I've always loved the 50% retracement tool but never took the time to cater my own strategy to it. If you take the tool right now and go measure any big structure break you'll notice a lot of action right around the 50% level. Whether its a clean bounce or consolidation there's definitely infinite potential here. I know there's plenty of systems that like to use it, but I've never been one for following others.
I'm going to procedurally fine tune this concept into what I think could be a profitable system.
The secondary concept that I'm adding to the 50% retracement is a concept known as The Box Strategy. The Box Strategy or other know as Accumulate, Manipulate, Distribution is a simple concept, but in layman's terms it's a system that takes advantage of MM's manipulation. The idea being that price will start to accumulate, or consolidate creating a box or a ranging area. After price will start to break through this box in a direction, lets say upwards in this example. After price breaks up through the box deceiving and trapping many traders, it will start to break back down through the box. This phase is considered the manipulation. Once price breaks back into the box, we will wait for price to fail breaking back through the top of the the box sing the top as a resistance level, and showing clear signs bears are in control. We then setup a short position inside the box using recent swing point or top of box as stop loss area, and look for 1:2 risk to reward.
I'm going to procedurally fine tune this concept into what I think could be a profitable system.
The secondary concept that I'm adding to the 50% retracement is a concept known as The Box Strategy. The Box Strategy or other know as Accumulate, Manipulate, Distribution is a simple concept, but in layman's terms it's a system that takes advantage of MM's manipulation. The idea being that price will start to accumulate, or consolidate creating a box or a ranging area. After price will start to break through this box in a direction, lets say upwards in this example. After price breaks up through the box deceiving and trapping many traders, it will start to break back down through the box. This phase is considered the manipulation. Once price breaks back into the box, we will wait for price to fail breaking back through the top of the the box sing the top as a resistance level, and showing clear signs bears are in control. We then setup a short position inside the box using recent swing point or top of box as stop loss area, and look for 1:2 risk to reward.
Can't go broke making profit
