FULL GUIDE (Trading Strategy: Combo Algorithm)

Summary

This comprehensive guide introduces the Combo Algorithm trading strategy, breaking it down into five key steps: understanding variables and timeframes, logical elements, the combo process, and identifying trouble areas. It explains the use of volume tools and functions like Order Block and Fractal Point, and demonstrates how to combine these elements for effective trading setups on real market charts.

Takeaways

• 📈 The video presents a trading strategy called the 'Combo Algorithm', which is broken down into five key steps for clarity and ease of understanding.
• 🔍 Step 1 focuses on 'Variables, Functions, and Timeframes', emphasizing the importance of four key variables in market analysis and position opening: Order Block, Rejection Block, Fair Value Gap, and Fractal High/Low.
• 🛠️ The script explains that these variables can perform different functions such as Volume Confirmation, Inducement, Trigger, and serving as Entry points or Trouble Areas in trading.
• ⏱️ Timeframes are crucial in the strategy, with larger timeframes providing stronger variables, and a hierarchical approach to analyzing the market from broader to narrower timeframes.
• 📊 Logical elements are introduced, which are combinations of variables that, when present, indicate market conditions conducive to trading according to the Combo Algorithm.
• 🔗 The video details six logical elements divided into three groups based on their market function, which are essential for confirming volume, inducing market movement, and executing trades.
• 🔑 The 'From zone to zone' rule is highlighted as a fundamental principle of the strategy, derived from the Smart Money Concept, guiding traders to understand the cause and effect of price movements.
• 🎯 'Trouble Area' and 'First Trouble Area' are defined as important concepts for identifying potential targets and entry points in the market based on the established logical elements.
• 🤝 The script simplifies the application of the strategy by dividing it into High Time Frame (HTF) and Low Time Frame (LTF) components, streamlining the process of identifying trading opportunities.
• 📚 Eight specific combos for entering a position are outlined, providing a structured approach to applying the logical elements in practical trading scenarios.
• 📉 Two common combos are analyzed in detail with real chart examples, demonstrating how to identify and act on trading opportunities using the Combo Algorithm strategy.

Q & A

What is the Combo Algorithm trading strategy discussed in the video?

The Combo Algorithm is a comprehensive trading strategy that involves the use of specific variables, logical elements, and timeframes to analyze market conditions and identify potential trading opportunities.

What are the four main variables used in the Combo Algorithm strategy?

The four main variables are Order Block, Rejection Block, Fair Value Gap, and Fractal Low or High. These are often referred to as Volume Tools or Inefficiencies and are used for market analysis and opening positions.

What is the role of the Order Block in the Combo Algorithm?

The Order Block is a price action element that has performed a liquidity raid or rebalanced a Fair Value Gap, breaking through resistance or support levels and closing with the body of the candle above or below, indicating a bullish or bearish sentiment.

Can you explain the Rejection Block in the context of the Combo Algorithm?

The Rejection Block is formed by two candles where the wicks have performed a liquidity raid or rebalanced the Fair Value Gap, forming a zone that can be either bullish or bearish depending on the candle formation.

How is the Fair Value Gap different from other volume tools in the Combo Algorithm?

The Fair Value Gap is a price action element formed by three candles where the maximum of the first candle does not cover the minimum of the third candle for a bullish scenario, and vice versa for a bearish scenario, indicating a significant price movement without overlap.

What functions can the variables in the Combo Algorithm perform?

Variables can perform Volume Confirmation, Inducement, Trigger, Execution or Entry into a position, and act as a Trouble Area. Each function is associated with specific variables, such as Order Block, Rejection Block, Fair Value Gap, and Fractal Point.

What are the timeframes used in the Combo Algorithm for intraday trading?

The timeframes used for intraday trading in the Combo Algorithm include 1 Week, 1 Day, 4 Hours, 1 Hour, 15 Minutes, 5 Minutes, and very rarely, 2 Minutes. These timeframes are arranged in a hierarchical order of importance.

How are logical elements in the Combo Algorithm categorized and what are their functions?

Logical elements are categorized into three groups based on their market function: Volume Confirmation, Liquidity Injection, and Execution. Each group contains specific logical elements that help in confirming market volume, inducing market movements, and executing trades.

