Wiki source code of OTE Pattern Recognition Notes

Version 10.1 by Drunk Monkey on 2020-06-28 19:38

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	2	{{toc start="2"/}}
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1.2	5	== Optimal Trade Entry Primer ==
	6
3.2	7	* one of many trading patterns, one of the easiest
	8	* trading plan needs to be simple:
	9	** what's your risk model
	10	** how to frame that?
	11	** what makes your entry
	12	** what gives you indicators of bullish/bearish market?
	13	** how do you execute the trade?
	14	** how do you manage the trade?
	15	** where do you take profits?
	16	* what make the market predisposed to go higher or lower?
7.2	17	** look at HTF (M, W, D, 4h) and look for key levels where price has moved away from in the past
3.2	18	** HTF shows where the big players are most likely going to push things around.
	19	** LTF is too noisy to show this detail.
	20	* Assuming bullish market, we are looking for where the market wants to trade higher. OTE is based on buying during the retracements that occur before the further push upwards.
	21	* The impulse move has to incorporate a break in Market Structure.
	22	* Using Fib Retracement as a visual guide, set the following levels
	23	** -1 - Symmetrical Price Swing
	24	** -0.62 - TP2
	25	** -0.27 - TP1
4.1	26	** 0 - First Profit - Scaling
3.2	27	** 0.5 - Equilibrium
	28	** 0.618 - 62% retracement
	29	** 0.705 - OTE 70.5%
	30	** 0.79 - 79%
	31	** 1 - 100%, or likely SL
4.1	32	* OTE (70.5%) is an ideal target. getting deeper is better, but you run the risk of not filling your order. 62% retracement is also acceptable, but it results in smaller profits because our SL range will be larger, necessitating smaller order sizes to maintain our risk profile.
	33	* First Scaling, or slightly before, represents the place to take initial profits. It should be a decent return, preferable better than 1:2 risk/reward, but slightly less than 2 (1.5? 1x75?) is also acceptable.
	34	* Setups on 1h charts better than 5m charts because the pip movements will be larger.
	35	* Key levels xxx.00, xxx.20, xxx.50, xxx.80, yyy.00
7.2	36	* Place the fibs on the body of the candles
	37	* Market structure - example given:
	38	- monthly view
	39	[[image:Screenshot 2020-06-29 at 03.11.56.png]]
	40	\\- daily view
	41	[[image:Screenshot 2020-06-29 at 03.14.02.png]]
	42	\\- 15m view[[image:Screenshot 2020-06-29 at 03.06.46.png]]
	43	* Note the following:
	44	** institutional levels
	45	** old monthly high at 1.1720 (1.17137 rounded)
8.1	46	** price runs down until it hits the 20 level (1.1720), rallies and creates a new short term high (old - middle red line, new STH, top red line. It's also called a "market structure break"
7.2	47	** the new STH makes for a more likely trade opportunity. (market maker model) and opens up the chance for an OTE.
8.1	48	** also, a high, with two lower highs on either side makes that high more significant. when this high is broken, it's a more convincing move than breaking the other shorter term highs, thus giving us the opportunity to find a likely OTE.
	49	** at the fib, we see price rockets away from a STL
7.2	50	* when old highs/lows are broken, trades will tend to reach back to those old positions (retail calls it "support")
3.2	51
3.1	52	== Introduction ==
1.2	53
10.1	54	* sdfg
8.1	55
3.1	56	== Example 1 ==
	57
10.1	58	* example
	59
3.1	60	== Example 2 ==
	61
10.1	62	* example
	63
3.1	64	== Example 3 ==
	65
10.1	66	* example
	67
3.1	68	== Example 4 ==
	69
10.1	70	* example
	71
3.1	72	== Example 5 ==
	73
10.1	74	* example
	75
3.1	76	== Example 6 ==
	77
10.1	78	* example
	79
3.1	80	== Example 7 ==
	81
10.1	82	* example
	83
3.1	84	== Example 8 ==
	85
10.1	86	* example
	87
3.1	88	== Example 9 ==
	89
10.1	90	* example
	91
3.1	92	== Example 10 ==
	93
10.1	94	* example
	95
3.1	96	== Example 11 ==
	97
10.1	98	* example
	99
3.1	100	== Example 12 ==
	101
10.1	102	* example
	103
3.1	104	== Example 13 ==
	105
10.1	106	* example
	107
3.1	108	== Example 14 ==
	109
10.1	110	* example
	111
3.1	112	== Example 15 ==
	113
10.1	114	* example
	115
3.1	116	== Example 16 ==
	117
10.1	118	* example
	119
3.1	120	== Example 17 ==
	121
10.1	122	* example
	123
3.1	124	== Example 18 ==
	125
10.1	126	* example
	127
3.1	128	== Example 19 ==
	129
10.1	130	* example
	131
3.1	132	== Example 20 ==
3.2	133
10.1	134	* example

Wiki source code of OTE Pattern Recognition Notes

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