$1000 to $1,000,000 in 3 years then almost $2,500,000 since October 2023🤨
How come I can compound trades while keeping losses minimum?
In this thread, I'll explain 12 Entry Models I use on a daily basis to rapidly increase my net-worth as a spot markets day trader | No Leverage, No Shitcoins !! 🧵
Before going through each entry model, I recommend to watch this video about ranges, order-blocks and supply/demand explained in under 35 minutes!
Model 1 | Sell Side Liquidity
Often around the mid range, price will leave a candle with a large buy back wick, this is called the SSL.
Wait for price to sweep & reclaim. Best confirmation is to wait for 4H candle to close above.
Target the first high left above or the opposite of SSL, which is the Buy Side Liquidity (BSL).
Invalidation is simply placing a hard stop below the recent low that was created after the sweep.
Model 2 | Equal Lows Sweep
In this instance, you’d see equal wicks around a clustered area where retest longs have their stops placed below.
Depending on the timeframe of range, you cannot decide how far the sweep is likely to go.
To overcome this, look for an untapped OB/Demand zone below the EQL.
You can enter with a limit order or wait for the sweep & reclaim (similar to Model 1)
Invalidation is simply the OB/Demand showing no reaction within the first couple of H4 candles. Place a hard stop if market is uncertain but I usually use a manual stop in this case to absorb wicks.
Model 3 | Break of Structure
This one is my least favorite as the price action during this is ultimate chop.
You’re looking at a continuation of trend but there will be a weak high left somewhere in the trend.
The thesis is simple; if price goes for the weak high, it indicates a buy pressure that was able to push it that far during a downtrend.
To enter, look for entry at LTF range low or the LTF OB/Demand created as POI after both sides have been swung & swept.
Given the nature of this model, there isn’t much resistance left above after the BOS, therefore you can target fully back to range high.
Invalidation is placing a hard stop below the local low as going back there would indicate a continuation in momentum of trend.
Model 4 | Range Low Sweep
One of my most favorite, simply marking the OB/Demand created below the range low after the sweep or deviated reclaim.
These will get tested 90% of the time & provide ample bounces to scalp.
If unsure, enter on the reclaim (similar to Model 1)
Invalidation is to place the stop below the lower band of OB/Demand but give enough room for wicks.
Target the latest supply created on the fall.
I’ve attached my recent open long on sui as an example from today:
Another one of my most favorite. Have you ever tried to long a breakout of range but end up with no movement?
That is because, altho you’re following the trend> you’re not keeping your eyes open to momentum.
In this model, right after a breakout, an OB/Demand gets created above the high. Thats it, there’s confirmation that some large entity is interested to keep the momentum on price.
Bid the retest, target recent high or all time high depending on the overall market structure.
Invalidation is simple, manually close the trade if price accepts below range high on a couple of H4 candles because that indicates a loss of momentum of trend.
Model 6 | GP inside IMB
GP: Golden pocket
IMB: Imbalance
If you’ve the basic knowledge of fibs, you’d see that my fibs are a lil custom. It’s because they’ve been slightly tweaked to create sniper entries.
Now lets get on to the chart, ever came across one of these where the low & highs just keep swinging & you wonder wether your range was even right all along?
The green boxes are marking out the big green dildos without any retracement. Many people like to use FVG’s in this case; but they’re too wide to find a good RR setup.
Here’s how it works; the 0.618-0.706 is the entry zone & price slicing through the 0.79 is the invalidation.
Keep in mind the latest structure of the trend & TP timely on the bounce. Imbalances more than often, never reach the local top after a retest.
Model 7 | Patterns
This is deemed as beginners thought by some people, although they exist; & well for a reason, you’re just using them wrong.
Step 1: Identify the pattern after the S/R flip because a flip is where the first confirmation for change of trend is present.
On the left you can see the example of H&S pattern formed & the trigger marked once the S/R box bends down.
On the right you can see a shift in trend after sweeping range lows. Once again a bull flag gets formed after the S/R breakout. You can either long the retest on S/R or the basic breakout retest of flag, both work.
Flip the example to other side of each & both will fail because you’ll be trying to force a pattern to work against the trend of individual range pivots.
Model 8 | Failed Auction
This is mother of Model 5. You must be aware of this scenario where the trend & breakout confirmation are there but your trade ends up looking like something as drawn.
This is because although your are following the latest momentum, you have neglected the past trend that formed this recent trend. In this case, there’s a HTF OB/Supply zone present right above the range high breakout.
Unless this is broken through, you cannot enter a long & how to trade its inverse is covered in (Model 12).
Model 9 | Momentum
This is one of the easiest but the most clueless missed setup by traders of all levels.
Looking at this chart without the OB marked, your first thoughts are an entry on the retest of S/R flip.
