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Wiki source code of OTE Pattern Recognition Notes

Version 12.1 by Drunk Monkey on 2020-06-28 19:47
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5 == {{id name="Primer"/}}Optimal Trade Entry Primer ==
6
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?
17 ** look at HTF (M, W, D, 4h) and look for key levels where price has moved away from in the past
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
26 ** 0 - First Profit - Scaling
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
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
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)
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"
47 ** the new STH makes for a more likely trade opportunity. (market maker model) and opens up the chance for an OTE.
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
50 * when old highs/lows are broken, trades will tend to reach back to those old positions (retail calls it "support")
51
52 == {{id name="Intro"/}}Introduction ==
53
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 *
57
58 == {{id name="Ex01"/}}Example 1 ==
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60 * example
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62 == {{id name="Ex02"/}}Example 2 ==
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64 * example
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66 == {{id name="Ex03"/}}Example 3 ==
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68 * example
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70 == {{id name="Ex04"/}}Example 4 ==
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72 * example
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74 == {{id name="Ex05"/}}Example 5 ==
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76 * example
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78 == {{id name="Ex06"/}}Example 6 ==
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80 * example
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82 == {{id name="Ex07"/}}Example 7 ==
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84 * example
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86 == {{id name="Ex08"/}}Example 8 ==
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88 * example
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90 == {{id name="Ex09"/}}Example 9 ==
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92 * example
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94 == {{id name="Ex10"/}}Example 10 ==
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96 * example
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98 == {{id name="Ex11"/}}Example 11 ==
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100 * example
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102 == {{id name="Ex12"/}}Example 12 ==
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104 * example
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106 == {{id name="Ex13"/}}Example 13 ==
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108 * example
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110 == {{id name="Ex14"/}}Example 14 ==
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112 * example
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114 == {{id name="Ex15"/}}Example 15 ==
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116 * example
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118 == {{id name="Ex16"/}}Example 16 ==
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120 * example
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122 == {{id name="Ex17"/}}Example 17 ==
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124 * example
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126 == {{id name="Ex18"/}}Example 18 ==
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128 * example
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130 == {{id name="Ex19"/}}Example 19 ==
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132 * example
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134 == {{id name="Ex20"/}}Example 20 ==
135
136 * example