Blueprint to Success: How to Master Trading Sessions & Planning
👑Pre-Trading Sessions & Planning:
🔥Key Details + Concepts
--------------------------------------
(Psychological, Technical & Concepts):
🟠Psychological:
- Don’t trade if your emotions aren’t aligning with what is on the screen.
- If you’re not super happy about entering, and you don’t fully accept the loss, don’t take the trade.
- Don’t ‘force’ something to work because it won’t.
- Trade as if you are looking for buys and sells in your markup. This removes mental bias, and effectively emotion in trading.
🟠Technical:
- Cause is the most important factor in trading – find what caused the injection of volume (‘follow the money’). Did it get effectively mitigated? Did it leave imbalance? … Find that block of orders and don’t get liquidated
- The more inducement respected, the more liquidity to take out, the bigger the move
- Zones to trade from must have resting orders to mitigate. Make sure they have inducement above/below (or create it), and they are the cause of structural breaks, demand/supply fails etc
- Start analysing on the daily first! Find the intention of price and follow it
- Mark out S/R – (support becomes resistance levels vice versa) as that level will be liquidated to usually meet our orderblock above/below it
- Previous daily/weekly highs/lows can act as strong structural inducement points
- Price needs reason to move to certain levels – imbalance
- Often when we have a low Phase 2 inducement, we will sweep it’s orderblock as a SMT because of the zone’s large imbalance = lack of inducement
- If you don’t spot the buyers/sellers who got swept before entering, you’ll become liquidated
- Mark out pullback zones too
- If we break our LPOD/S, we are effectively going to run through all mitigated price until the next valid orderblock
- Ensure you wait for your respective time-frame reaction (e.g., don’t look for a 1m reversal from a 4h zone)
- If price taps the outside of a zone but doesn’t enter it, it can still be used as inducement
- We don’t recommend stacking countertrend trades
- A mitigation can be confirmed when price sweeps into its previous range over another small-range inducement.
🟠Concepts
- The demand/supply that took out the Phase 1 inducement then gets broken confirms a shift in market structure. If it is respected, we can trade a continuation.
- A ‘slight mitigation’ is when price sweeps liquidity into a range, but doesn’t properly mitigate the orderblock where the high-volume orders lie. Even though we may react from there, we can come back to this orderblock and properly mitigate it, using the ‘slight mitigation’ level as a point of inducement.
- It is important for the AR (automatic rally) to ‘fail’ in a reversal range after the B/SC (Buyers/sellers climax) as it often grabs the LPOD/S (the last point of demand & supply), so it is successfully mitigated
- News candles can be targeted high/lows as they don’t have inducement
- Price works with momentum. You will never see something shoot up or down randomly
- Refine zones by excluding the inducement it swept before it
– draw a line through the orderblock from the inducement it swept. This will refine your orderblock to the pure manipulation *has exceptions*
- If an inducement phase isn’t very clean or only sweeps a small range, there will be another opportunity as more manipulation is needed to fuel a larger move
- Weak highs and lows are determined after a leg has been properly mitigated; the 5-15m TF is best to determine an active zone
- A high/low is likely to be targeted when it wicks the other side’s high/low (to sweep) instead of having a candle closing over (BoS)
- The first part of a ChoCh is often formed from Phase 1 inducement getting swept, creating a slight pullback, then breaking it again to hit the refinement
Used Word Definitions:
- LPOD/S – Last point of demand/supply
- ChoCh – Change of character (a sweep of liquidity then a break of structure)
- BoS – Break of structure (a failure of supply or demand creating a price leg break)
- OB – Orderblock (a valid zone to trade from)
- FVG – Fair value gap (a form of inefficiency/price gaps in the market)
- IMB – Imbalance (a form of inefficiency/price gaps in the market)
- IPA – Inefficient price action (imbalance)
- S&D – Supply and demand (the levels of buying and selling)
- IFC – Institutionally funded candle (a candle created by institutions to push price to a certain area)
- IPB – Inducement Pullback (The level where price pullbacks before a continuation)
- PA – Price action (how price is moving)
- B2S – Buy to sell (often seen as a wick to mitigate or sweep)
- S2B – Sell to buy (often seen as a wick to mitigate or sweep)
- AOI – Area of interest (an area of price that is reactive or tradable)
- POI – Point of interest (a specific point where price is reactive or tradable)
- IND – Inducement (placement of liquidity that is used to manipulate traders)
- EQH/L’s – Equal highs/lows
- SMT – Smart money trap (a zone that doesn’t have liquidity under/above it, and gets run, trapping SMC traders)
- MSS - Market Structure Shift (a confirmed shift in the markets direction towards the next reversal zone)
- Vectors – Large-bodied, impulsive candles that are to push price to its purposeful target
- V-SR – V-Shaped Recovery (quick movement of price to enter and exit a zone)
- TF – Time frame
- FR – Failed Reaction (Internal supply/demand failure)
- OF – Order-flow (the movement of money through the market)
- True Zone – The actual orderblock that will be used which holds the high volume or orders
- PDH/PWH or PDL/PWL – Previous daily/weekly high/low
🟠Colour Codes:
🟠Time and Price (Times in AEST):
ASIA > FRANKFURT > LONDON > NEW YORK
- Asia: – Asia is important to analyse as it can create the model for New York and London its purpose is to create liquidity above and below its session. Mark the bottom and top to create a range, as well as the midline. Often, price will aim to take a high/low or both (AWS) starting with Frankfurt + London Open. If Asia takes a form of liquidity and is impulsive, a continuation trade can be played.
