As I promised, here comes another thread in terms of POI selection.
If you’ve been wondering, how far should a SLQ be from a POI to valid, flittering between OB,FVG,QMR etc
If you’ve been wondering, how far should a SLQ be from a POI to valid, flittering between OB,FVG,QMR etc
Firstly,you should know that a Point Of Interest can either be an Orderblock, Breaker block, Quasimodo level, Fair Value Gap or even the structural liquidity itself.
A lot of people usually prefer to set their limit order on SLQ directly which is the safest to do but most time it reduces your potential reward. Entering on a SLQ may give you 2.5R while entering on an OB may give you 4R.
Therefore, today, I’m going to vividly explain how to pick a POI depending on the market condition for the setup you are trading.
The key is whenever you want to pick a poi, ensure the poi you are trading from is the nearest to the SLQ. If there’s no POI that’s near to the SLQ, then the setup will most likely invalidate. You may be wondering how near or far should it be for it to be valid or invalid. Chill!
Now let’s take a few real chart instance and see how it had happen to play out in terms of POI and SLQ
This example here is a situation where by price created an SLQ by tapping into a FVG before an OB and price eventually comes back to mitigate the OB for the bullish continuations in both examples
Here’s another example but a bit theoretical than the first one above.
Here, price has one pure FVG which price created an SLQ from and also have another little FVG which is coupled with an OB
In situation,to draw your POI, ensure you are covering the OB with the FVG with it.
Here, price has one pure FVG which price created an SLQ from and also have another little FVG which is coupled with an OB
In situation,to draw your POI, ensure you are covering the OB with the FVG with it.
In these scenarios, price created an SLQ at a random point on the chart and came back to react from the FVG for trend continuation because FVG would always be stronger than any other POI. That’s why I chose to trade from the FVG over any other POI on that chart
In this chart scnerio, the reason why I placed my order on the SLQ is because the SLQ itself has mitigated the OB and even the QMR. Therefore, there no other clear POI to trade from rather than setting the order on the SLQ itself
Now here comes, y’all’s favorite POI because it’s kind of modern and that what’s your idolo uses but trust me this thing would fail or be ignored if there’s a FVG above it or if it’s far from the SLQ
I basically use this QMR if there’s no FVG, or if the OB is too far
I basically use this QMR if there’s no FVG, or if the OB is too far
or if the OB is not clear enough. Then if QMR is clear, then I take my trade from it.
P.S- if it’s not also clear, I set my order on the SLQ
Now, look at the example, we actually have a gap but that’s not a FVG but it’s a liquidity void which is wider than a typical FVG
P.S- if it’s not also clear, I set my order on the SLQ
Now, look at the example, we actually have a gap but that’s not a FVG but it’s a liquidity void which is wider than a typical FVG
That’s why I rather chose to use the QMR instead of using the whole big long gap(LV) that we had right there
And Lastly, this is an example of a breaker block(the first long position). These examples are more like the one above.
Here, price broke a structure which a liquidity void(long FVG) and price created a SLQ before it then later comes to mitigate the BB
Here, price broke a structure which a liquidity void(long FVG) and price created a SLQ before it then later comes to mitigate the BB
In a nutshell, as a rule of thumb,
-If there’s a FVG that’s coupled with SLQ in your setup that’s the most preferable POI to trade from.
-If price has mitigated the FVG to create SLQ, then know price is then coming for the OB.
-If there’s a FVG that’s coupled with SLQ in your setup that’s the most preferable POI to trade from.
-If price has mitigated the FVG to create SLQ, then know price is then coming for the OB.
-If price theres no FVG and the OB is not clear or too far then that’s where QMR comes in
-If the QMR and the OB has been mitigated and there’s no clear POI then set your order on the SLQ
-If the QMR and the OB has been mitigated and there’s no clear POI then set your order on the SLQ
And lastly, we have this year. Price created an SLQ From a FVG then comes to an OB for bearish continuation.
But then, look at that OB well, it looks like an SLQ for the wick above. Yes it is but it has mitigated the wick already and I’m they are too near to each other
But then, look at that OB well, it looks like an SLQ for the wick above. Yes it is but it has mitigated the wick already and I’m they are too near to each other
Therefore, it’s not advisable to consider that wick to be valid anymore. Even if you consider it valid that would be around 2pips SL if this pair was EU and could be giving you around 1:20RR. And you know what 1:20 means? A fantasy or a SL.
Now to people wondering how do if a SLQ is near to the poi or not. Seriously, it boils down to you, your instinct and your eyes but when you backtest well enough, you will know how close an SLQ is usually close to the POI to be valid or be invalid
However, I have a little trick that works for only OB.
As you can see in this schematic, the SLQ was above 50% Fibonacci level and validated the POI and if you look at it well that SLQ is fair to be considered near to the SLQ
As you can see in this schematic, the SLQ was above 50% Fibonacci level and validated the POI and if you look at it well that SLQ is fair to be considered near to the SLQ
Now let’s a take a look at this, as we can see the SLQ is above the 50% fib level and price invalidated the POI. Looking at this with your instinct, it’s fair ebo firm to assume this SLQ is actually quite far to the OB but as I said earlier it only works for OB
Now as you can see this first example, the SLQ is above 50% which makes it invalid for the OB but as you can see QMR is near to it and it makes sense to trade from it without stress
Looking at the second example above as well, the SLQ is also above the 50% level which makes it invalid for the OB but as we can see price reacted from the FVG which makes sense to trade from but this is like a 2R trade which doesn’t really make sense to me but as we can see,
Price use the FVG mitigated as a SLQ for the OB eventually.
Let’s end it here and don’t forget to like, repost, quote and follow
Don’t forget to follow other idans;
@Only1Audi_ @only1chukz @Lucid_AMG @The_4thMan @Emmybabalola01 @Sholly_Pee1 @billionair_code @DestinyOfCrypto
Let’s end it here and don’t forget to like, repost, quote and follow
Don’t forget to follow other idans;
@Only1Audi_ @only1chukz @Lucid_AMG @The_4thMan @Emmybabalola01 @Sholly_Pee1 @billionair_code @DestinyOfCrypto
@TpwithPolarity @SheEvolves_ @IjewemenFortune @DANIEL4TUNE_ @midrizzy1 @Tobiforex_ @Kelvintalent_ @Kelvin_Graph @thissdax for more educational content.
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