13. The Trade Plan

What to do in a daily basis after opening charts.

1. Is the trade Swing or Intraday?
 - Swing trades HTF are Monthly and Weekly while ETF is Daily
 - Swing2 trade HTF are Weekly and Daily while ETF is H4
 - Intraday trades HTF are Daily and H4 while ETF is H1

2. Identify the Trend on all HTF and draw SD zones on all Time Frames

3. If HTF and ETF trends are not on the chart above, move to the next chart. we will only trade charts with these directions based on the charts.

4. If price is far from the target zone, set a price alert

5. take note of the structure of trade

 - is the strength of arrival strong? 

 - is the time spend on the base too long?

 - is the arrival to the SD zone fast?

 - is there 1:3 RR for swing trade / 1:2 RR for intraday

 - is the SD zone fresh?

 - is the SD a CP or RP

 - is there Level on Level wrt to HTF?

6. Note what zone is In Control for the Higher time Frame

7. Set Entry Price as L1, SL as L2 and TP as 1:2 or 1:3

8. News:

 - for profitable trades, close off all trades affected by the currency 30 mins before the news (AU news means close all au positions). 

 - for profitable trades, close all positions during major EUR and US news. Example of Major News are Interest rate announcements. "If big news comes out if u want to place order always place order at month or week sd zone" - Lan

 - for positions that are in the red, leave the trade.

9. when to move SL = BE? 

10. follow the trade plan. Either Hit SL or TP. no middle ground.

0. Outline

1. What is OFT (high level description of what is OFT and why it works, erc)
2. Market Phases (Price Movements, Price behaviour, price is fractal, uptrend, sideways, downtrend.)
3. Supply and Demand Zones (cp, rp)
4. Trend Line (how to draw)
5. Validated SD zones (rules to validate)
6. Structure of Trade
7. How to identify trend (Uptrend to ND to Downtrend + rules)
8. Types of Entry (Limit vs confirmation)
9. Strategy Overview
10. Trend Setup
11. Location Setup
12. Trend + Location Setup

13. The Trade Plan

3. Supply and Demand Zones

<insert p9 -p 16>
includes Dz, Sz, cp, rp, good base and how to identify supply and demand zones.

Basing candles

page 16:
How to draw SD Zones.
1. Start from the current price
2. "snake" your way from the current price upwards until you hit an ERC or a base.
3. basing candles has to be 6 candles or less.
4. qualify the basing candle - candles with less than 50% of body are qualified.
5. Draw the L1.
     - 15% < body, L1 is on the body of the candle
     - body < 15%, L1 is on the edge of the candle
6. Draw L2. L2 will always be the furthest price.
7. If there is a single base, the whole candle OHLC is the base.
8. note of step base. candles that closes higher than previous are also single candle bases of their own.


Rule:
To validate a Supply Demand Zone, either one of the following conditions must be med:
1. remove an opposing zone. (to validate a demand zone, it needs to remove a supply zone)
2. remove a swing high or low
3. remove trend line.


Exercise:
open up EURUSD chart and identify supply and demand zones.

2. Market Phases

Market Movements

Price Movements, Price behaviour, price is fractal, uptrend, sideways, downtrend.

9. Strategy Overview

Trend Setup
When the Higher Time Frame (HTF) are both in the same direction, we will ride the wave and go to that same direction.
 - when both HTF are uptrend, we buy at a Demand Zone
 - when both HTF are downtrend, we sell at the Supply Zone

Location Setup
When the Higher Time Frame is sideways or has No Direction (ND) we can enter a long or short trade depending on the location of the price.
-when both HTF have No Direction, we sell when the location is high with respect to the higher timeframe
-when both HTF have No Direction, we buy when the location is low with respect to the higher time frame.

Trend + Location
When the Higher Time Frame are both in the same direction AND the price is at a good location, we trade towards the trend's direction.
- when the HTF are uptrend AND the price is low with respect to the HTF in location, we buy at the Demand Zone
- when the HTF are downtrend AND the price is high with respect to the HTF in location, we sell at the Supply Zone

1. What is OFT

Order Flow Trading

What is this strategy?

This strategy is part trend trading. Part of the process is identifying what is the trend. Some orders *can* be counter trend but that is totally up to you if you want to take it.

This is a re-tracement trade. We will not chase for the price. we will wait for price to move then wait for the re-tracement. We enter during the re-tracement. Since prices do not move in one line (like lasers do), re-tracement provides us lower risk during entry.

Order Flow Trading identifies price zones where imbalance occurs. We call them Supply and Demand zones. Supply zones are zone where more sell orders are present than buy orders. This means that price will likely fall after hitting this zone as there are less - to no buy orders sitting on that zone. Demand zones are zone where more buy orders are present than sell orders. This means that price will likely shoot up after hitting this zone as there are less- to no sell orders sitting on that zone.

Price imbalance normally occurs when large institution places a large order in the market. Imagine a Multi-National Company based in Germany needs to pay its employee's salary in US tomorrow. This MNC will EUR and buy USD today. Once they place their large order, a price zone where more buy EUR and sell USD will occur. This MNC just created a Demand zone with it's large order.

<insert page 6 to 8 about imbalance>