How to Trade mXmX - a quick thread
The @Chroma_Trading members got early access to these + an 1 hour long VC where I explained all these concepts thoroughly, taught people how to trade the setup, answered all possible questions and even backtested this strategy live 🩷
1/11
The @Chroma_Trading members got early access to these + an 1 hour long VC where I explained all these concepts thoroughly, taught people how to trade the setup, answered all possible questions and even backtested this strategy live 🩷
1/11
How to identify the setup
1. Identify the market structure (bullish / bearish)
2. Wait for a sweep of significant liquidity
3. Wait for a BoS against the market structure
4. Identify an imbalance in the move that broke the structure
5. Identify a possible TP target
2/11
1. Identify the market structure (bullish / bearish)
2. Wait for a sweep of significant liquidity
3. Wait for a BoS against the market structure
4. Identify an imbalance in the move that broke the structure
5. Identify a possible TP target
2/11
How to enter the trade
SL: above the high that swept liquidity
Entry: inside the reversal POI
TP: first liquidity POI
3/11
SL: above the high that swept liquidity
Entry: inside the reversal POI
TP: first liquidity POI
3/11
Possible entry triggers
- sweep of HTF equal highs / lows
- sweep of HTF FVG (tap, eq, full fill)
- sweep of HTF swing low / high
4/11
- sweep of HTF equal highs / lows
- sweep of HTF FVG (tap, eq, full fill)
- sweep of HTF swing low / high
4/11
Possible entry levels:
- LTF FVG tap
- HTF FVG eq
- OB that swept liquidity
- Breaker
- 0.62 fib level
5/11
- LTF FVG tap
- HTF FVG eq
- OB that swept liquidity
- Breaker
- 0.62 fib level
5/11
Possible TP levels
- smooth edges
- swing high / low next to imbalance
- swing high / low
6/11
- smooth edges
- swing high / low next to imbalance
- swing high / low
6/11
Why does this setup work?
- price sweeps liquidity = possibility of reversal
- BoS = higher probability of reversal
- price sweeps LTF imbalance = entry
- after sweeping one side of the liquidity, price looks to sweep the other = TP
7/11
- price sweeps liquidity = possibility of reversal
- BoS = higher probability of reversal
- price sweeps LTF imbalance = entry
- after sweeping one side of the liquidity, price looks to sweep the other = TP
7/11
What pairs to trade?
I like to trade high market cap coins the most: $BTC and $ETH
Altcoins are more driven by news, narrative and momentum so I avoid them
Forex pairs ( $EU, $GU and others) work really well too, just focus higher timeframe POIs
8/11
I like to trade high market cap coins the most: $BTC and $ETH
Altcoins are more driven by news, narrative and momentum so I avoid them
Forex pairs ( $EU, $GU and others) work really well too, just focus higher timeframe POIs
8/11
Best rules to follow
- more liquidity above SL = no trade
- no clear liquidity target as TP = no trade
- no displacement on the BoS = no trade
- 2 losses in a row n the same direction = no trade
- weekend PA / outside of KZ = no trade
9/11
- more liquidity above SL = no trade
- no clear liquidity target as TP = no trade
- no displacement on the BoS = no trade
- 2 losses in a row n the same direction = no trade
- weekend PA / outside of KZ = no trade
9/11
Backtest results:
Coin: $BTC
Timeframe: m5
Period: 2 weeks (24.04 - 07.05)
Trades: 14
Winrate: 71.43%
Profit: 14R
10/11
Coin: $BTC
Timeframe: m5
Period: 2 weeks (24.04 - 07.05)
Trades: 14
Winrate: 71.43%
Profit: 14R
10/11
Thank you for reading this thread, I am free to answer your questions in the comments or DMs!
This was presented beforehand in an 1 hour call in @Chroma_Trading with even more details and lots of questions answered, so if you're not there, you're missing out 😉
11/11
This was presented beforehand in an 1 hour call in @Chroma_Trading with even more details and lots of questions answered, so if you're not there, you're missing out 😉
11/11
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