My Rules and Note:
- Strictly trade with the trend to learn aligning with the multiple time frames.
- Don’t trade the counter-trend for now.
- Use this strategy at least 10 times successfully to believe in the setup.
Name of the strategy: 3-step framework strategy
Read more about this strategy at 3-step framework strategy.
Time frames to use:
We will use only two time frames, 4Hours for (HTF) and 15min for (LTF).
Market structure markup:
- Use 4Hours (HTF) to mark the swing low and high to create a range.
- Mark break of structure (BOS) and market shift (MS – If present).
- Mark supply zones in 4Hours (HTF) in bearish market.
- Mark demand zones in 4Hours (HTF) in bullish market.
Strategy to follow:
Step 1: –>
In 4Hours (HTF), answer the the below two questions:
- Is price bullish or bearish?
- Is price in the continuation or pullback phase?
Example/Answers:
- Price is bullish.
- Price is in pullback phase.
Step 2: –>
Wait for the price to enter into our demand zone. Use any time frame to see the mitigation: 4Hours or 15min.
Now shift to 15mins (LTF) to look for market shift (MS). Look for liquidity sweep in form of V-shape sharp reaction in (MS).
If market shift happens, markup the new 15mins (LTF) zone that lead to (MS).
Wait for the pullback towards the zone. (Use risk entry method.)
Important Note: If it is a extreme zone, be a bit more aggressive as is the last line of defense. Also, a sharp V-shape reaction liquidity sweep is must to enter into high probability trade or wait for additional liquidity sweeps before entry (We need the reaction).
Trade Management Rules:
Set entry limit order on the edge, stop-loss behind the zone or entry manually.
- Stop-loss behind S&D zone (min 2 pips).
- Full take profit at + 3R or nearest S&D zone.
- Set & Forget (No partials or trailing stops).
My RR Rule: I will use 1:5 risk-to-reward as planned. Read here: Decoding the Blueberry challenge.
// 3-Step Framework Strategy Finished. //
Extra bonus tips
If we miss the (15mins LTF entry model) at the 4Hours (HTF) zone zone, don’t worry. Just wait for the next market shift in 15mins (LTF) and then apply the same entry model.
Apply premium-discount tool on the range to learn and be confident.
1:3RR is as per (The Trading Greek rule), but I have 1:5RR in my trade plan. I will use mine (1:5RR) 10 times to see if it works or not. (Later I will see what works the best with the data.)
Lastly, I will fine-tune and modify the strategy slightly if there’s any improvement in this article. That’s it.
