A bullish 3 drive pattern forms when price creates 3 lower lows then has a shift in market structure which then creates a higher low. When the 3 drive patter forms you want to see a HTF liquidity or POI raid either on drive #1 or drive #3
Example of bullish 3 drive pattern with HTF raid on drive #1
🔸PDL raid + 3 drive raid
🔸M5 mss + fvg
🔸DOL = SIBI (TGIF setup)
Example of bullish 3 drive patter with HTF raid on drive #3
🔸3 drive raid + H1 fvg raid
🔸H1 mss
🔸DOL = PWH
A bearish 3 drive pattern forms when price creates 3 higher highs then has a shift in market structure which creates a lower low. When the 3 drive patter forms you want to see a HTF liquidity or POI raid either on drive #1 or drive #3
Example of a bearish 3 drive pattern with a HTF raid on drive #1
🔸PDH raid + 3 drive raid
🔸M15 mss + fvg
🔸DOL = BISI
Example of a bearish 3 drive patter with a HTF raid on drive #3
🔸3 drive raid + old daily high raid
🔸Inversion = mss
🔸DOL = Original Consolidation
Advanced Market Structure | Long Term
🔸Long-Term High (LTH) - ITH that has lower ITH on both sides
🔸Long-Term Low (LTL) - ITL that has higher ITL on both sides
Long Term Highs/Lows form at HTF support/resistance levels and typically during a killzone.
Advanced Market Structure | Intermediate Term
🔸Intermediate Term Low (ITL) - STL that has higher STL on both sides
🔸Intermediate Term High (ITH) - STH that has lower STH on both sides
LTH, ITH, STH | Example
Now we'll put it all together and include narrative:
Entry: 1st Leg Distribution
- After M5/M15 mss the M15 fvg provides 1st leg distribution entry for 2r
Entry: 2nd Leg Redistribution
- After M15 bos another M15 fvg provides 2nd leg redistribution entry for over 3r to the weekly DOL which was the daily fvg
And just to be clear this is not hindsight analysis. All of it was called out in real time in my Discord. All you need is 1-2 of these setups a week and you can make a great living once you scale up capital.
Sign up for my Lifetime+ Membership to get live access to my real time trade signals & follow closely along my journey to 1M in funded capital. whop.com/dangstrat/
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With a top down analysis we will start by taking a look of the economic calendar to guide us for the week. High impact news everyday this week but CPI should cause the most volatility so could potentially eye for Tuesday to set high/low of the week depending on bias & PA.
$DXY | M
Now for charts we will look at HTF then work our way down. Dollar has respected the monthly fvg and is currently right at the monthly range high.
🔸Bias (Draw on Liquidity)
🔸Narrative
🔸Liquidity
🔸Market Structure
🔸Entry Model
🔸Risk/Reward
🔸Preparation, Execution, Management
🔸Time & Economic Calendar
🧡&🔁
In simple terms my trading model starts with #TheStrat for HTF quarterly/monthly directional bias. Once I know this I move down to the weekly/daily timeframes and use #mondayrange, #MMXM, #PO3/#AMD to get my bias for the week and day.
When you understand the narrative and see that there's a clear draw on liquidity for your A+ setup, then it becomes very easy to execute the trade on M1-M5/M15 once there's a significant raid and shift in market structure.
My trading performance started significantly improving once I started backtesting. The goal of backtesting is to practice executing your model over and over again, not a bunch of different models. This quote is a great analogy for backtesting.
Pros to Backtesting:
- Learn if your trading model is working or not
- Improves edge as you collect more data
- Trains your eye to see setups form in real time
- Gives you confidence when executing trades
- You don't abandon model when you go through DD periods
Thread on using confluence to find the stronger & weaker pair🧵
As always everyone should first be looking at DXY closely for confluence when trading EU (EURUSD) or GU (GBPUSD) as these pairs should be moving inversely with the dollar.
Use DXY to determine bias to either go long or short then look at EG (EURGBP) next to determine which pair is going to be the weaker or stronger pair.
Thread on High vs Low Probability Market Conditions & Setups🧵
🧡&🔁
Knowing the difference between high vs low probability market conditions/setup is what separates traders from being non-profitable to profitable and is how traders take their game to the next level.
Key Factors For High Probability Market Conditions: 1. Clear Draw on Liquidity 2. Price Follows a Narrative 3. Confluence between DXY and other pairs 4. Low Resistance Liquidity Run 5. Classic Buy/Sell Day Profiles 6. HTF Expansion 7. Setup forms during killzone