What is the significance of the 'From zone to zone' rule in the Combo Algorithm?

The 'From zone to zone' rule is crucial as it is based on the Smart Money Concept, indicating that price moves from one zone of interest to another due to liquidity or inefficiency. This rule helps in identifying the Point of Interest and the Target in the market.

Can you provide an example of how the Combo Algorithm is applied in real market analysis?

An example would involve identifying a Volume Confirmation on a higher timeframe, such as a 1-day chart, and then looking for a corresponding confirmation on a lower timeframe, such as a 4-hour chart. Once the high-timeframe conditions are met, the trader would then look for a Trigger and Entry point on an even lower timeframe, such as a 15-minute chart, to execute the trade.

What is the importance of the Trouble Area and First Trouble Area in the Combo Algorithm?

The Trouble Area and First Trouble Area are important for determining the target and potential obstacles for the trade. The Trouble Area is on the same timeframe as the Point of Interest, while the First Trouble Area is associated with the Trigger, helping to identify potential resistance or support levels that could affect the trade.

Outlines

00:00

📈 Introduction to Combo Algorithm Trading Strategy

The video script introduces the Combo Algorithm, a trading strategy divided into five steps: Variables, Functions, and Timeframes; Logical Elements; Combo; An Important Rule about Trouble Areas; and Examples on Real Charts. The speaker emphasizes the importance of variables like Order Block, Rejection Block, Fair Value Gap, and Fractal High/Low in market analysis and position opening. Functions of these variables are explained, such as Volume Confirmation and Execution. The concept of Timeframes is introduced with a focus on Intraday Trading, using widely available intervals like 1 Week, 1 Day, and down to 2 Minutes. The script sets the stage for a detailed exploration of the trading strategy.

05:02

🔍 Understanding Logical Elements and Timeframes

This paragraph delves into the specifics of logical elements and their role in the Combo Algorithm. Six logical elements are identified, categorized into three groups based on their market function: Volume Confirmation, Liquidity Injection, and Execution. The paragraph explains the relationships between variables using symbols like 'greater than', 'less than', and 'equal to' to denote their positions in the timeframe system. The importance of understanding these elements for constructing entry methods in trading is highlighted, with an emphasis on how they confirm market volume and provide entry signals.

10:05

🤖 The Combo Process and High/Low Time Frame Analysis

The script outlines the Combo process, focusing on the High Time Frame (HTF) and Low Time Frame (LTF) variables used in intraday trading. It explains the analysis process, starting with HTF logical elements and then moving to LTF elements, with a clear rule that Inducement and Trigger cannot be combined. Eight possible combos for entering a position are presented, providing a structured approach to identifying trading opportunities. The paragraph also introduces the 'From zone to zone' rule, derived from the Smart Money Concept, which is central to understanding market movements and identifying Points of Interest and Targets.

15:09

🎯 Applying the Combo Strategy with Real Chart Examples

The final paragraph of the script provides practical examples of applying the Combo Algorithm using real chart scenarios. It demonstrates how to identify Volume Confirmation and Inducement on different timeframes, how to find triggers and entry points, and how to determine take profit levels based on Trouble Areas and First Trouble Areas. The examples illustrate the step-by-step process of analyzing market conditions, identifying logical elements, and executing trades based on the strategy's rules. The script concludes by inviting viewers to access more materials on the speaker's telegram channel and to engage with the content by subscribing, liking, and commenting.

Keywords

💡Combo Algorithm

The 'Combo Algorithm' is the trading strategy discussed in the video. It is a comprehensive method that involves a series of steps and considerations for analyzing market conditions and making trading decisions. The term is central to the video's theme as it is the main strategy being explained. The video breaks down the strategy into five steps, each with its own set of rules and examples.

💡Variables

In the context of the video, 'Variables' refer to the key elements or indicators used within the Combo Algorithm. These include Order Block, Rejection Block, Fair Value Gap, and Fractal High or Low. They are essential for market analysis and position opening, providing flexibility in dynamic market conditions. The script illustrates these variables schematically and explains their basic functions in the trading strategy.

