Trading Strategies

The Strategies Presented here are "Textbook" quality, suggestions of entry and exit points are what defines the strategy. If you will follow them, take into consideration the low liquidity of some trading pairs and the presence of market manipulators. Each strategy can also be used for fully automated trading but exteme backtesting is required before live deployment. All contents are for Educational and is not Intended as a Financial Advice.

Pure Price Action

Price Action trading strips away all indicators and reads the market through raw candlestick behaviour, support and resistance levels, and market structure shifts. The core belief is that price itself contains all the information a trader needs.

The way to trade these patterns is simple, wait for the break-out, confirm with volume. and enter at retest at either previous broken resistance/support or at the broken trend line.

Support & Resistance Retest

Identify a clearly defined support or resistance level that has caused multiple price rejections, wait for price to break through, then enter on the retest of that level as it flips polarity.

Logic: When a level that previously held as resistance is broken, the roles reverse — it becomes support. Market participants who missed the breakout look to enter at the retest, providing the demand that validates the flip.

Key Rules:
Level must have at least two prior significant touches to be considered valid.
Entry is placed at the retest candle — either on the close or on a limit at the flipped level.
Stop loss is placed below the level (for longs) or above (for shorts) — giving the trade room for a wick without full invalidation.
Take profit at the next significant structure level in the direction of the trade.
Invalidation: a candle closes back through the flipped level before take profit is hit.
Risk-to-Reward target: minimum 1:2.

Head and Shoulders

A three-peak reversal pattern where the middle peak (head) is higher than the two surrounding peaks (shoulders), signalling an exhaustion of the uptrend and a likely reversal to the downside.

Logic: The pattern reflects a shift in market sentiment. The left shoulder forms as buyers push price to a new high then pull back. The head forms as buyers attempt one more push but lack the conviction to sustain it. The right shoulder forms as buyers try again but fail to reach the head — confirming that selling pressure is now dominant. The neckline break is the institutional confirmation.

Key Rules:
The two shoulders must be roughly equal in height. A right shoulder significantly higher than the left weakens the setup.
The neckline is drawn connecting the two troughs between the shoulders and the head — it can slope slightly but should not be excessively angled.
Entry on a confirmed candle close below the neckline. Do not enter on a wick break alone.
A retest of the neckline from below after the break provides a second, lower-risk entry opportunity.
Stop loss above the right shoulder.
Take profit measured by projecting the distance from the head to the neckline downward from the breakout point.
Invalidation: price closes back above the neckline after the break — the pattern has failed.
Risk-to-Reward target: 1:2 to 1:4 depending on the size of the pattern.

Symmetric Triangle

A consolidation pattern where price forms lower highs and higher lows converging toward an apex, indicating compressed volatility before a breakout in either direction.

Logic: A symmetric triangle represents a period of indecision where neither buyers nor sellers have control. As the range compresses, energy builds. The breakout direction is typically aligned with the prevailing trend before the consolidation began — the triangle is a pause, not a reversal. The compression itself makes the subsequent breakout more powerful as trapped traders on the wrong side fuel the move.

Key Rules:
The triangle must have at least two touches on both the upper and lower trendlines to be valid.
The breakout should ideally occur between 50% and 75% of the way to the apex — too close to the apex and the move loses energy.
Entry on a confirmed candle close outside either trendline. Volume expansion on the breakout candle strengthens the signal.
Stop loss inside the triangle — just beyond the broken trendline.
Take profit measured by projecting the height of the widest part of the triangle from the breakout point.
A retest of the broken trendline after breakout is common — this is a valid second entry.
Invalidation: price breaks out and immediately reverses back through the trendline with a candle close.
Risk-to-Reward target: 1:2 to 1:3.

Falling Wedge

A bullish pattern where price makes lower highs and lower lows within two converging downward-sloping trendlines, signalling a deceleration of selling pressure and a likely breakout to the upside.

Logic: Despite price continuing to make lower lows, the falling wedge reveals that sellers are losing momentum — each successive push lower is smaller than the last. Buyers are quietly absorbing the selling pressure within the wedge. When price finally breaks above the upper trendline, the trapped sellers who held through the wedge are forced to cover, accelerating the bullish move.

