:

Institutions and professional traders begin to sell into that breakout.

Their large sell orders absorb buying pressure.

When buying dries up, price collapses back below resistance.

This is the moment the trap closes.

Retail buyers panic and sell their positions — which accelerates the downward momentum.

That’s what this strategy seeks to catch — the market’s turning point from bullish optimism to bearish reversal.

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📊 3. Technical Structure of the Bull Trap

Step 1: The Uptrend

Price trades above the 200 EMA for a sustained period.

The EMA is sloping upward, confirming bullish momentum.

Buyers have been in control for a while.

Step 2: The Range or Consolidation

After the strong uptrend, price stops rising and starts moving sideways.

This creates a balance zone (range) with:

Resistance at the top — where price repeatedly fails to go higher.

Support at the bottom — where price repeatedly bounces.

This zone reflects a battle between buyers (wanting continuation) and sellers (taking profit).

Step 3: The False Breakout (The Trap)

Eventually, price breaks above resistance.

The breakout candle is usually large, bullish, and often on high volume — designed to convince traders that the uptrend is resuming.

Many traders buy the breakout, placing their stop-loss just below resistance.

But what happens next?

The following candle fails to stay above resistance.

It closes back below the resistance line, invalidating the breakout.

That candle usually has a long upper wick (showing strong rejection).

This is your warning signal that a bull trap has occurred.

Step 4: The Confirmation

The trap is confirmed when price later breaks below the lower boundary (support) of the range.

At that point, the market has shifted from:

Uptrend → Sideways → Downtrend.

The breakdown shows that sellers are now dominant.

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📘 4. Role of the 200 EMA

The 200 EMA acts as a dynamic indicator of overall market trend and trader sentiment:

1. When price is above it:

The general sentiment is bullish.

But once price fakes out above resistance near the 200 EMA and then drops below it, it signals a loss of strength.

2. When price crosses below the EMA:

It confirms a trend reversal.

Many institutional algorithms use this level as a trigger to shift from buying to selling.

So, in this strategy, the 200 EMA helps you:

Identify when an uptrend is mature or overextended.

Filter out weak setups.

Confirm the start of a bearish reversal.

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🎯 5. Entry Logic Explained

There are three possible entry points, depending on your experience and risk preference.

A. Aggressive Entry

Enter immediately after the rejection candle (the one that closes back below resistance).

You’re betting that the trap has already sprung.

Advantage: Best reward potential.

Risk: Possible retest of resistance before dropping.

B. Conservative Entry

Wait for the breakdown below the range’s support.

This is the safest entry, because it confirms that the trap has turned into a full reversal.

You enter on a clear signal of seller dominance.

C. Retest Entry

After the breakdown, price often comes back up to retest the broken support (now acting as resistance).

When a small bearish rejection forms there, that’s a perfect time to enter short.

This offers the best accuracy and smallest stop-loss distance.

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💵 6. Stop-Loss and Take-Profit Logic

🧱 Stop-Loss

Place it above the highest wick of the false breakout candle.

Why? Because if price moves above that level again, it means the trap failed — you must exit.

This ensures your loss is limited to the point where your original thesis is invalidated.

🎯 Take-Profit Targets

Target Explanation Purpose

TP1 Equal to the height of the range (distance from resistance to support) Secure early profit and reduce exposure.

TP2 Next major horizontal support level or previous swing low Capture the main reversal move.

TP3 (optional) Let part of the trade run while trailing the stop above lower highs Ride the new downtrend.

Once TP1 is reached, move your stop to breakeven (your entry price).

This guarantees you can’t lose the trade even if price reverses.

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📏 7. Risk Management Explained

The strategy’s success doesn’t come from being right every time — it comes from:

Controlling loss size, and

Letting winners run.

Follow these rules:

1. Risk only 1–2% of your total capital on any trade.

This prevents large drawdowns.

2. Always plan your trade before entering.

Know your entry, stop-loss, and take-profit levels.

3. Maintain a Reward-to-Risk ratio of at least 2:1.

For every $1 you risk, aim to make $2 or more.

Even if you’re right only 50% of the time, you’ll be profitable long term.

4. Never move your stop-loss farther away.

Stick to your plan. Discipline is your defense.

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🔁 8. Trade Management

Once in a trade:

Monitor price behavior, not emotions.

If a strong bullish candle closes above 200 EMA again — exit.

Trail your stop-loss as price forms new lower highs to protect profits.

Avoid adding to a losing position (averaging down) — the pattern either works or it doesn’t.

Document every trade — entry, reasoning, emotions, and results.

This helps you identify mistakes and refine your execution over time.

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⏱️ 9. Timeframe Selection

Timeframe Use Case Notes

Daily / 4-Hour Swing trading Best balance of reliability and movement.

1-Hour Intraday setups Requires faster reaction; more noise.

15-Minute or below Not recommended Too many fake signals and volatility.

The higher the timeframe, the stronger the pattern.

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📊 10. Example in Practice

Let’s say:

Price is trending upward above the 200 EMA.

Range forms between 1.2000 (resistance) and 1.1800 (support).

