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Power of Two System

  • #321
  • Jul 10, 2023 4:04am Jul 10, 2023 4:04am
Quoting Bazenga
{quote} No, that wouldn't be the correct range. I will explain the thinking process that one uses to correctly establish the current ranges. First examine the image below. It is the image you had posted, but I have added some numbers on it to make my explanations easier to follow. So here's what you do: You first note the highest fractal within your image. In this case, that fractal is the one labelled 1. Since the price hasn't breached this fractal, and price has been in an uptrend up to that fractal, it becomes our initial reference point. You...
You're a gem! I get it now!
So I assume the M15 range is the same logic? Or can I use the latest fractal (high or low) for the sweep? In Scotts' video, he uses both... and at times I just can't grasp it.
  • #322
  • Jul 10, 2023 4:18am Jul 10, 2023 4:18am
Quoting HazHazHaz
{quote} You're a gem! I get it now! So I assume the M15 range is the same logic? Or can I use the latest fractal (high or low) for the sweep? In Scotts' video, he uses both... and at times I just can't grasp it.
You use the exact same logic on the 15 minute chart to get the ranges. Scott uses a box to better distinguish between his 4 hr and his 15 minute ranges.

Now I think what might be throwing you off is how he enters his trades. There are two modes for entering:

1. An internal fractal sweep of liquidity, where only the most recent 15 minute fractal is considered. In this case, if that most recent fractal got swept outside a killzone, you ignore any extended sweep that then happens within a subsequent killzone.

2. A liquidity sweep of a 15 minute range. Often the 15 minute range is bigger than (external to) the most recent 15 minute fractal, such that an extended sweep that didn't trigger a trade per the conditions of mode 1 above, ends up triggering a trade if it happens within the killzone. This might happen if for instance the 15 minute fractal gets swept just before a killzone, and then as the price continues to retrace, it eventually sweeps the 15 minute range within the killzone. You can then take this as a fresh trigger, and enter the trade.