Key Rules:
Both trendlines must slope downward and converge — if the lower line is flat or rising, the pattern is a different structure.
Minimum of two touches on each trendline before the breakout is considered valid.
Entry on a confirmed candle close above the upper trendline of the wedge.
Stop loss below the most recent low inside the wedge.
Take profit at the origin of the wedge — the point where it began forming.
A retest of the broken upper trendline from above after breakout is a high-quality second entry.
Invalidation: price breaks the lower trendline of the wedge with a candle close — structure has broken down.
Risk-to-Reward target: 1:3 to 1:5 on clean setups.

Flag Pattern

A short-term continuation pattern that forms after a strong, impulsive move in either direction. Price pauses and consolidates in a tight, parallel channel that slopes against the prior trend — before breaking out and continuing in the original direction. The flag does not reverse the trend. It continues it.

Logic: The impulse move before the flag (the pole) represents a decisive shift in sentiment — one side overwhelmed the other. The flag consolidation is not a reversal signal. It is the market catching its breath. Participants who missed the initial move are waiting for a pullback to enter, and that demand is what keeps the consolidation orderly and shallow. The breakout from the flag is when those waiting participants commit — and their entries, combined with the trapped participants on the wrong side, drive the continuation of the original trend with equal or greater force than the pole that preceded it.

Key Rules:
The pole must be a sharp, impulsive move — steep angle, minimal retracement candles during the pole itself. Without a strong pole there is no flag.
The flag channel must slope against the prior trend — a bullish flag slopes downward, a bearish flag slopes upward. A sideways consolidation is a pennant, not a flag.
The flag must be proportionally small relative to the pole — a deep, extended consolidation is not a flag and loses the continuation implication.
Entry on a confirmed candle close beyond the trendline in the direction of the original trend — above the upper channel line for a bullish flag, below the lower channel line for a bearish flag.
Stop loss beyond the opposite trendline of the flag channel.
Take profit by projecting the full length of the pole from the breakout point — the measured move target.
A retest of the broken channel trendline after the breakout is common and provides a second entry with a tighter stop.
Invalidation: price closes through the opposite trendline of the flag channel — the consolidation has expanded beyond a flag structure and the continuation thesis is voided.
Risk-to-Reward target: 1:3 to 1:5 depending on the size of the pole.

Rising Wedge

A bearish pattern where price makes higher highs and higher lows within two converging upward-sloping trendlines, signalling a deceleration of buying pressure and a likely breakdown to the downside.

Logic: The rising wedge is the mirror of the falling wedge. Price continues to make higher highs but each rally is smaller and weaker than the last — buyers are losing conviction while sellers are quietly building positions within the compression. The breakdown below the lower trendline traps the buyers who entered late in the wedge, and their forced exits accelerate the move downward.

Key Rules:
Both trendlines must slope upward and converge — a flat lower line changes the pattern classification.
Minimum of two touches on each trendline before the breakdown is valid.
Entry on a confirmed candle close below the lower trendline of the wedge.
Stop loss above the most recent high inside the wedge.
Take profit at the origin of the wedge — the point where it began forming.
A retest of the broken lower trendline from below after breakdown is a valid second entry.
Invalidation: price breaks above the upper trendline of the wedge with a candle close.
Risk-to-Reward target: 1:3 to 1:5 on clean setups.

Diamond Pattern

A rare reversal pattern that forms at market tops or bottoms, resembling a diamond shape — a broadening formation followed immediately by a symmetrical triangle converging to a point, signalling an exhaustion of the trend and an impending reversal.

Logic: The diamond begins with expanding volatility as the trend reaches its peak — price makes wider and wider swings as both bulls and bears fight for control at extremes. This broadening phase reflects maximum indecision and emotional trading. The pattern then shifts into a compressing phase as one side gradually dominates and volatility contracts. The breakout from the compression signals that the dominant side has won and the prior trend is exhausted — reversals from diamond patterns are often sharp and powerful.

Key Rules:
The pattern requires a clear broadening phase (higher highs and lower lows) followed by a contracting phase (lower highs and higher lows) — both phases must be visible.
The pattern is most reliable at a significant market top or bottom following an extended trend.
Entry on a confirmed candle close outside the right side of the diamond — below support for a bearish diamond, above resistance for a bullish diamond.
Stop loss inside the diamond — beyond the last swing point before the breakout.
Take profit measured by the height of the widest part of the diamond, projected from the breakout point.
A retest of the broken boundary is common and provides a second entry opportunity.
Invalidation: price closes back inside the diamond after the breakout.
Risk-to-Reward target: 1:3 to 1:6. Diamond patterns are infrequent but tend to yield large moves when they play out.

