The best strategy
I've traded for 5+ years and tried everything:
•
Penny stocks
•
Options
•
Futures
•
Supply/Demand
•
ICT
This strategy beats ALL of them by a landslide
1. Identify a balance zone
This strategy works by identifying consolidation vs expansion zones
Price is either doing 1 of 2 things...
It's either consolidating (choppy, slow, back and forth)
OR
Expanding (one directional, fast)
This strategy works when price is consolidating
So step 1 is to identify an area of "balance" or consolidation and draw lines on
the edges
This works on all time frames, but here's a $SPY chart on the 30min timeframe
as an example:
After we identify a balance zone we can move on to step 2
2. Waiting for the stop hunt
What is a stop hunt exactly?
Price at some point will want to break out of that consolidation range (either
up or down)
And when it does, you'd expect price to continue in that direction because
i.
New shorts are piling on
ii.
Old buyers have to stop out and sell
But sometimes, institutional buyers will step in and buy all of the people who
are selling (or stopping out)
When this happens, price will immediately reverse and go the other direction
We know it's a stop hunt when price fails to break out..
This strategy comes together with step 3 when you're able to understand
what's going on
If institutions start to buy and drive price the other way, it means 2 things
i.
New shorts will get squeezed
ii.
Stopped out longs will FOMO back in
Both of these will result in driving price higher..
3. Wait for price to come back inside the balance zone
Then buy and target the other side of balance
You can put your stop right under the stop hunt and get a nice R/R
For the people that don’t know, R/R is short for risk/reward…
You can see it even worked going back the other way
Stop hunt above and as we come back inside there's a great short opportunity
right back to the other side of balance.