💡Order Block

An 'Order Block' is a price action element that signifies a liquidity raid or a rebalance of a Fair Value Gap, followed by a break of resistance or support levels. It is a Volume Tool and plays a crucial role in the Combo Algorithm for volume confirmation. The video provides examples of how an Order Block is formed and its significance in identifying bullish or bearish market sentiments.

💡Rejection Block

A 'Rejection Block' is formed by two candles where the wicks indicate a liquidity raid or a rebalance of the Fair Value Gap. It is another Volume Tool used in the Combo Algorithm and helps in identifying market rejections of certain price levels. The video script describes how these blocks are formed and their importance in the trading strategy.

💡Fair Value Gap

The 'Fair Value Gap' is a price action element characterized by a gap between the maximum of the first candle and the minimum of the third candle in a bullish scenario, and vice versa for a bearish scenario. It is used to identify potential areas of strength in the market and is integral to the Combo Algorithm's analysis process. The script explains its formation and significance in the strategy.

💡Fractal

A 'Fractal' in the video refers to a recurring pattern found in market prices, often used to identify potential reversal points. Fractal Highs and Fractal Lows are used as points of reference in the Combo Algorithm, particularly for the Inducement and Trigger functions. The script mentions that most traders are familiar with these concepts, indicating their common use in technical analysis.

💡Timeframes

Timeframes are the different intervals used for analyzing market data in trading. The video mentions several timeframes ranging from 1 week down to 2 minutes, emphasizing their importance in the Combo Algorithm. Larger timeframes are considered more significant as they provide stronger variables. The script explains how these timeframes are used in a hierarchical manner, from top-down analysis.

💡Logical Elements

Logical Elements in the video are the combinations of variables that form the basis of the Combo Algorithm's decision-making process. The script outlines six distinct logical elements that categorize different market scenarios and conditions. These elements are essential for understanding how to apply the Combo Algorithm effectively.

💡Volume Confirmation

Volume Confirmation is a function performed by certain variables like Order Block, Rejection Block, and Fair Value Gap. It is used to validate the presence of significant trading volume in a particular area, which is crucial for confirming market movements. The video script describes how this function is used in the context of the Combo Algorithm to confirm market volume and validate trading decisions.

💡Inducement

In the video, 'Inducement' refers to a function performed by the Fractal Point, which can trigger a market reaction or movement. It is one of the basic functions of variables within the Combo Algorithm and is used to initiate a potential trade setup. The script explains how the Inducement function interacts with other variables in the logical elements of the strategy.

💡Trouble Area

The 'Trouble Area' is a concept in the video that refers to a zone of potential market interest that can affect the price movement. It is part of the 'From zone to zone' rule and is used to identify target areas for take profit in trades. The script explains the importance of the Trouble Area in the context of the Combo Algorithm and how it is identified based on the logical elements and timeframes.

Highlights

Introduction to the Combo Algorithm trading strategy, emphasizing its comprehensive nature and division into five key steps.

Explanation of the importance of variables in trading, drawing parallels with mathematics for flexibility in market analysis and position opening.

Identification of four key variables: Order Block, Rejection Block, Fair Value Gap, and Fractal High/Low, highlighting their roles as Volume Tools and liquidity indicators.

Description of the Order Block as a price action element signifying liquidity raid and rebalance of Fair Value Gap, with examples of bullish and bearish scenarios.

Introduction of the Rejection Block, formed by two candles indicating liquidity raid or Fair Value Gap rebalance, with simple examples of bullish and bearish formations.

Explanation of the Fair Value Gap as a price action element formed by three candles, emphasizing its significance in indicating strength after a liquidity raid or rebalance.

Clarification on the functions of variables, including Volume Confirmation, Inducement, Trigger, Execution, and the concept of Trouble Area, with their respective roles in trading strategy.

Importance of Timeframes in intraday trading, with a hierarchical arrangement from 1 Week down to 2 Minutes, and their impact on variable strength.

Introduction of logical elements and their symbols, setting the foundation for understanding variable positioning and relationships within the timeframe system.

Presentation of six logical elements divided into three groups, detailing their market functions and how they interrelate for trading decisions.

Elucidation of the 'From zone to zone' rule derived from the Smart Money Concept, explaining the cause and effect of price movements between zones of interest.

