Here is a three simple steps to creating a mechanical trading system.
The three key elements I focus on for mine is under:
My time based market cycles
Liquidity
How delivery actually shifts
A THREAD 🧵
The primary struggle for retail traders is identified as a lack of deep knowledge of how the market actually operates
•Ineffective Education: Retail traders are often focused on the wrong things, such as basic candlestick patterns, and need instruction on how the market truly moves.
•The "Psychology Cope": The source dismisses the common assertion that psychology is the biggest hurdle, labeling it the "biggest cope in the trading industry" ." If a trader truly understands the markets and has a reliable system, they can trust it, even when facing losses.
•Inconsistency: The overwhelming majority of traders fail to achieve consistency. Traders who are not consistent often end up "blowing money" and putting it into the pockets of others
Core market principles
1 - The Market Follows a Predictable System and Time Cycles
•Time is the Driver: Time is the only element that moves these markets. The market moves within "real time cycles," not random patterns.
2 - Liquidity and Market Maker Function
•Liquidity Defined: Liquidity rests above cycle highs and below cycle lows.
3 - Delivery Shifting at Key Levels
•Delivery Shift as Confirmation: After liquidity is taken (e.g., a cycle high is run), the trader must wait for the market to signal that "delivery is shifting" before taking a position.
All I focus on is trading retracements & reversals.
Most people think it’s all about trying to catch the low & high of the market by “guessing”
I use my three candle rotation for the confirmation to know when to look for the retracement or reversal.
Here show in a thread 🧵
Core Concept:
Market Shift Delivery as a crucial signal indicating exactly when the market is going to change its intended direction and trade into a specific objective sought by the trader.
This concept is central to the 3 Candle Rotation Trading Strategy