Cup and Handle

A bullish continuation pattern where price forms a rounded bottom (the cup) followed by a brief downward consolidation (the handle), before breaking out to continue the uptrend.

Logic: The cup represents a gradual shift from distribution to accumulation — sellers exhaust themselves, price finds a base, and buyers slowly take control, forming the smooth rounded bottom. The handle is a final shakeout — a controlled pullback that flushes out weak holders and allows institutions to add to their positions before the breakout. The rounded nature of the cup (rather than a V-shape) indicates a deliberate, sustainable accumulation process rather than a reactive bounce.

Key Rules:
The cup must be rounded — a sharp V-bottom disqualifies the pattern. The gradual curve indicates steady accumulation.
The two rim points of the cup (left and right) should be at approximately the same price level.
The handle must form in the upper half of the cup — a handle that drops more than 50% of the cup depth is considered too deep.
The handle should slope slightly downward or consolidate sideways — an upward-sloping handle weakens the setup.
Entry on a confirmed candle close above the resistance level at the rim of the cup (the breakout from the handle).
Stop loss below the lowest point of the handle.
Take profit by projecting the depth of the cup upward from the breakout point.
Invalidation: price closes below the bottom of the handle — the accumulation has failed.
Risk-to-Reward target: 1:3 to 1:6 depending on the size of the cup.

Double Top

A bearish reversal pattern where price reaches the same resistance level twice, fails to break above it on both attempts, and then breaks below the intervening support (neckline) — signalling a confirmed shift from uptrend to downtrend.

Logic: The first top shows that buyers pushed price to a level where sellers overwhelmed them. The pullback that follows is sellers taking control. When price returns to the same level and fails again, it confirms that the resistance is strong and that buyers cannot absorb the selling pressure at that zone. Two failures at the same level is institutional distribution — they are selling into every rally attempt. The neckline break is the confirmation that the balance of power has shifted.

Key Rules:
Both tops must reach approximately the same price level — an exact match is not required but they should be within a tight range.
The neckline is drawn at the lowest point of the pullback between the two tops.
Entry on a confirmed candle close below the neckline — not on a wick violation alone.
A retest of the neckline from below after the break is a high-quality second entry with a tighter stop.
Stop loss above the second top.
Take profit by projecting the distance from the tops to the neckline downward from the breakout point.
The longer the time between the two tops, the more significant the pattern — more participants have been trapped.
Invalidation: price closes above either top after the neckline break.
Risk-to-Reward target: 1:2 to 1:4.

Triple Top

A bearish reversal pattern where price tests the same resistance level three times without breaking above it, then confirms the reversal with a break below the neckline formed by the lows between the three peaks.

Logic: A triple top carries more weight than a double top precisely because price attempted the breakout three times and failed on every occasion. Each failed attempt traps more buyers above the neckline who entered expecting a breakout — and every trapped buyer becomes a future seller when price falls, accelerating the move down. Three rejections at the same level is an unambiguous statement from the market that supply at that zone is overwhelming demand.

Key Rules:
All three tops must reach approximately the same resistance level — the tighter the range between them, the stronger the signal.
The neckline connects the two lows between the three peaks — it may slope slightly but should be relatively flat.
Entry on a confirmed candle close below the neckline.
A retest of the neckline from below after the break provides a second entry opportunity.
Stop loss above the third top — or above the neckline for the retest entry.
Take profit by projecting the height of the pattern (from tops to neckline) downward from the breakout point.
Volume typically declines across each successive top — confirming diminishing buying interest.
Invalidation: a candle closes above the resistance level that formed the three tops.
Risk-to-Reward target: 1:2 to 1:5. Triple tops tend to produce more reliable breakdowns than double tops.

Flat Top Triangle

A bullish continuation pattern where price forms a flat resistance level at the top and a rising trendline at the bottom — indicating that buyers are progressively more aggressive while sellers defend the same level, until buyers finally overwhelm them.

