Fundamentals of Trading
May 20, 2023

Algorithm

The algorithm is part of the trading system, so it requires attention. In the algorithm we proceed from the rule that the older timeframe will always be in priority, move on the chart is purely in descending order.

Personally, I use a new chart every day to find trades. I do it so that old ideas do not get bored and my opinion on the market was unbiased. I have a lot of chart templates, I always save global plans, and for intraday positions - a clean chart. The presence of old ideas on the chart sometimes does not allow me to see new ones.

1. Starting from the daily chart you need to see the confirmed structure, its potential and its cancellation zone. These levels are the most important, because entering the ltf can lead to a global goal and take a big muv.

2. Next, I look at the large liquidity zones that have not been withdrawn or, conversely, have already been withdrawn. Collecting liquidity without a breakdown and fixing can lead to the opposite direction.

3. on the chart I mark the range, if there is one. The main thing in a sideways movement is to understand its limits, which you will work with in the future. I seldom use the middle of the ridge, because the allowed rp for the position is rare.

4. If the price has a clear direction, which I have not entered, then the first thing to do is to mark the potential correction zones, respectively, mark the most significant orders.

5. We are not interested in orderblocks with obvious imb from below for a full position, not for a short-term bounce. The 1-4 hour orderblocks require searching for additional factors within them, as they cover a large range.

6. Checking for divergences.

7. Designation of ltf potential formation of different setups.

8. Pre-calculation of the stop, in order to know at a glance the volume of the position opening.

9. In the moment I use the market order, if there is a movement.

10. After opening a position I watch the deal only for the first time, if the price moves away from the entry zone, the successful entry is confirmed. If the price does not leave the entry zone, I control to quickly react.