So for entry mode 1 above, you have to ensure that the fractal that has just been swept is the one immediately before the current price. No other past fractal is considered. But for entry mode 2 above, the fractal swept might be several fractals back, depending on how price has evolved.
  • #323
  • Jul 10, 2023 4:26am Jul 10, 2023 4:26am
Quoting Bazenga
{quote} You use the exact same logic on the 15 minute chart to get the ranges. Scott uses a box to better distinguish between his 4 hr and his 15 minute ranges. Now I think what might be throwing you off is how he enters his trades. There are two modes for entering: 1. An internal fractal sweep of liquidity, where only the most recent 15 minute fractal is considered. In this case, if that most recent fractal got swept outside a killzone, you ignore any extended sweep that then happens within a subsequent killzone. 2. A liquidity sweep of a 15 minute...
I cannot thank you enough! Now onwards towards practicing! Thank you. I'm sure the other members here appreciate it too!
  • #324
  • Jul 10, 2023 4:30am Jul 10, 2023 4:30am
Quoting HazHazHaz
{quote} I cannot thank you enough! Now onwards towards practicing! Thank you. I'm sure the other members here appreciate it too!
Anytime mate! Let's all grow together.
  • #325
  • Jul 10, 2023 6:05am Jul 10, 2023 6:05am
Quoting Bazenga
{quote} No, that wouldn't be the correct range. I will explain the thinking process that one uses to correctly establish the current ranges. First examine the image below. It is the image you had posted, but I have added some numbers on it to make my explanations easier to follow. So here's what you do: You first note the highest fractal within your image. In this case, that fractal is the one labelled 1. Since the price hasn't breached this fractal, and price has been in an uptrend up to that fractal, it becomes our initial reference point. You...
Bazenga, you’re a life saver for the thread man! Thanks for your in depth analysis appreciate you very much
Can't go broke making profit
  • #326
  • Jul 10, 2023 6:07am Jul 10, 2023 6:07am
Quoting FireScape
{quote} Bazenga, you’re a life saver for the thread man! Thanks for your in depth analysis appreciate you very much
My pleasure. Thank you for creating the thread and giving us the chance to discuss this system.
  • #327
  • Jul 10, 2023 8:31am Jul 10, 2023 8:31am
Nice reaction on EU.
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  • #328
  • Jul 10, 2023 8:35am Jul 10, 2023 8:35am
Quoting Paulscaff1
Nice reaction on EU. {image}
it looks like you bought in premium zone
  • #329
  • Jul 10, 2023 8:40am Jul 10, 2023 8:40am
Quoting rehmatkhan00
{quote} it looks like you bought in premium zone
I had H4 marked as a SFT, so thinking long and short were both fair game.....?
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  • #330
  • Jul 10, 2023 8:55am Jul 10, 2023 8:55am
Quoting Paulscaff1
{quote} I had H4 marked as a SFT, so thinking long and short were both fair game.....? {image}
Look at the chart again there is previous Fractal High and Fractal Low and Retesting of Fractal High by price action which confirms NFT, so if we draw premium and discount zone, it becomes clear that we should be looking for short entry as we are in premium zone.
  • #331
  • Jul 10, 2023 9:03am Jul 10, 2023 9:03am
Quoting rehmatkhan00
{quote} Look at the chart again there is previous Fractal High and Fractal Low and Retesting of Fractal High by price action which confirms NFT, so if we draw premium and discount zone, it becomes clear that we should be looking for short entry as we are in premium zone.
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  • #332
  • Jul 10, 2023 9:06am Jul 10, 2023 9:06am
Quoting rehmatkhan00
{quote} Look at the chart again there is previous Fractal High and Fractal Low and Retesting of Fractal High by price action which confirms NFT, so if we draw premium and discount zone, it becomes clear that we should be looking for short entry as we are in premium zone.
If this is what you mean, my candle failed to hit the last fractal high buy 0.1 pips, so the high was still untested (may be broker dependant)
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  • #333
  • Jul 10, 2023 10:00am Jul 10, 2023 10:00am
Quoting Paulscaff1
{quote} If this is what you mean, my candle failed to hit the last fractal high buy 0.1 pips, so the high was still untested (may be broker dependant) {image}
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yeah I may be wrong but this is what I believe should be the case
  • #334
  • Jul 11, 2023 1:16am Jul 11, 2023 1:16am
My 4H bias for the day. Looks like STF across the 3 pairs. Might wait for NY KZ for clearer bias. Happy trading.
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  • #335
  • Jul 11, 2023 2:04am Jul 11, 2023 2:04am
Quoting AzteroiD
My 4H bias for the day. Looks like STF across the 3 pairs. Might wait for NY KZ for clearer bias. Happy trading. {image} {image} {image}
SFT strong follow through you mean?
Same here as well for the 3 pairs.
  • #336
  • Jul 11, 2023 3:33am Jul 11, 2023 3:33am
Quoting 1iquidity
{quote} SFT strong follow through you mean? Same here as well for the 3 pairs.
Yes, you're right.
  • #337
  • Jul 11, 2023 6:34am Jul 11, 2023 6:34am
Quoting Bazenga
{quote} You use the exact same logic on the 15 minute chart to get the ranges. Scott uses a box to better distinguish between his 4 hr and his 15 minute ranges. Now I think what might be throwing you off is how he enters his trades. There are two modes for entering: 1. An internal fractal sweep of liquidity, where only the most recent 15 minute fractal is considered. In this case, if that most recent fractal got swept outside a killzone, you ignore any extended sweep that then happens within a subsequent killzone. 2. A liquidity sweep of a 15 minute...
Hi just wanna clarify, if the M15 fractal/ zone breach occurs before KZ, but the consequent high/ low of the candle is penetrated during the KZ, is that counted?
Please refer to diagram. Thanks for the help!
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  • #338
  • Jul 11, 2023 6:53am Jul 11, 2023 6:53am
Quoting HazHazHaz
{quote} Hi just wanna clarify, if the M15 fractal/ zone breach occurs before KZ, but the consequent high/ low of the candle is penetrated during the KZ, is that counted? Please refer to diagram. Thanks for the help! {image}
Attached Image (click to enlarge)
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Outside of KZ, then you will be waiting for sweep of either fractals shown in the box.
And from what i understand, for SFT there will be no counter trend trades, only for FT then there will be counter trend trades.
  • #339
  • Jul 11, 2023 6:56am Jul 11, 2023 6:56am
Quoting HazHazHaz
{quote} Hi just wanna clarify, if the M15 fractal/ zone breach occurs before KZ, but the consequent high/ low of the candle is penetrated during the KZ, is that counted? Please refer to diagram. Thanks for the help! {image}
Hello Haz.

Ignore all liquidity sweeps (what you are referring to as a fractal breach) that occur outside the killzones. Even if they are only 15 minutes outside the zone.

The entire point of the killzones is that there is less manipulation in them, and more volume, such that prices move with more conviction, increasing probabilities of hitting target. If you start taking trades outside the killzones, you start decreasing the effectiveness of the system. The winning rate will take a hit.

There is only one situation where you might take a trade that swept liquidity outside a killzone: if it subsequently gets an extended sweep, without any inside bars, and finally sweeps the 15 minute range inside the killzone. That's the entry mode 2 I had described in post #322.
  • #340
  • Jul 11, 2023 6:57am Jul 11, 2023 6:57am
Quoting charlienoble
This is just the beginnings of something to aid in this strat. This kind of Ea is difficult to test in the tester as it doesn't open or close any positions. At the moment all this should do is pop an alert when the most recent fractal is pierced. Put it on a 4 hour chart if you wish to help test it. The logic is likely to pop alerts on the most recent fractal of the time frame you are on at the moment. We can try to improve it over time. {file}
Good job sir..
Okechukwu Jacob.C.
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