Profitability Cheat Sheet
Profitability Cheat Sheet
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elcome to the Profitability Cheat Sheet. This cheat sheet is
designed to give you the knowledge you need, all written down, for
free.
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icture this: tapping into the market to not just trade, but to
genuinely thrive.
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hether you've been trading for a while or just starting, this guide is
here to help you navigate the markets with confidence and, most
importantly, profit. It's time to shake up your approach, fine-tune
your strategies, and embark on an exhilarating journey towards
financial success. So, let’s get started!
Daily Bias:
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aily Bias allows us to trade with the short-term trend, maximising
our efficiency. Most of the time, trading with the overall trend comes
with lag and delays, using Daily Bias removes this issue.
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or session bias, the first candle you need to look at is the daily
candle.
The next candle is the 4-hour.
You look at the previous daily and previous 4-hour candle. Simple as
that.
If both are bearish, then the session bias is bearish. So look for sells.
If both are bullish, then the session bias is bullish too. So look for
buys.
- The base of any key level (FVGs, OBs etc) are Support and resistance.
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- S&R are areas where price has touched and rejected multiple times.
- Now, most people use FVGs and spend AGES trying to master them.
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or a bullish FVG, the first candle’s top wick must not overlap the last
candle’s bottom wick.
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or a bearish FVG, the first candle’s bottom wick must not overlap the
last candle’s top wick.
- To draw the FVG, you drag a box from wick to wick.
- BUT! a FVG is just a S&R on a lower timeframe that wasn’t respected.
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o and find a FVG, using the method I've just shown you, on the 1
hour chart. Now go the 15 minute chart, as you can see it is just a
support and resistance that price broke through.
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ow, I'm not saying FVGs don’t work. All I'm saying is that why try
and overcomplicate it with FVGs, OBs, IFVGs, Breaker blocks,
Breakaway Gaps… When you can just wipe all of them out with S&R.
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o identify S&R, you want to look for areas the price has touched and
been rejected more than 3 times.
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ow, a support level is a level where the price has fallen. It is a
supporting price.
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- A resistance level is a level where price has risen to, and found
resistance.
- A support level can become a future resistance. And vice versa (see
pic below)
AMD
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ccumulation - Otherwise known as ‘Consolidation’ or when the
markets have low volume. It is when the price creates equal lows and
equal highs. This typically happens during Asian sessions and is
followed by Manipulation.
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anipulation - Otherwise known as a ‘fakeout’. Manipulation is when
the market moves in a certain direction after accumulating for a
while, only to reverse and head in the opposite direction. This
typically happens during the London Session. The manipulation is
always fast and aggressive to generate liquidity.
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- D
istribution - or ‘reversal’ is when the price creates significant lows
and highs. (eg. higher highs, higher lows in an uptrend). This typically
occurs during the New York session.
●
OLCH/OHCL:
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ach bullish candle follows this pattern; Open, make a low, flip to
head up and make a high, close.
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ach bearish candle follows this pattern; Open, make a high, flip to
head down and make a low, close.
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ow, the low on a bullish candle (and the high on the bearish candle),
is usually manipulation on a lower timeframe.
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nd then when it flips to make the bullish/bearish candle, that is
distribution on a lower timeframe as well.
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asically, when you see an open candle with no top wick on one side,
you can expect it to flip to create the wick.
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he higher the timeframe, the stronger the sign. So if you see this on
a daily or weekly timeframe, you can almost guarantee that the price
will flip to create the wick.
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or example, if you see a daily candle with no top wick, more often
than not manipulation was to the downside, and distribution will be
up.
- I f you can learn to understand AMD, and then learn to understand the
pattern in which candles move, it will become effortless for you to
read and predict price movements.
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Trading Zones:
- T o Identify the trading zones you need to identify if you’re bullish or
bearish, otherwise known as thedaily bias.
- You need to find the daily bias before you can look for trading zones.
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o identify the trading zone, look for bias, then use or draw the
closest above and below key levels on the 1hr or 15 min time frame.
That is your trading zone.
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ou only trade in confluence with the session bias and in your trading
zones.
Profitability Cheat Sheet
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nce price manipulates, you will then need to look for a sign of what
direction
distribution will go in.
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rice can do 2 things; retrace back to Accumulation after
Manipulating and reject
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off it. OR it will melt through Accumulation after Manipulating.
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or either scenario, you wait for the price to retrace back to
Accumulation (after
either melting through OR rejecting off it) and then break the
retracement.
- First, you want to load up the charts and identify Daily Bias.
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hen identify what phase of AMD we’re in. (you only want to trade
manipulation/distribution)
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ook out for candles that open with no top or bottom wick
(OLCH/OHCL)
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nce the price is entering Manipulation or Distribution, you then
want to look for my entry criteria.
Results:
Profitability Cheat Sheet