Keep in mind that for a S/R level to be valid, it must respect the ratio of trend between continuing & retesting. In this case, had the price came back to S/R, it would’ve shown a small bounce but eventually broke down because look at how much it moved after the trendline break, would it make sense for buyers to come back here after being pushed down so much by sellers again?
Continue with the momentum & by your surprise there will be OB / Demands present slightly above the obvious level you can enter.
Place a hard stop below the S/R as more than half of the trend would’ve been absorbed for failed continuation below that.
Model 10 | OB over OB
Order-blocks inside Demands or vice versa, you’ll come across some charts that have clustered areas. Fear not cos it’s a rare opportunity for a high RR setup.
Identity the HTF OB or Demand and wait for it to mitigate, price is most likely to chop above it creating poor lows. Identify LTF OB or Demand inside which will be swept next (using the concept of Model 2 & 4).
Place stop below the low of HTF block & target nearest supply or BSL.
Model 11 | AMD or PO3
Market is against you? Got stopped out? Want to brag a tweet? Fear not because on CT, you’ll find this chart often used by people who have no idea what they’re doing!
For the best AMD, remember Model 4 & 8 to analyze the manipulation to tap into OB or Demand/Supply for a reversal.
This setup is most often used to find 360 trend reversals before distribution phase but you can always enter on the confirmation of price accepting inside the phase completely.
Enter inside Distribution and place a hard stop below the manipulation low, target the opposite side of the range.
Model 12 | Supply Flip
Last but not the least, as a spot trader there comes a point where no trade makes sense as the overall trend is down.
In that case I wait for both LTF & HTF OB / supply zones to flip & provide a confirmation to scalp to next nearest resistance.
The stop goes below the first rejection point of the supply & most often, I use manual price acceptance below it to absorb any wicks.
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setup that makes me $13,000 (1R) per day, a thread with parameters🧵
I’m going to talk to in configuration of a long setup (vice versa applies to shorting)
Step 1 is to identify an uptrend that has started to cool down by ranging sideways. Depending on the time frame it can vary (this can be days to hours)
Step 2 is to zoom in to spot an orderblock below range lows or equal lows (both are same)
You’d place a limit order at the starting body of the block and stop loss below the ending wick of the block.
If the desired area is a cluster of orderblocks, I’d recommend to use a manual candle closure stop loss.
Scaling from making $100 a day to over $200,000 sounds pretty unrealistic, but it's possible !!
In this thread, I'll share my trading plan designed to help you establish a strong baseline for compounding capital over the next 3 years like I did🧵
[I stopped taking partial profits]
While many traders opt for multiple TP targets to secure partial profits along the way, this strategy can often dilute the overall risk-reward ratio (RR) of the trade. In contrast, having a single TP target can lead to more consistent and substantial profits.
Understanding Risk-Reward Ratio (RR)
The risk-reward ratio is a measure of the expected return of an investment relative to the amount of risk taken. It is calculated by dividing the potential profit by the potential loss. For example, a 2:1 RR means that for every dollar risked, the potential reward is two dollars.
Let's consider a BTC/USDT trade with the following parameters:
Entry Price: $30,000
SL: $29,500 (risk of $500 per BTC)
Single TP Target: $31,000 (reward of $1,000 per BTC)
With a single TP target, the RR is straightforward:
RR = Potential Reward / Potential Loss = $1,000 / $500 = 2:1
Now, let's examine a scenario with multiple TP targets:
First TP at $30,500 (50% of position)
Second TP at $31,000 (50% of position)
If you achieve the first TP:
Profit from 50% position: $250 ($30,500 - $30,000) x 50% = $250
If the price continues to the second TP:
Profit from the remaining 50% position: $500 ($31,000 - $30,000) x 50% = $500
Total Profit: $250 (first TP) + $500 (second TP)= $750
In this case, the effective RR changes:
Effective RR = Total Profit / Total Loss = $750 / $500 = 1.5:1
While securing partial profits can provide some immediate gains, it reduces the overall RR from 2:1 to 1.5:1. This reduction means that you need a higher win rate to achieve the same profitability. Furthermore, if the trade stops out at the SL, the full loss is incurred, which can disproportionately impact the overall performance. By sticking to a single TP target, you maintain a clear and consistent RR, making it easier to evaluate the performance of your trades. Capturing the full potential of a trade without diluting the reward ensures that successful trades significantly outweigh the losses.
[I started adding orderblocks and Supply & Demand confluence to basic Support & Resistance]
The Concept of Confluence
Confluence occurs when multiple technical factors point to the same price level, increasing the probability of a successful trade. When key levels align with order blocks or supply and demand zones, it provides a stronger signal that the price is likely to react at these levels.
The Importance of Confluence
Trades taken at confluence points are more likely to succeed because they are based on multiple confirming factors. The alignment of key levels with order blocks or supply/demand zones often results in more pronounced price movements. Confluence allows for better-defined entry and exit points, aiding in effective risk management and enhancing the overall risk-reward ratio.
