Skip to Content

Wiki source code of OTE Pattern Recognition Notes

Version 8.1 by Drunk Monkey on 2020-06-28 19:35
Show last authors
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 * 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 == Introduction ==
53
54 sdfg
55
56 == Example 1 ==
57
58 == Example 2 ==
59
60 == Example 3 ==
61
62 == Example 4 ==
63
64 == Example 5 ==
65
66 == Example 6 ==
67
68 == Example 7 ==
69
70 == Example 8 ==
71
72 == Example 9 ==
73
74 == Example 10 ==
75
76 == Example 11 ==
77
78 == Example 12 ==
79
80 == Example 13 ==
81
82 == Example 14 ==
83
84 == Example 15 ==
85
86 == Example 16 ==
87
88 == Example 17 ==
89
90 == Example 18 ==
91
92 == Example 19 ==
93
94 == Example 20 ==
95
96