- Frankfurt: - Frankfurt often prepares London for its main movement of the day. It often does this by taking out the high or low of Asia to create an orderblock mitigation for London, creates more Phase 1 inducement for London to take out, or helps to move price to an already-made valid orderblock.
- London: - When London opens, there is a volatility spike in price. London’s purpose is to attack the liquidity created during Asia. Often, London creates a continuation mitigation after 1.5 hours, but can also contribute to a larger liquidity build-up for New York. Entries that induce + mitigate can be taken at the open (sometimes +30). After 2 hours of opening, we often see a shift in direction.
- Pre-NY: - Before New York opens, we often see an impulsive move that directly contributes to the New York session. Sometimes, we can create a valid zone for New York to play from by mitigating high-volume orders. Most often, we see an impulse in price to move into a higher timeframe orderblock to then become targeted liquidity, or we create more low timeframe reversal inducement to then be swept.
- New York: –We open with a volatile shift of momentum. New York’s purpose is to attack the liquidity created during the London session, or to create a continuation from London. The New York trap usually starts 1 hour after opening and reverses. After 1.5 hours of opening (MMM), we often see a clean mitigation of the ‘correct’ orderblock and liquidate the opening move. Sometimes, New York Open can mitigate the high-volume orders and continue in the correct direction of the day.
- London Close – mitigates the peak of NY open / Reversal for a continuation in NY open direction. Sometimes there is a mitigation-inducement before London Close.
- Magic Minute Mitigations (MMM) - refer to high probability trading times that mitigate active continuation orderblocks. We can best see these 1.5 hours after London and New York Opens – rarely, we can see these 3.5 hours after these opens instead.
In the next post I will continue with my 8-step daily markup process and my Asian session manipulation formulas.
If you found this article helpful, please share it with your friends and leave a comment!
Cheers!
🔥Key Details + Concepts
--------------------------------------
(Psychological, Technical & Concepts):
🟠Psychological:
- Don’t trade if your emotions aren’t aligning with what is on the screen.
- If you’re not super happy about entering, and you don’t fully accept the loss, don’t take the trade.
- Don’t ‘force’ something to work because it won’t.
- Trade as if you are looking for buys and sells in your markup. This removes mental bias, and effectively emotion in trading.
🟠Technical:
- Cause is the most important factor in trading – find what caused the injection of volume (‘follow the money’). Did it get effectively mitigated? Did it leave imbalance? … Find that block of orders and don’t get liquidated
- The more inducement respected, the more liquidity to take out, the bigger the move
- Zones to trade from must have resting orders to mitigate. Make sure they have inducement above/below (or create it), and they are the cause of structural breaks, demand/supply fails etc
- Start analysing on the daily first! Find the intention of price and follow it
- Mark out S/R – (support becomes resistance levels vice versa) as that level will be liquidated to usually meet our orderblock above/below it
- Previous daily/weekly highs/lows can act as strong structural inducement points
- Price needs reason to move to certain levels – imbalance
- Often when we have a low Phase 2 inducement, we will sweep it’s orderblock as a SMT because of the zone’s large imbalance = lack of inducement
- If you don’t spot the buyers/sellers who got swept before entering, you’ll become liquidated
- Mark out pullback zones too
- If we break our LPOD/S, we are effectively going to run through all mitigated price until the next valid orderblock
- Ensure you wait for your respective time-frame reaction (e.g., don’t look for a 1m reversal from a 4h zone)
- If price taps the outside of a zone but doesn’t enter it, it can still be used as inducement
- We don’t recommend stacking countertrend trades
- A mitigation can be confirmed when price sweeps into its previous range over another small-range inducement.
🟠Concepts
- The demand/supply that took out the Phase 1 inducement then gets broken confirms a shift in market structure. If it is respected, we can trade a continuation.
- A ‘slight mitigation’ is when price sweeps liquidity into a range, but doesn’t properly mitigate the orderblock where the high-volume orders lie. Even though we may react from there, we can come back to this orderblock and properly mitigate it, using the ‘slight mitigation’ level as a point of inducement.