A candle spikes to 1.2050, breaking resistance — traders buy.

Next candle closes below 1.2000 — rejection confirmed.

Later, price drops and closes below 1.1800 — full confirmation.

Your Trade Plan:

Entry: 1.1780 (after breakdown).

Stop-Loss: 1.2060 (above trap high).

TP1: 1.1600 (range height).

TP2: 1.1400 (next support).

Result: TP1 and TP2 hit; trade closed profitably.

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🧠 11. The Psychology Behind Its Success

The bull trap works because it targets mass behavior — emotional buying.

Markets are designed to take money from the impatient to the patient.

When traders rush in on the breakout, they provide liquidity for big players to sell.

The rejection candle shows smart money entering short positions.

Your role is to follow the professionals, not the crowd.

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🔄 12. Opposite Setup – The Bear Trap

A bear trap is the exact opposite:

Occurs during a downtrend below the 200 EMA.

Price breaks below support, looks bearish, then reverses sharply upward.

The same rules apply, just flipped — enter long after confirmation above resistance.

The 200 EMA helps confirm that the downtrend may be ending.

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🏁 13. Key Insights to Remember

1. Don’t trade every breakout — wait for the trap.

2. The 200 EMA filters weak setups and confirms overall bias.

3. Rejection and confirmation are critical.

4. Risk management matters more than win rate.

5. Patience is your edge.

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The “Double Top Fake-Out” (also called Trap Short or Bull Trap before Drop)

The “Double Top Fake-Out” (also called Trap Short or Bull Trap before Drop) is a powerful liquidity-based trading strategy used by institutional traders and smart money to exploit retail psychology.

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🧩 1. Concept Overview

A double top is a classic bearish reversal pattern.

It forms when:

Price reaches a high (first top),

Pulls back,

Then retests that high (second top) but fails to break higher.

Most traders will:

Enter short after the neckline breaks,

Place stop-losses just above the tops.

Smart money knows this — and that’s where the setup begins.

The fake-out part occurs when:

Price briefly breaks above the double top, triggering stop-losses and luring breakout buyers,

Then reverses sharply downward as liquidity gets absorbed.

This creates a high-probability short entry.

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📈 2. Market Structure Breakdown

Step 1: Formation Phase

Price trends upward.

It creates two swing highs near the same level — forming the double top.

Between them is a “neckline” — the local support area.

Step 2: Trap Setup

Short traders enter after the second top or neckline break.

Their stop-losses are above the top line.

Smart money pushes price above that top line to trigger those stops — a liquidity grab.

Step 3: Trap Trigger (Fake Breakout)

The breakout candle looks strong — often with high volume.

But the move quickly fails; the next candle closes back below the resistance.

This signals the breakout was fake.

Step 4: Reversal Confirmation

Once price falls back below the breakout zone (and ideally below the neckline), it confirms the trap.

Momentum turns bearish.

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💡 3. Entry, Stop-Loss, and Take-Profit Rules

Component Description

Entry Point Enter short after the fake breakout candle closes back below resistance.

Stop-Loss Place stop-loss just above the fake-out high.

Take-Profit 1 (TP1) At the neckline level (previous support).

Take-Profit 2 (TP2) Measure the height of the double top and project it downward from the neckline.

Optional Re-entry If price retests the neckline from below and rejects it, re-enter short.

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🔍 4. Example Psychology Behind the Move

Market Participant Action Result

Retail traders Short after neckline break Stop-losses above tops

Breakout traders Go long above top Get trapped

Smart money Pushes price up to trigger liquidity Then dumps aggressively

Late sellers Panic and add to the move Strengthens downtrend

This is why it’s called the most reproducible “betrayal” setup — it’s built on predictable crowd reactions.

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⚙️ 5. Best Conditions for This Strategy

✅ Works best in:

Uptrend exhaustion zones (after a long bullish move)

Key resistance areas visible on higher timeframes

Low-volume breakouts followed by high-volume rejections

When there’s news or sentiment driving FOMO buying

❌ Avoid in:

Strong trending markets (without signs of exhaustion)

Low-volatility, sideways ranges

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🧠 6. Bonus Tip — Confirmation Tools

To increase your win rate, combine this strategy with:

Volume analysis → fake breakouts usually have less follow-through volume.

Divergence → RSI or MACD showing bearish divergence at the second top.

Candle patterns → Shooting star, bearish engulfing, or long upper wick confirming rejection.

Liquidity zones → Identify where stop-losses are likely clustered.

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📊 7. Example Trade Plan Summary

Step Action

Identify double top Two highs at same level after an uptrend

Wait for fake-out Price briefly breaks above resistance

Confirm reversal Candle closes back below resistance

Enter short After confirmation candle

Stop-loss Above fake-out high

Target Neckline (TP1) and projected drop (TP2)

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🎯 Summary

> The Double Top Fake-Out Strategy is not about predicting — it’s about reacting to manipulation.

You’re trading after the trap is sprung, not before.

It’s a liquidity-based, psychology-driven strategy with strong repeatability in all markets (forex, crypto, stocks).