Complementing Bias

We know that we build bias and DOL on FLOW, on our daily timeframe. We want quite deep into that and have covered quite a bit with our 60-minute time-frame concepts as well.

Now let’s go over some key signatures on lower timeframes to help you better understand FLUX state.

This is where OTE, finally gets introduced to you guys, as many have been stressing about it for quite a while.

One of the main key signatures you guys should now be getting used to, is when price shows intent.

When we have overlapping confluences on the 60-minute timeframe, and the rain is about to leave the station, we will have to make sure to jump onboard.

Signature intent

This is where it gets interesting, just like with our Po3 concept and the diÉerent phase that our daily candle moves. We can implement that into the fractality of our H1 / 60m timeframe.

In one 60-minute candle, we would want to see it expand higher let’s say (bullish scenario) towards some draw on liquidity, once that expansion candle closes, we want to see a 5m/15-minute low resistance top right? Then the candle after that to retrace and come into our OTE.

From here, if the setting is right, time of day, direction, expansion etc. We will consider that OTE; this can be taken in two ways;

• 5m Timeframe and just shoot it blanco on the 62 fib.

• Wait for complementary arrays on 15m5m and execute on m1/2 confirmations.

  • It’s like a m1/2 OTE inside of a 5m OTE.

Price can always retrace further to the 79 fib on the OTE, so it’s a risk you must accept if you go for the second option.

If the expansion candle is not significant, and previous highs (prior to the expansion) are hanging around there. Remember price could retrace to that level and only then take oÉ unless the momentum is very strong and one-sided.

It’s the distance between let’s say that expansion candle, and the previous high of the candle prior to that. All fractal, just like what we do on previous daily high/lows. It zooms in as previous candle highs/lows if we are on H1.

Red flags

See how these big bearish candles do not fall into place. We do not want to go short here, there is no reason for price to go down, as we know it will want to run those highs, or keep climbing higher to the actual array, in this case being an H4 displacement.

See how there is no bearish intent, weak highs being left behind.

“Market structure + candle formation structure = perfect OTE with order flow. ”

Reverse spotting intent

Let’s take a look of how you can reverse spot intent right;

No intent behind these moves, they might be bulky bearish candles, but the combination plus narrative iswrong with these.

Now see how if you follow the candlesticks, you will understand the story a lot more.

Price leaves weak highs, BSL, because every retracement (red flags) doesn’t do anything in price, they run to an array, in this case a small H1 imbalance, price goes higher, creates more weak highs here, proceeds to sweep liquidity, liquidity grab, and then gives us those infamous signature bullish candles.

There was still space to run up those highs, that BSL. The m15 OTE lines up very nicely with a m15 imbalance in this case. That rebalance retraces price into that OTE and lunges it further up to the inevitable BSL.

When we are not 100% sure of the direction of the day, and we choose to navigate solemnly on H1, we must be nimble. We saw how the continued draw on liquidity was revealed as price showed us more bullish intent.

Summary of OTE

So once price comes into that OTE area. the range between 0.62 and 0.79 you can choose to;

• - Enter right away, covering the full 5minute expansion leg

• - Drop down to the 1/2 m TF and wait for confirmation to enter with more aggressive stops

• - Waiting for 1/2 min confirmation to see if price reacts to the area but keep the stop loss wide.

  • Always the safest option, only negative is that you will miss trades and your RR is the worst of all

    three options.

Setting OTE's

Option A

The regular way of drawing FIBS to find our OTE of 0.62 & 0.79, we use Body to Body.

Not rocket science, it's actually quite a simple way of doing it. It’s not about the FIBS, the OTE zone is where the setup happens, where you can dive into the smaller timeframes and really catch something in FLUX state.

Here we just notice how a normal OTE in that bullish swing gives us a beautiful pocket for price to come back to, in this case we see how it’s an area where lots of arrays overlap, pressure, BPR wick high of the OB.

Option B

Bullish scenario. Now this is something which is a bit more unorthodox, and hasn't been done much, but this method entails drawing the OTE from the most recent strongest OB, in this case bullish, and then the wick high of the expansion move. This gives us a more accurate way of monitoring where the setup will arise as we are looking for going with the momentum.

We can also do this situation when the H1 expansion formulation is very close to each other, and we are waiting for that immediate rebalance. This occurs when the bullish signature candles we are looking for have little room to retrace.

Means that the 60 min candle that opens after that expansion candle does not need to retrace a lot in order to get that immediate rebalance. Then we usually use the option B indeed.