Technicals I - Importance of HTF

When it comes to understanding the range, you must also know that not every range will get filled.

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Theory

Most important is that when the higher TF is strongly in a bias that you might have to sacrifice your bias. Don't marry a concept.


It’s all about probability, we don't try and catch bottoms against on-sided momentum. There is no reason to do that. Unless it’s a quick intra-day play. 15-20 pips on LOW ETF, but this is only applicable when the alignment between TIME and ARRAYS are there.


If that is not the case, we will always try and play the 75/25 matrix in high probabilities.


Picking tops and bottoms is one of the most blatantly obvious reasons why traders will take unnecessary losses. As if you are swimming against the stream.


So, for example, even if we have a bearish dealing range, and we are in discount, it doesn't always mean we start buying there. Look at the bigger picture. Is it neutral, did it reach a bullish PDA? Then obviously we can expect price to turn. If price runs aggressively against us, we can always bank a quick scalp play on lower risk, understanding that the draw of liquidity on HTF could be lower.


Once we arrive in premium arrays, we can really then start looking for good shorts, which are momentum driven.


If you don't have experience just yet, start by first understanding the higher probability trades in sync with your dealing range.


Buy low, sell high. It was never rocket science ;)

Project & Resources

Project & Resources

Project & Resources