Wiki source code of OTE Pattern Recognition Notes

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3.1	1	{{box cssClass="box floatinginfobox" title="Quick Links"}}
	2	{{toc start="2"/}}
	3	{{/box}}
	4
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
11.1	54	* how to annotate the charts to look for specific price patterns
	55	* study for the patterns for a month, and it'll start to become more easily recognizable as you train your brain to recognize it, then see if you can see it live
	56	*
8.1	57
3.1	58	== Example 1 ==
	59
10.1	60	* example
	61
3.1	62	== Example 2 ==
	63
10.1	64	* example
	65
3.1	66	== Example 3 ==
	67
10.1	68	* example
	69
3.1	70	== Example 4 ==
	71
10.1	72	* example
	73
3.1	74	== Example 5 ==
	75
10.1	76	* example
	77
3.1	78	== Example 6 ==
	79
10.1	80	* example
	81
3.1	82	== Example 7 ==
	83
10.1	84	* example
	85
3.1	86	== Example 8 ==
	87
10.1	88	* example
	89
3.1	90	== Example 9 ==
	91
10.1	92	* example
	93
3.1	94	== Example 10 ==
	95
10.1	96	* example
	97
3.1	98	== Example 11 ==
	99
10.1	100	* example
	101
3.1	102	== Example 12 ==
	103
10.1	104	* example
	105
3.1	106	== Example 13 ==
	107
10.1	108	* example
	109
3.1	110	== Example 14 ==
	111
10.1	112	* example
	113
3.1	114	== Example 15 ==
	115
10.1	116	* example
	117
3.1	118	== Example 16 ==
	119
10.1	120	* example
	121
3.1	122	== Example 17 ==
	123
10.1	124	* example
	125
3.1	126	== Example 18 ==
	127
10.1	128	* example
	129
3.1	130	== Example 19 ==
	131
10.1	132	* example
	133
3.1	134	== Example 20 ==
3.2	135
10.1	136	* example

Wiki source code of OTE Pattern Recognition Notes

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