Wiki source code of OTE Pattern Recognition Notes

Version 19.1 by Drunk Monkey on 2020-06-28 21:11

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12.1	5	== {{id name="Primer"/}}Optimal Trade Entry Primer ==
1.2	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
13.1	18	** HTF shows where the big players are most likely going to push things around.
3.2	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
12.1	52	== {{id name="Intro"/}}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
12.1	58	== {{id name="Ex01"/}}Example 1 ==
3.1	59
10.1	60	* example
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12.1	62	== {{id name="Ex02"/}}Example 2 ==
3.1	63
10.1	64	* example
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12.1	66	== {{id name="Ex03"/}}Example 3 ==
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10.1	68	* example
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12.1	70	== {{id name="Ex04"/}}Example 4 ==
3.1	71
10.1	72	* example
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12.1	74	== {{id name="Ex05"/}}Example 5 ==
3.1	75
10.1	76	* example
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12.1	78	== {{id name="Ex06"/}}Example 6 ==
3.1	79
10.1	80	* example
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12.1	82	== {{id name="Ex07"/}}Example 7 ==
3.1	83
10.1	84	* example
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12.1	86	== {{id name="Ex08"/}}Example 8 ==
3.1	87
10.1	88	* example
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12.1	90	== {{id name="Ex09"/}}Example 9 ==
3.1	91
10.1	92	* example
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12.1	94	== {{id name="Ex10"/}}Example 10 ==
3.1	95
10.1	96	* example
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12.1	98	== {{id name="Ex11"/}}Example 11 ==
3.1	99
10.1	100	* example
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12.1	102	== {{id name="Ex12"/}}Example 12 ==
3.1	103
10.1	104	* example
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12.1	106	== {{id name="Ex13"/}}Example 13 ==
3.1	107
10.1	108	* example
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12.1	110	== {{id name="Ex14"/}}Example 14 ==
3.1	111
10.1	112	* example
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12.1	114	== {{id name="Ex15"/}}Example 15 ==
3.1	115
10.1	116	* example
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12.1	118	== {{id name="Ex16"/}}Example 16 ==
3.1	119
10.1	120	* example
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12.1	122	== {{id name="Ex17"/}}Example 17 ==
3.1	123
10.1	124	* example
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12.1	126	== {{id name="Ex18"/}}Example 18 ==
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10.1	128	* example
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12.1	130	== {{id name="Ex19"/}}Example 19 ==
3.1	131
10.1	132	* example
	133
12.1	134	== {{id name="Ex20"/}}Example 20 ==
3.2	135
10.1	136	* example

Wiki source code of OTE Pattern Recognition Notes

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