- It is important for the AR (automatic rally) to ‘fail’ in a reversal range after the B/SC (Buyers/sellers climax) as it often grabs the LPOD/S (the last point of demand & supply), so it is successfully mitigated
- News candles can be targeted high/lows as they don’t have inducement
- Price works with momentum. You will never see something shoot up or down randomly
- Refine zones by excluding the inducement it swept before it
– draw a line through the orderblock from the inducement it swept. This will refine your orderblock to the pure manipulation *has exceptions*
- If an inducement phase isn’t very clean or only sweeps a small range, there will be another opportunity as more manipulation is needed to fuel a larger move
- Weak highs and lows are determined after a leg has been properly mitigated; the 5-15m TF is best to determine an active zone
- A high/low is likely to be targeted when it wicks the other side’s high/low (to sweep) instead of having a candle closing over (BoS)
- The first part of a ChoCh is often formed from Phase 1 inducement getting swept, creating a slight pullback, then breaking it again to hit the refinement
Used Word Definitions:
- LPOD/S – Last point of demand/supply
- ChoCh – Change of character (a sweep of liquidity then a break of structure)
- BoS – Break of structure (a failure of supply or demand creating a price leg break)
- OB – Orderblock (a valid zone to trade from)
- FVG – Fair value gap (a form of inefficiency/price gaps in the market)
- IMB – Imbalance (a form of inefficiency/price gaps in the market)
- IPA – Inefficient price action (imbalance)
- S&D – Supply and demand (the levels of buying and selling)
- IFC – Institutionally funded candle (a candle created by institutions to push price to a certain area)
- IPB – Inducement Pullback (The level where price pullbacks before a continuation)
- PA – Price action (how price is moving)
- B2S – Buy to sell (often seen as a wick to mitigate or sweep)
- S2B – Sell to buy (often seen as a wick to mitigate or sweep)
- AOI – Area of interest (an area of price that is reactive or tradable)
- POI – Point of interest (a specific point where price is reactive or tradable)
- IND – Inducement (placement of liquidity that is used to manipulate traders)
- EQH/L’s – Equal highs/lows
- SMT – Smart money trap (a zone that doesn’t have liquidity under/above it, and gets run, trapping SMC traders)
- MSS - Market Structure Shift (a confirmed shift in the markets direction towards the next reversal zone)
- Vectors – Large-bodied, impulsive candles that are to push price to its purposeful target
- V-SR – V-Shaped Recovery (quick movement of price to enter and exit a zone)
- TF – Time frame
- FR – Failed Reaction (Internal supply/demand failure)
- OF – Order-flow (the movement of money through the market)
- True Zone – The actual orderblock that will be used which holds the high volume or orders
- PDH/PWH or PDL/PWL – Previous daily/weekly high/low
🟠Colour Codes:
🟠Time and Price (Times in AEST):
ASIA > FRANKFURT > LONDON > NEW YORK
- Asia: – Asia is important to analyse as it can create the model for New York and London its purpose is to create liquidity above and below its session. Mark the bottom and top to create a range, as well as the midline. Often, price will aim to take a high/low or both (AWS) starting with Frankfurt + London Open. If Asia takes a form of liquidity and is impulsive, a continuation trade can be played.
- Frankfurt: - Frankfurt often prepares London for its main movement of the day. It often does this by taking out the high or low of Asia to create an orderblock mitigation for London, creates more Phase 1 inducement for London to take out, or helps to move price to an already-made valid orderblock.
- London: - When London opens, there is a volatility spike in price. London’s purpose is to attack the liquidity created during Asia. Often, London creates a continuation mitigation after 1.5 hours, but can also contribute to a larger liquidity build-up for New York. Entries that induce + mitigate can be taken at the open (sometimes +30). After 2 hours of opening, we often see a shift in direction.
- Pre-NY: - Before New York opens, we often see an impulsive move that directly contributes to the New York session. Sometimes, we can create a valid zone for New York to play from by mitigating high-volume orders. Most often, we see an impulse in price to move into a higher timeframe orderblock to then become targeted liquidity, or we create more low timeframe reversal inducement to then be swept.
- New York: –We open with a volatile shift of momentum. New York’s purpose is to attack the liquidity created during the London session, or to create a continuation from London. The New York trap usually starts 1 hour after opening and reverses. After 1.5 hours of opening (MMM), we often see a clean mitigation of the ‘correct’ orderblock and liquidate the opening move. Sometimes, New York Open can mitigate the high-volume orders and continue in the correct direction of the day.
- London Close – mitigates the peak of NY open / Reversal for a continuation in NY open direction. Sometimes there is a mitigation-inducement before London Close.
- Magic Minute Mitigations (MMM) - refer to high probability trading times that mitigate active continuation orderblocks. We can best see these 1.5 hours after London and New York Opens – rarely, we can see these 3.5 hours after these opens instead.
In the next post I will continue with my 8-step daily markup process and my Asian session manipulation formulas.
If you found this article helpful, please share it with your friends and leave a comment!
Cheers!
Join our community: discord.gg/trademaster
All our work is for informational and educational purposes only. Past performance does not guarantee future results.
All our work is for informational and educational purposes only. Past performance does not guarantee future results.
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