- How to practice training the eyes to see swing setups to improve your RR in your trading distribution
- By using the previous day’s chart, you can get a feel for possible places to swing some of your contracts for a bigger reward.
- Swing setups I define as a 1:2 RR – so 1 Risk for at least 2 Reward
- Initial Risk is the easiest way to measure
- Market is run by institutions and institutions are run on maths.
- So I’m using maths to reverse engineer the trades used so I can use it in future
- I’ve gone through 3 examples in the video and below to give you ideas of how to set it up and what to look for.
- It is not an exhaustive list, but it will get you started!
Video:
Example 1
- 15m BTC 2nd 15m bar
- First H1
- H1
- H2
- Double bottom attempt, 3 legs down
- Failed to go above the 200 and broke below the MA?
- What if use stop from the prior day for the bears? Now its a clean breakout below a double bottom for a MM down
- Keep it simple! Strong reversal bar closing on its low!
- Good signal bar from earlier never got taken out – keep stop same place, often sets up a new trade ie DTBRF Double Top Bear Flag
Example 2
- First thing I notice is huge BULL BAR – likely 1R success/fail MM – so measure that
- Then look at followthrough
- BO and FT, buy the FT bar, stop below?
- Spike and channel, buy the channel test with a tighter stop – bet first HTF reversal will fail
- Find TTR on the chart and put one target there and work backwards!
- target is above and find the entry and stop
Example 3
- Buy above a weak 15m bar on a gap up
- Consecutive 15m bull bars after a gap up
- Sometimes it misses. I bought the low of the range, but scalped out before 1:2 RR
- Strong spike measured move – good place to measure from
- Selling below the whole range. The day’s range wasn’t big enough, strong selling on tariff news became the swing short!
- 3 consecutive bear bars – 70% chance second leg sideways to down.
- Can scalp out and swing rest
- Find a pullback, which is a trading ranges on a smaller timeframe
Time for your to practice
- Now when I look at a chart a lot jumps out at me
Zen Trading Tech 
Leave a comment