Logic: The flat top reveals a consistent supply zone where sellers are active. But the rising lows reveal that buyers are stepping in earlier and earlier each time — unwilling to wait for a deeper pullback. This is accumulation. With each compression of the range, the sellers defending the flat top are gradually exhausted by the increasingly aggressive buyers. When the flat resistance finally breaks, there are no sellers left to stop the move and the breakout tends to be clean and sustained.

Key Rules:
The resistance line must be horizontal — even a slight upward slope changes the pattern classification.
The support trendline must be clearly rising — at least two higher lows to draw the line.
Minimum of two touches on the flat resistance and two higher lows on the support line before trading the breakout.
Entry on a confirmed candle close above the flat resistance level.
Stop loss below the most recent higher low inside the triangle.
Take profit by projecting the height of the widest part of the triangle upward from the breakout point.
A retest of the flat resistance level from above after the breakout is a valid second entry.
Invalidation: price closes below the rising support trendline — the accumulation structure has broken.
Risk-to-Reward target: 1:2 to 1:4.

Flat Bottom Triangle

A bearish continuation pattern where price forms a flat support level at the bottom and a descending trendline at the top — indicating that sellers are progressively more aggressive while buyers defend the same level, until sellers finally overwhelm them.

Logic: The flat bottom reveals a consistent demand zone where buyers are active — but the descending highs reveal that sellers are entering earlier and earlier each time, unwilling to wait for a higher price. This is distribution. The buyers defending the flat support are gradually exhausted by sellers who become increasingly aggressive with every bounce. When the flat support finally breaks, the trapped buyers who held through the entire pattern become forced sellers, accelerating the breakdown.

Key Rules:
The support line must be horizontal — a slight downward slope changes the pattern to a different structure.
The resistance trendline must be clearly descending — at least two lower highs to draw the line.
Minimum of two touches on the flat support and two lower highs on the resistance line before trading the breakdown.
Entry on a confirmed candle close below the flat support level.
Stop loss above the most recent lower high inside the triangle.
Take profit by projecting the height of the widest part of the triangle downward from the breakdown point.
A retest of the flat support level from below after the breakdown is a valid second entry.
Invalidation: price closes above the descending resistance trendline — the distribution structure has broken.
Risk-to-Reward target: 1:2 to 1:4.

Smart Money Concept (SMC)

SMC is based on the premise that institutional traders — banks, hedge funds, and market makers — leave footprints in price. By understanding how these participants engineer liquidity, create imbalances, and distribute positions, retail traders can align with institutional order flow instead of being the exit liquidity for it.

Order Block Entry

Identify the last bearish candle before a bullish impulse (bullish OB) or the last bullish candle before a bearish impulse (bearish OB), and enter when price returns to that zone.

Logic: Order blocks represent zones where institutional orders were placed and partially filled. When price returns to these zones, the unfilled institutional orders absorb price and cause the next impulse in the original direction — institutions are completing their positions.

Key Rules:
The impulse move away from the OB must be strong — multiple candles with little retracement — to confirm institutional involvement.
Entry is placed at the 50% level of the OB candle or at the open of the OB candle for a more aggressive entry.
Stop loss is placed below the full body of the OB (for bullish OBs) or above it (for bearish OBs).
Take profit at the next liquidity pool — equal highs, equal lows, or prior swing points.
Invalidation: a candle closes through the entire OB zone.
Risk-to-Reward target: minimum 1:3.

Fair Value Gap (FVG) Fill

Identify a three-candle imbalance where the high of candle one does not overlap with the low of candle three, creating a gap. Enter when price returns to fill that gap.

Logic: A Fair Value Gap is a price inefficiency — an area where price moved so aggressively that buy and sell orders were not properly matched. Markets have a tendency to return to these areas to rebalance before continuing in the original direction.

Key Rules:
The FVG must be formed by a strong, impulsive move — not slow, grinding price action.
Higher timeframe FVGs carry more weight. A 4H or Daily FVG is more significant than a 5-minute FVG.
Entry at the 50% level of the gap (equilibrium of the imbalance) for best risk-to-reward.
Stop loss below the bottom of the FVG (for bullish) or above the top (for bearish).
Take profit at the origin of the move that created the gap, or at the next structural level.
Invalidation: price fills the entire FVG and closes through it without reversal.
Risk-to-Reward target: 1:2 minimum, often achievable at 1:4 or better on higher timeframes.

