Hint:
Most breakouts are false, especially if they pause and consolidate around the breakout area for 10-15 candles (distribution on the lower timeframe)
A real breakout doesn't give you time to enter at a premium or discount.
@traderbloum Reversal applies to:
• Turtle soup (expansion>false breakout> REVERSAL)
• Smart money reversal (expansion from reaccumulation> REVERSAL at htf pda)
• Rejection blocks (expansion into rejection blocks and then REVERSAL)
Obs and fvgs = retracement > expansion.
Not reversal.
More on my beloved turtle soup;
Note the different characteristics of a real breakout vs a false breakout.
• Real breakout: breaks low, leaves fvg behind (3 candles break throgh), instantly rejects and expands away.
• False breakout: price refuses to close through the level.
So how does it work?
1. The big candle (CRT) would print into or near a key level creating momentum. Price ranges inside the big candle in order to create false hope to chase the momentum.
How are buyers induced?
Market makers engineer patterns that induces retailers to buy. One of the most effective psychological methods is false momentum which is built on fear and greed.
@oftenenuff On my personal I will risk 2%. And pyramid into my position as the candles print in my favor.
That way 1 clear trade idea can turn into 30-40% gain instead of fighting the indecisive candles everyday/week
@AljazTS trade a monthly candle -> pyramid weekly candles,
trade a weekly candle -> pyramid daily candles, etc.
do all simultaneously and you can maximize gains within 1 HTF idea.
There is at least one clean weekly range every month.
There is at least one clean daily range every week.
There is at least one clean 4h range every day.
Choose your cup of tea and exploit it.