OFR Ranges
POI types - #1 Extreme
POI types - #2 Flip
POI types - #3 Continuations – wicks only
Also needs to break the candle high (bullish) or low (bearish)
before the retracement → see red arrow
Example engulfing for #1 and #2 POI - Demand
Example engulfing for #1 and #2 POI - Supply
Example overlapping POIs
Another example overlapping POIs
Invalid POI – Demand/Supply zone created by shitwick
If an OFR got broken by a SW and creates a POI by this
(like in this example):
→ do not take any trades from here
→ Wait for new price action to develop
POI sizes – max. 8 pips
POI sizes – min. 1 pips rule
SL sizes
Push-away rule
Choch rule
Choch rule – example real price action
POI closed
after this 1m
candle
Look if price choches to the left on those two scenarios:
→ push-away phase
→ Entry CC
Impulsing rule
If price keeps impulsing after mitigation,
wait for new mitigation of POI and
failure of first CC to enter on second CC
→ Does not matter, if we take out the
first mitigation or not, just start the
process again as soon was we come
back into the POI again
Entries – OFR failure or CC failure
Entries – CC <0,4 Pips rule
If price comes back to the POI, consider those CC sizes:
→ Size of first CC is irrelevant
→ If size of entry CC is below 0,4 pips → do not enter
→ Wait for this one to get failed as well and trade the next CC with proper size
→ If no CC with correct sizes develops (like in example) → no trade
Entries – using the correct 1m candle for mitigation
Example:
- Your POI is created by 16:15
and 16:30 15m candle
- What is the last 1m candle of
the 16:30 15m candle?
- 1m candle which opens
16:44
- First 1m candle able to mitigate
15m POI?
- 1m candle which opens
16:45
- Closes at 16:45:59
- Keep this in mind if price is
closer to the 15m POI as soon
as 15m candle closed
Updated stats on EM3