AREAS OF CONFLUENCE

Market Structure - As markets decline and make lower lows, each new swing lower in price is anchored or directly reacting to another swing higher or lower. Every swing in price has an equal counter swing it is unfolding from and attempting to fulfill.

Any Short Term Long (STL) that has a higher STL on both sides of it is considered an Intermediate Term Low (ITL). Any ITL that has a higher ITL on both sides of it is considered a Long Term Low (LTL).
Any Short Term High (STH) that has a lower STH on both sides of it is considered an Intermediate Term High (ITH). Any ITH that has a lower ITH on both sides of it is considered a Long Term High (LTH).
Trade primarily on the side of the trend. Long on bullish and short on bearish.

Swing Points - Market declines and makes lower lows; on each new swing lower in price, the price is “anchored” or directly reacting to another swing lower

Each swing in price has equal counter swing
PA needs to move at least 40 pips to be considered a swing (on GU at least)
Market trades from short term lows (STL) to short term highs (STH) back to new STL. At STL and STH, PA will develop market structures

Intermediate term low (ITL): STL that has higher STL on either side
Intermediate term high (ITH): STH that has lower STH on both sides
Long term low (ITL): ITL that has higher ITL on either side
Long term high (ITH): ITH that has lower ITH on both sides

Swings: look at swings and understand every move is anchored to previous low or high and PA becomes clear it is pivoting on a 50% basis of the previous lows and highs

If swing moves 50 pips, after consolidation if it continues higher and breaches the swing high, anticipate another 50 pips move added to the low during consolidation
If PA fails to trade above the previous swing high, anticipate a decline of 50 pips from the high made on most recent rally/consolidation

Session High/Low- the high/low of the 3 different sessions. Asia is most important and the high/low usually sets the day’s S&R for London and UK.

Session Time-

Asia 7pm EST -9pm EST (12-4 GMT);
London 3 am – 12 pm EST (9-17 GMT);
NY 8am – 5pm EST (12-20 GMT)

When drawing the high/low of Asia, use the hard bodies and not the wicks. Only use wicks if a candle is a strong hammer.

Range Expansion / Contraction - Daily ranges typically swing from large range days to small range days and vice versa.
Institutional Price Level (IPL) - Price levels where commercials usually enter the market. They are 00, .20, .50, .80 located between every 100 pip marking (e.g. 1.0100, 1.0120, 1.0150, 1.0180)

The Figure - Term used by traders to refer to a 100 point/pip level or even a mid point to the Figure. Example, 1.5550, 1.5450, and 1.5350.
Basic Big Figure Model

Price can trade to and bounce/retrace from a big figure level.
Look for confluence of supporting levels, OTE, etc. Always take the Figure in light of where we stand in the overall market flow, structure, and trend.

Anticipate Sweeps - Anticipate price sweeping higher and lower than the Figure to take out stops above and below the level.

Trading to Prior Low or High:

On Long, when market falls down to prior low, this move is more significant than when market falls down to prior high
On Short, when market trades up to prior high, this move is more significant than when market trades up to prior low
Fibs- Draw fibs using the swings, sweet spot is the 62-79% level with 72% being most optimal
Range Cycle Calculations

Market cycles in large and small ranges, as daily starts to close near prior close it is a small range
For swing high ranges, count day/bars between previous swing highs and multiply by 1.28, then count forward that #. Should indicate where a new high will unfold
For swing lows, count days between prior lows and multiply by 1.28

Pivot Points - Typically, when price is trading above central pivot, it's time to sell. When trading below, it's time to buy. If price has not gone below central pivot for the day, it may act as support. It may act as resistance if price has not gone above central pivot for the day.

Use pivots as a tool to find anticipated levels to trade on in the future. Drawn by hand or indicator from 12am EST. Central pivot acts as an anchor for PA. PA acts like a rubber band; it moves away from central pivot and then pulls back towards it. However, like a rubber band, once trend takes off it will snap and fly. Used best in range trading periods.

Buy Zone- Area below central pivot
Sell Zone- Area above central pivot
You can buy in a sell zone if you are trading between pivots opposed to trend trading

OTE – Optimal Trade Entry - Deep Fib Retracement - The ~62 and ~79 retracement levels because they are almost at the full 100% retracement. OTE would be roughly the 50% level between the 62 and 79 levels.