Finding the Solutions to my Early Struggles

Unnecessary noise in the charts is something that is faced at all levels of trading. Whether it is in the beginning where too many concepts become overwhelming or at a more advanced level where you overcomplicate the charts, this is something that needs to be addressed. If the first step of a system is not a clear and defined filter, then anything that follows will lack real clarity.

The goal of relevant swings is to focus on one timeframe, once specific high or low, and one reaction to establish a bias on market direction. The way price engages these specific areas is what aligns your focus on the right side of the market while filtering everything else out.

To think like a trader means to react to the current development in the market and make a decision backed by a confirmation. The struggle comes when you attempt to place a prediction on the market. This is where incorrect biases turn into forced losses and are taken personally.

Instead, this is where a layer of confirmation is added before considering an entry in the direction of the bias. Daily profiles use the development of the current daily candle to determine if the expectation for that daily candle will actually follow through. Lacking alignment means the day is reassessed from top to bottom without question. If the development does show alignment with one of the three daily profiles, only at that point is the bias confirmed.

If there is any lack of structure in the previous setups of a system, entries are where that becomes exaggerated. It becomes easy to get caught up in random events in the noise of lower timeframes which draw you into false opportunities. This is a mistake that compounds quickly and can turn one poor choice into a series of damaging outcomes.

Decisions on the lower timeframes for entry must always be relative to the higher timeframe framework and expectation. That is the only way to remain rooted in logic. Entries are only considered once framed alongside a daily relevant swing reaction and alignment of a daily profile. This allows you to focus on one side of the market and understand exactly how the current session should develop to position for.

YM Long Trade Breakdown

Using the current development of the daily candle, the daily framework is showing the manipulation of a relevant low with failure swings above as a draw. This sets the expectation for the rest of the daily candle to be a continuation into the highs.

Then comes confirmation to both set the expectation but also frame the New York session in that direction. The daily profile provides alignment of a bullish 01:00 reversal which means the 08:00 candle is set for a continuation to the upside.

Now that it has already been established that the New York session is set to continue and expand to the upside into the opposing highs, an entry signature can be used to position. The low of the 08:00 candle is framed with a run on a short-term low, closure back above downclose candles, and support from the 9:30 market open. This allows for a high confluence entry to get onside with the move higher.

Here the follow through of the move can be viewed. The most simple approach to trade management will always be taking a fixed 2R once the objective is reached. However, the benefit of trading expansion daily candle and high-quality sessions is that there is nearly always room for more using dynamic trade management.

Zooming out, the logic can be viewed where the daily profile allows for the 08:00 continuation into the failure swings above. The entry was positioned after the low of the New York session was formed to position for the move already expected to take place.

ES Long Trade Breakdown

Again, pairing the development of the current daily candle alongside the daily framework suggests a continuation to the opposing daily high. This provides a potential range of opportunity from the current price to the target above.

This example shows alignment of a bullish 18:00 reversal daily profile which sets the 08:00 candle to be in the continuation. In this moment, it is understood that the daily candle is in a supporting framework to expand higher with alignment of a profile for the New York session to continue.

The first continuation signature within the 08:00 candle frames the low of the New York session. There is a divergence off the lows, close through valid downclose candles, paired with the 9:30 open which is another high-confluence entry.

The market respects this continuation signature and expands to the upside throughout the session. The initial push allows for 2R to be achieved, but even more is offered for the remainder of the day.

The same idea is acted on here where the entry takes place once the low of the 08:00 candle is formed. The bias and confirmation do the real work to allow this move to follow through to the high above.