Break of Structure (BOS)

A continuation signal occurring when price penetrates a previous structural high or low, confirming that the current trend remains intact.

Note: This is a market depiction and not a standalone strategy. It serves as the fundamental confirmation that institutional order flow is continuing in the direction of the trend.

Change of Character (CHOCH)

The initial indication that the market is attempting a reversal. It occurs when price breaks the most recent structural pivot, signaling a potential shift in institutional bias.

Note: This is a market depiction and not a standalone strategy. It acts as an early warning system that trend momentum is waning and a new structural phase may be beginning.

Inner Circle Trader (ICT)

ICT methodology was developed by Michael J. Huddleston and is centred on understanding how large institutional players — referred to as "smart money" — manipulate price to engineer liquidity before making their real moves. ICT traders focus on specific time windows, market maker models, and precision entry techniques.

Optimal Trade Entry (OTE)

After a displacement move (impulse), wait for price to retrace into the 61.8%–79% Fibonacci zone of the move, entering within this "optimal" range for the continuation of the impulse.

Logic: ICT's OTE is based on the idea that institutional algorithms place their orders in a specific retracement range after engineering a move. Entering within the OTE zone means you are aligning with the same levels where smart money is accumulating or distributing — giving the trade a higher probability of continuation.

Key Rules:
A clear displacement move must occur first — aggressive, impulsive, with minimal retracement candles.
Draw Fibonacci from the swing low to swing high of the displacement (for bullish) or high to low (for bearish).
The OTE zone is between the 61.8% and 78.6% retracement levels.
Look for a rejection candle (pin bar or engulfing) within the OTE zone before entering.
Best applied during the London or New York Kill Zones (02:00–05:00 UTC and 12:00–15:00 UTC).
Stop loss below the swing low of the displacement (for longs) or above the swing high (for shorts).
Take profit at the original swing high/low that began the displacement, or at the next draw on liquidity.
Risk-to-Reward target: 1:3 minimum.

ICT Silver Bullet

A time-specific strategy that trades FVGs formed during three precise one-hour windows: 03:00–04:00, 10:00–11:00, and 14:00–15:00 New York time.

Logic: ICT theory holds that institutional algorithms are programmed to move markets during specific time windows. The Silver Bullet windows are times when smart money creates imbalances (FVGs) as part of their order delivery process. Trading these FVGs within the specific windows aligns retail entries with institutional activity.

Key Rules:
Only trade within one of the three Silver Bullet windows. Outside these windows the setup is invalid.
Price must take out a liquidity level (equal highs/lows, prior swing) before the FVG forms.
Identify the FVG created immediately after the liquidity sweep during the window.
Enter when price returns to the FVG. Use the 1-minute or 5-minute chart for entry precision.
Stop loss beyond the swing high or low that was swept before the FVG formed.
Take profit at the opposing liquidity pool or at a minimum R:R of 1:3.
If price does not return to the FVG within the window, the setup is abandoned. Do not chase.

Judas Swing

At the open of a session, price makes a false move in the opposite direction of the intended daily draw on liquidity before reversing sharply. Trade the reversal.

Logic: Market makers need liquidity to fill large orders. The Judas Swing is a deliberate engineered move to take out retail stop losses and pending orders on the wrong side of the market — providing the liquidity that allows institutions to enter in the true direction. Identifying and trading against the Judas Swing means entering with them.

Key Rules:
Identify the higher timeframe bias (Daily or 4H) to know the true intended direction for the session.
At the London or New York session open, watch for a sharp move against the HTF bias — this is the Judas Swing.
The swing must sweep a prior liquidity pool (equal highs, equal lows, or a session high/low).
Wait for a displacement candle in the direction of the HTF bias to confirm the reversal.
Enter on the first FVG or OB created by the reversal displacement.
Stop loss beyond the extreme of the Judas Swing.
Take profit at the daily draw on liquidity identified from the HTF bias.
Risk-to-Reward target: 1:4 to 1:10 on high-quality setups.

Harmonics

Harmonic trading uses precise Fibonacci ratios to identify geometric price patterns that predict high-probability reversal zones. Each pattern has strict ratio requirements — deviations from the ratios invalidate the setup. The appeal is mathematical precision: either the ratios align or the pattern does not exist. but do note that low liquidity and market manipulators exist there are cases where wicks may invalidate a pattern, but if you will refer retracement on close price, you'll notice the pattern still is valid, so always wait for a candle close before entering a trade.

