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Wiki source code of OTE Pattern Recognition Notes

Version 7.2 by Drunk Monkey on 2020-06-28 19:25
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Drunk Monkey 3.1 1 {{box cssClass="box floatinginfobox" title="**Quick Links**"}}
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Drunk Monkey 1.2 5 == Optimal Trade Entry Primer ==
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Drunk Monkey 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?
Drunk Monkey 7.2 17 ** look at HTF (M, W, D, 4h) and look for key levels where price has moved away from in the past
Drunk Monkey 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
Drunk Monkey 4.1 26 ** 0 - First Profit - Scaling
Drunk Monkey 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
Drunk Monkey 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
Drunk Monkey 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)
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.
47 ** the new STH makes for a more likely trade opportunity. (market maker model) and opens up the chance for an OTE.
48 **
49 * when old highs/lows are broken, trades will tend to reach back to those old positions (retail calls it "support")
Drunk Monkey 3.2 50
Drunk Monkey 3.1 51 == Introduction ==
Drunk Monkey 1.2 52
Drunk Monkey 3.1 53 == Example 1 ==
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55 == Example 2 ==
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57 == Example 3 ==
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59 == Example 4 ==
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61 == Example 5 ==
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63 == Example 6 ==
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65 == Example 7 ==
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67 == Example 8 ==
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69 == Example 9 ==
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71 == Example 10 ==
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73 == Example 11 ==
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75 == Example 12 ==
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77 == Example 13 ==
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79 == Example 14 ==
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81 == Example 15 ==
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83 == Example 16 ==
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85 == Example 17 ==
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87 == Example 18 ==
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89 == Example 19 ==
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91 == Example 20 ==
Drunk Monkey 3.2 92
Drunk Monkey 1.2 93