5 Minute Entry, 9:30 Open Short, H12 Bearish Orderblock (Short), M5 Bullish to Bearish Variation, Overnight Session, Trade Of The Day ,

Todays trade of the day setup, was presented in the overnight trading session from the H12 bearish orderblock, with multiple attempts to sweep the liquidity, it still held strong. So it appears at the moment, the strongest short setup in this current downtrending market is an H12 bearish orderblock short. 

1 Minute Entry, 1380 Exponential MA, 276 Exponential MA, 5 Minute Entry, Bearish to Bullish Variation, LIS (Bullish), Month Orderblock, Month Orderblock B&R,

Key Takeaways from Today's Trading Notes:

1. Premarket and Overnight Setup:

   • Successfully executed the premarket trade of the day setup overnight.
   • Focused on the H12 line and M1 demand area for continuation higher.

2. New Moving Average Theory:

   • Tested a new theory using exponential moving averages (EMAs) based on the number of candles printed each day.
   • The EMA approach aligned perfectly with the H12 LIS area, providing a precise entry point.
   • Plan to backtest this method to assess its efficacy in predicting daily entry points and sentiment shifts.

3. Supply and Demand Strategy Adjustment:

   • Revised approach to trading supply and demand levels.
   • Noted that liquidity ranges (order blocks or FVGs) are often fully swept before price moves in the expected direction.
   • Previously, targeted the bottom of the liquidity range in supply areas and the top in demand areas, but this led to frequent stop-loss hits.
   • Adjusted strategy to target the top of the liquidity range in supply areas and the bottom in demand areas.
   • Example: Successfully targeted 18745.50 instead of 18676 for a supply area, achieving the target precisely.

4. General Observations:

   • Adding confluences to trading strategies can enhance precision and outcomes.
   • Excited to further backtest and forward test the new moving average approach to refine daily bias and trading decisions.

Overall, today's trades demonstrated the effectiveness of both the new EMA theory and the revised supply and demand strategy, leading to successful trade execution and positive outcomes.

 

 

 

 

This trade was absolutely beautiful, I also hit the premarket trade of the day setup in the overnight. I was tracking the H12 line in the sand and the m1 demand area off of it for a continuation higher. And actually, decided to random test a new exponential moving average theory, of as many candles that print during the day, using it as my timeline. The theory was that if I mathematically use the exact same timeline as the candles that print per day, then I can get a potentially great read on where the entry for each day may be, and when sentiment could full shift. 

Luckily enough, this first test worked out unbelievably, as the M1 and M5 exponential moving averages sat just below that critical H12 LIS area, and tapped the moving average to the tick, which presented me an opportunity to trade the variation on both timeframe setups and walk away with a great trade on the day. I am very exited to backtest this as I believe it can fundamentally help me curate a daily bias very easily, whether above or below the moving average from a theoretical perspective. 

It never hurts to add extra confluences that can give my specific trading staregy an edge, so Im excited to backtest and forward test my trades with the moving average added. 

 

Another thing that I want to note, Is I have shifted my theoritic approach to the way I trade supply and demand levels. And today it worked well as a price target. I have noticed a recurring theme when I trade supply and demand, and its that whatever the range of liquidity is, whether its an orderblock or a FVG, most of the time, all of the liquidity is swept before it makes a move. I used to play the top of the liquidity range in a demand area, and the bottom of the liquidy range in supply areas, and set my stops losses at the peak of the liquidity area. But I noticed a recurring theme of my stoplloss getting swept, for it to move in my direction after the fact.

So todays example, is perfect to look back on as an area of liquidty getting fully swept, and then going in my direction. Had this been my prior trading strategy, I would target 18676 as its the bottom of the liquidty range for this supply area, instead, I target the top of the liquidity range on the supply area at 18745.50. and we hit our target to the T. 

Great Trade,