There are two ways to trade Harmonics, each pattern has points A B C D, Identify what pattern is forming by measuring retracement of C from move AB, then you can take advantage of the price movement while it's completing its pattern. The first strategy is Riding the move at C going to D, the second is after the pattern is completed at point D and riding from point D going back to A.

Bat Pattern

A five-point harmonic pattern with a precise D point at the 0.886 retracement of XA.

Logic: The deep 0.886 entry tolerates more retracement before invalidation, reducing false signals from stop hunts while providing a characteristically high R:R.

Key Rules & Ratios:
AB retracement of XA: 0.382 to 0.500.
BC retracement of AB: 0.382 to 0.886.
CD extension of BC: 1.618 to 2.618.
D retracement of XA: 0.886.
Stop loss beyond point X; close past X invalidates.

Gartley Pattern

Classic five-point harmonic structure centered on the 0.786 Fibonacci retracement.

Logic: Power lies in the confluence of multiple Fibonacci levels at point D, elevating reversal probability.

Key Rules & Ratios:
AB retracement of XA: 0.618. Ideally Precise, but develop your tolerance
BC retracement of AB: 0.382 to 0.886.
CD extension of BC: 1.272 to 1.618.
D retracement of XA: 0.786.
Stop loss beyond point X.

Crab Pattern

Deep extension pattern characterized by an extreme XA retracement.

Logic: The Crab provides the most extreme reversal levels (1.618 XA), allowing for very tight stop losses.

Key Rules & Ratios:
AB retracement of XA: 0.382 to 0.618.
BC retracement of AB: 0.382 to 0.886.
CD extension of BC: 2.24 to 3.618.
D retracement of XA: 1.618.
Stop loss beyond point D extreme.

Butterfly Pattern

Extension pattern where point D terminates beyond point X.

Logic: Captures reversals at extreme extensions, often marking the end of a major impulse wave.

Key Rules & Ratios:
AB retracement of XA: 0.786. Ideally Precise, but develop your tolerance
BC retracement of AB: 0.382 to 0.886.
CD extension of BC: 1.618 to 2.618.
D retracement of XA: 1.272.
Stop loss beyond point D extreme.

Shark Pattern

A 5-point impulse pattern focused on the 0.886 to 1.13 Fibonacci swing.

Logic: Unique structure identifying strong impulse reversals before trend continuation.

Key Rules & Ratios:
AB retracement of XA: 1.13 to 1.618.
BC retracement of AB: 1.618 to 2.24.
CD retracement: 0.886 to 1.13 (of XA).

Cypher Pattern

Geometric pattern utilizing a specific 0.786 retracement of XC.

Logic: High-frequency harmonic that relies on the X-C structure for entry validation.

Key Rules & Ratios:
AB retracement of XA: 0.382 to 0.618.
BC extension of AB: 1.272 to 1.414.
CD retracement of XC: 0.786.

ABCD Pattern

The foundational 4-point structure present in all other harmonic patterns.

Logic: A simple, effective trend continuation or reversal tool. It relies on the symmetry between the AB leg and the CD leg.

Key Rules & Ratios:
AB = CD (Equal length).
Alternative: CD is a 1.272 or 1.618 extension of AB.

Candle Range Theory (CRT)

Candle Range Theory — popularised within the ICT community — focuses on the high and low of a specific candle (usually on the 1H or 4H timeframe) as a defined range. The theory predicts that price will sweep one side of the range, reverse, and then target the opposite side. The mechanics are rooted in how algorithmic systems deliver price.

Classic CRT Setup

Mark the high and low of a specific reference candle. Wait for price to sweep one extreme with a wick, then enter in the direction of the opposite extreme.

Logic: Algorithmic systems are programmed to seek liquidity above highs and below lows before delivering price in the intended direction. The CRT setup exploits this mechanical behaviour by defining the range, waiting for the sweep, and entering after confirmation that the sweep is complete and price is reversing.

