OTE Pattern Recognition Notes

== 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

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** -1 - Symmetrical Price Swing

24

** -0.62 - TP2

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** -0.27 - TP1

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** 0 - First Profit - Scaling

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** 0.5 - Equilibrium

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** 0.618 - 62% retracement

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** 0.705 - OTE 70.5%

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** 0.79 - 79%

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** 1 - 100%, or likely SL

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* 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

== Introduction ==

== Example 1 ==

== Example 2 ==

== Example 3 ==

== Example 4 ==

== Example 5 ==

== Example 6 ==

== Example 7 ==

== Example 8 ==

== Example 9 ==

== Example 10 ==

== Example 11 ==

== Example 12 ==

== Example 13 ==

== Example 14 ==

== Example 15 ==

== Example 16 ==

== Example 17 ==

== Example 18 ==

== Example 19 ==

== Example 20 ==

Wiki source code of OTE Pattern Recognition Notes

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		1	{{box cssClass="box floatinginfobox" title="Quick Links"}}
		2	{{toc start="2"/}}
		3	{{/box}}
		4
		5	== 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
		37	== Introduction ==
		38
		39	== Example 1 ==
		40
		41	== Example 2 ==
		42
		43	== Example 3 ==
		44
		45	== Example 4 ==
		46
		47	== Example 5 ==
		48
		49	== Example 6 ==
		50
		51	== Example 7 ==
		52
		53	== Example 8 ==
		54
		55	== Example 9 ==
		56
		57	== Example 10 ==
		58
		59	== Example 11 ==
		60
		61	== Example 12 ==
		62
		63	== Example 13 ==
		64
		65	== Example 14 ==
		66
		67	== Example 15 ==
		68
		69	== Example 16 ==
		70
		71	== Example 17 ==
		72
		73	== Example 18 ==
		74
		75	== Example 19 ==
		76
		77	== Example 20 ==
		78
		79