The image shows Monthly Open paired with an orderblock providing confluence in taking a continuation long on SUI/USDT.
I turned $1000 into $3,678,519 in 3 years without cracking my mind over what everybody else already knows!
If you can't identify the Liquidity, you will be the Exit Liquidity🩸
Here's how you can spot 6 different forms of Liquidity to manifest a high win rate from today🧵
1. Range Bound Liquidity:
As the name suggests, you are looking for liquidity inside the range but the core of which lies outside the actual range; to fade in order to not turn into what they call retail liquidity. For this example, I am using latest BTC Price Action (PA) between March until present day. On the chart, 1 represents a Lower Time Frame (LTF) range, 2 for Higher Time Range (HTF) and 3 for a developing range.
Rule of thumb to note among all 3; Price will at least once, seek latent liquidity above/below its pivots (which is the range high/low) before moving in the initial direction you intended to aim for. This is because, just like you- plenty of same brains across the world were aiming for the same direction except those that sought patience, sometimes even weeks, waiting for them to puke LTF decisions into HTF levels.
Now coming to some facts proven by history and of course own memory (since this thread is how I use liquidity amongst the general concept used by all). If price taps/raids more than twice above/below its pivot, its more likely to fail into those that wait. Right, this is because, at all times, price will fade into latent levels (Order blocks, demands or supply) and since a good number of people who are against technical analysis are being born daily and alive, they will puke into what is clearly on the chart; basic human psychology hehe. You are presented with 2 options; limit order into the fade and become passive liquidity yourself or wait for the reclaim of a range pivot to be a part of active liquidity. If you haven’t noticed yet, 3 is where most including myself could be wrong to form a bias too early, and that is because if you look further, range 3 is smooching the same area occupied by range 2. Now they make babies together which is your negative PNL, just kidding. Now is when you just wait and see where and when, a good area of interest (POI) is created to establish a confirm bias to act upon. One more thing, between 1 and 2, price swept the low first because a ton of visible liquidity was at the lower levels. At 3, there is an order block below too, most including myself waited for it, but never got it so we waited to get into the continuation higher. Despite missing the low, money was still made (substantially) not because the liquidity raid did not happen, instead- trend based liquidity was kept in mind, which is going to be our next point.
2. Trend Based Liquidity:
Right where I left off, order block below 3? No retest? Wait for retest? Or get in higher? But the question is, when? There will always be a trend, if not then it becomes a range. Just like ranges, there is Active Liquidity inside trends. What this means is, you are most likely to not know when it will be inserted into the market, so again, you wait. In this image, I have zoomed into the part where ranges 2 and 3 were from above, except 2 is erased for a cleaner view.
Liquidity inside trends is where price has its final compression before the expansion. The quickest way to find that is by looking for vertical accumulation or distribution where a trend is initially moving towards. In the image, I have expressed these by the $ symbols. As you can see $-A is trending downwards and at one point it finally pukes into a key level. Go back above to the first image and see where it goes. Right, into the order block coming from all the way back. Do you remember the people that were targeting 52k from here? Yeah, rookie pookies. So now onto $-B which is inside an uptrend and back to the headline of this category. Price pukes but it does not take the order block this time, everyone who waited, missed it, what now? As you go further towards $-C, you can see that the wait still isn’t over and the sideliners may have one more chance at filling their bids (including me) but woosh there it goes again. Here is when, confluences come in to play. Remember range 3, it goes for a retest of its high and sells off down again but this time into a freshly created demand zone. Missed that too? No worries, it breaks out above its higher pivot (range high) following another uptrend where you could market in and become active liquidity.
Between all of this action, you got 3 chances to secure a long and oh if you still have your mind glued to percentage movements, it’s time to change that. I could’ve gotten in at first attempt, second or third (which I did) and net result would’ve been the same; +2-3R in profit unless I was being edged to a tight pus… I mean stop loss.
I’ve traded $1000 to $600,000 in less than 2 years without an investor approach, one question I get asked often is; where should a beginner start?
In this thread I’ll list some major references from start to finish which I’ve mastered functional for the current market… https://t.co/O2YYHVpACatwitter.com/i/web/status/1…
1. Technical Analysis does work & you shouldn’t fall prey to people that say it doesn’t. In-fact, TA can help predict news events too like I do for myself before major events like FOMC.
The best channel I recommend for beginners to learn everything about traditional TA is… https://t.co/NOX5wpk5betwitter.com/i/web/status/1…
Speaking of TA, you’ve now learnt what 99.99% already know, so where is the edge you’re going to generate to be profitable in a market dominated by makers & hedge funds?
You will come across breakouts & breakdowns across each trade but only knowing the difference between their… https://t.co/V8cEkEWk33twitter.com/i/web/status/1…