Key Rules:
Select the reference candle — typically the prior 1H, 4H, or Daily candle. Mark its high and low precisely.
Wait for price to break above the high or below the low of the reference candle with a wick — the sweep.
The sweep candle must close back inside the reference candle's range — confirming the sweep was a false break.
Enter on the next candle open after the confirming close, or on the first FVG created during the reversal move.
Stop loss beyond the extreme of the sweep wick.
Take profit at the opposite extreme of the reference candle range (initial target), then at the next draw on liquidity beyond it.
Invalidation: price closes outside the reference candle range in the direction of the sweep — the range has expanded, not swept.
Risk-to-Reward target: 1:2 to 1:5 depending on how far the opposing liquidity is.

Nested CRT (Multi-Timeframe)

Apply CRT logic on the higher timeframe to identify the directional bias, then drop to a lower timeframe to execute the same CRT mechanic for a precision entry within the larger range.

Logic: CRT logic repeats across timeframes because the same algorithmic delivery mechanisms operate at every scale. By confirming the CRT on the 4H first, then entering on the 1H CRT in the same direction, the trader gets the directional confidence of the higher timeframe with the precision entry of the lower timeframe — compressing the stop loss and expanding the R:R significantly.

Key Rules:
Identify a CRT on the 4H chart first — sweep and confirming close inside the range.
Drop to the 1H chart. Within the 4H reversal move, identify the 1H CRT playing out in the same direction.
The 1H sweep must be in the same direction as the 4H reversal — both must align.
Enter on the 1H CRT confirmation close. Stop loss is tight — only beyond the 1H sweep wick.
Target the opposite extreme of the 4H reference candle range as the primary take profit.
Risk-to-Reward target: 1:5 to 1:15 on clean setups due to the compressed stop loss.

Elliott Wave Theory

Elliott Wave Theory proposes that markets move in predictable, repeating wave patterns driven by investor psychology. A complete cycle consists of five impulse waves in the direction of the trend and three corrective waves against it. Wave counting is used to identify where price is within the cycle and what move is expected next.

Wave 3 Entry

Identify the end of Wave 2 correction and enter for the beginning of Wave 3 — typically the longest and most powerful wave in an Elliott impulse sequence.

Logic: Wave 3 is the wave where the majority of participants recognise the trend and commit — creating the strongest momentum move of the cycle. Entering at the end of Wave 2 (the corrective pullback) means riding the full power of Wave 3 with a clearly defined invalidation point: Wave 2 cannot retrace more than 100% of Wave 1.

Key Rules:
Confirm Wave 1 — an initial impulse move with five sub-waves visible on a lower timeframe.
Wave 2 retraces Wave 1 — commonly to the 0.500, 0.618, or 0.786 Fibonacci level of Wave 1. It cannot close beyond the origin of Wave 1.
Enter at the end of Wave 2 when a reversal candle or structure break confirms the Wave 2 low is in place.
Stop loss below the origin of Wave 1. A close there invalidates the count.
Target Wave 3 at minimum 1.618 extension of Wave 1 (TP1), 2.0 extension (TP2), or 2.618 extension (TP3).
Wave 3 must be longer than Wave 1. If it is the shortest wave, the count is wrong.
Risk-to-Reward target: 1:3 to 1:6 depending on extension target selected.

ABC Correction Entry

After a completed five-wave impulse, trade the end of the three-wave ABC correction to enter for the next impulse cycle in the same direction as the primary trend.

Logic: After a five-wave impulse completes, the market corrects in three waves (ABC). Wave C typically ends near the 0.618 retracement of the entire impulse. This correction is the market giving traders a second opportunity to enter the primary trend — and it is the highest-probability re-entry point in Elliott Wave methodology.

Key Rules:
Confirm a completed five-wave impulse — all five waves must be identifiable with clear sub-structure.
Wave A is the first corrective move against the impulse. Wave B partially retraces Wave A (0.382 to 0.786 of A). Wave C extends in the direction of A.
Wave C commonly terminates near the 0.618 retracement of the full prior impulse or at equality with Wave A (1:1 projection).
Enter at the projected Wave C termination zone. Confirm with a reversal candle or BOS on a lower timeframe before committing.
Stop loss below Wave C termination (for bullish) — a close beyond it means the correction has extended into a different pattern.
Take profit targets: the high of the prior impulse (TP1), the 1.618 extension of the impulse (TP2).
Risk-to-Reward target: 1:3 to 1:8 on higher timeframe counts.
Invalidation: Wave C extends beyond the origin of the five-wave impulse — the structure is no longer a correction.