ISR METHOD
WelcomeMy Name is Informed and I have been trading the financial markets for a few years, and through my years of trading I have notice certain things about the market that I have been blind to before.
The MARKETS are not free markets determined by random price movement but markets that move influenced by those able to see both sides of the markets(market makers), these price movement can be understood and modelled to take advantage of price for a profit.
The ISR Method is not created but discovered as this kind of price structure reveals itself continuously in the Forex, Stock and other markets.
I will be continuously improving the first post with information concerning the method and as we make progress.
ISR stands for
I - Induce
S - Stop Hunt
R - Run for profit
These are the three elements that you will find in price. Some times it's clear and sometimes it's not. Stocks are my favourite when it come to this then follows currency since they do move in a similar but not exact way.
1. Bullish and Bearish Sentiment
Before we are able to start talking about trade setups we need to first talk of bullish and bearish sentiment.
We may all have different views and theories of how the market moves up and down but what we all have in common is that we search for repetitive things in it in order to make a profit.
In stocks for the ISR Method we will use the weekly time frame but for forex and metals like silver we will be using the 4hr time frame.
These time fames were not chosen at random as over time they have proven to work well in sentiment direction which is an advantage for the trade set up.
The charts are to be kept as clean as possible from any other indicators except for the 3 ema wave(Thank you Raghee Horner) which have the settings of...
60 ema High - Green
60 ema Close - Blue
60 ema Low - Red
Stock Bull and Forex Bull
Whenever the Weekly candle for stock closes above the ema wave then we are in a bullish sentiment.
Whenever the 4Hr candle closes for fore closes above the ema wave then we are in a bullish sentiment.
Stock and Forex Bear
Whenever the Weekly candle for stock closes below the ema wave then we are in a bearish sentiment.
Whenever the 4H candle closes below the ema wave then we are in a bearish sentiment.
Stock and Forex Sentiment
Without this sentiment we wont be able to better direct our trade set ups and might be entering into trade contrary to the trend as we seek products(Stock or currency pairs) that show a consistency in trend movement.
2. ISR Structure
For The Trade Setup we will be using a one hour chart for forex and a Daily time frame for Stock
I will be discussing the setup structure then later ill talk of it in details. Sentiment is the key to be able to trade this setup effectively
(A) Induce
The first thing that the market makers will do is that they will induce you to go in the right direction at the wrong time. They do this by provoking you to see that the market is going up or down at that time with moves that seem what positive in that direction
(B) Stop Hunt
The stop hunt is followed after the induction to take out stop losses along with inducing you to go in the wrong direction. The Induction with the stop hunt is a classical ISR method price action structure.
(C) Run for Profit
After the stop hunt the market makers then begin to move the price in the intend direction to make a profit. this is seen by a push up or down in a zig zag manner.
This is to serve to build up an understand of the price structure of a trade, and I will be going into detail concerning this as we progress father.
For stocks we look for these structure on a daily time frame and then for forex and other markets(will give details later) we look for the set up on the H1
If you try go down to the 15min you will find setups along with the perfect opportunity of frustration and getting burned.
3. The Anatomy of a Trade Setup
I am in conflict between first releasing the ISR threading skill post or the entry setup post, nevertheless I will first speak of the ISR trade setup then at a later stage introduce the ISR threading skill.
a) We have previously established that we do not trade except for the trade being in the direction of the sentiment. There will always be setups that appear in the direction that the sentiment doesn't point, but to be a successful trend trader means that we do not trade all trends especially those that do not fall inline with our sentiment.
b) After the Stop hunt we wait for price candle to pop up(if buying) or pop down(if selling) and close. We then wait for price to have a pull back candle or a doji that closes( some form of resistance) then finally anticipate a candle that will break the previous resistant candle'- Important!
c) The Stop loss will be place just below the ema wave as seen on the image with a risk to reward ratio of 1:2( will explain at a later stage the reason)
Details
4. Pair Selection
The following pairs are not the complete list but a few Fore pairs that you may begin practicing the method on without much head ackees
EURJPY
GBPNZD
GBPUSD
AUDUSD
EURUSD(This one may have some attitude)
OIL
I will be editing this information as i seek to make it more simpler and more clear over time.
5. The Anatomy of a SHL(IMPORTANT)
https://www.forexfactory.com/thread/...4#post14474474
6. The Origin - The sweet spot of ISR
https://www.forexfactory.com/thread/...4#post14499784
Rules
This will be a part of house keeping to protect the beautiful thing that we have here.
1. NO INDICATOR IS ALLOWS EXCEPT FOR THE 3 EMA WAVE
2. When posting a trade please post two charts
a) 4H Sentiment chart
b) 1H setup chart
The M15 Breeze Setup
- FOREX
https://www.forexfactory.com/thread/...5#post14457465
- CRYPTOCURRENCY
https://www.forexfactory.com/thread/...8#post14474248
In the posts to follow I will do my best to do justice to the trade method and reveal to you the keys for a successful trade setup.
I will later be putting up rules for posting trade setups and behaviour in this thread so we may all be able to get along.