Identification of Trouble Area and First Trouble Area, crucial for determining market conditions and entry/exit points in trading strategies.

Description of the Combo process, simplifying the trading strategy into High Time Frame and Low Time Frame variables for practical application.

Illustration of eight possible combos for entering a position, providing a structured approach to trading based on the presence of logical elements.

Analysis of two most common combos, HTF 1 LTF 1 and HTF 2 LTF 1, with step-by-step examples on how to apply the Combo Algorithm in real trading scenarios.

Emphasis on the importance of risk-reward ratio in position entry, showcasing how to determine take profit levels based on market conditions.

Conclusion summarizing the video's content, encouraging viewers to subscribe, like, and comment for further engagement and support.

Transcripts

Hello everyone. This video is a comprehensive  guide about the trading strategy called the  

Combo Algorithm. I will try to explain  each aspect as clearly as possible,  

and for this reason, this video will  be divided into 5 important steps.

Step 1 - Variables, Functions, and Timeframes

Step 2 - Logical Elements

Step 3 - Combo

Step 4 - An Important Rule:  Trouble Area and First Trouble Area

Step 5 - Examples on Real Charts

Let's get started!

Step 1, The First Aspect - Variables

In trading, just like in mathematics,  

we can easily use certain variables that  can take unknown values within an idea.  

This allows us to be maximally flexible  in rapidly changing market conditions.

Thus, we have only 4 of the most  important variables that we use  

both in market analysis and in opening positions.

The first three are Order Block,  

Rejection Block, and Fair Value Gap. We also  call them Volume Tools, or Inefficiencies.

And the last one is Fractal Low or High,  which we often refer to as liquidity.

Throughout this video series, I will explain the  logic behind all these tools in detail, but for  

now, let's just illustrate schematically what  they look like and their basic characteristics.

Order Block is a price action element  that has performed a liquidity raid  

or rebalanced a Fair Value Gap. After  that, it breaks through resistance or  

support levels and closes with the  body of the candle above or below.

Here you can observe the break through a  resistance level, the buy plus sell candles,  

and the close with the body higher, which  forms the zone of a bullish Order Block.

And the break through a support  level, the sell plus buy candles,  

and the close with the body lower,  forming a bearish Order Block.

The next price action element  is the Rejection Block,  

which is formed by 2 candles where the  wicks of the candles have performed a  

liquidity raid or rebalanced the Fair Value  Gap, forming the zone of the Rejection Block.

Sell plus Buy candles form  a bullish Rejection Block,  

and Buy plus Sell candles form a bearish  Rejection Block. It's very simple.

It is not mandatory for an order block or  rejection block to perform a liquidity raid  

or fair value gap rebalance, but this is a  very important condition for their strength.

The last in the category of volume tools is  the Fair Value Gap. It is also a price action  

element formed by three candles where  the maximum of the first candle does  

not cover the minimum of the third candle  for a bullish scenario, and the minimum of  

the first candle does not cover the maximum  of the third candle for a bearish scenario.

The Fair Value Gap does not always form  after a liquidity raid or rebalancing of  

a fair value gap, but this is a  good indicator of its strength.

As for fractal highs and fractal lows, I  believe everyone is familiar with them,  

so there's no need to explain something.

The second aspect is - Functions of the Variables.

Generally, the variables can have only  a few basic functions, and these are:

- The Volume Confirmation function  can only be performed by Order Block,  

Rejection Block, and Fair Value Gap. - The Inducement function can only  

be performed by Fractal Point. - The Trigger function can be  

performed by Fair Value Gap or Fractal Point. - Execution or Entry into a position can be  

performed by Order Block or Fair Value Gap. - And as a Trouble Area, it can be a  

Fractal Point or a Fair Value Gap.

Now, this might seem hard to understand  because it's difficult to remember all  

these elements, but as we go along,  everything will become much easier.

The third aspect is - Timeframes.

Here, everything is very simple. In  accordance with Intraday Trading,  

we use the most popular and widely available  timeframes for everyone. These are 1 Week,  

1 Day, 4 Hours, 1 Hour, 15 Minutes, 5  Minutes, and very rarely, 2 Minutes.

All these time intervals can be arranged in an  order that resembles a staircase. Naturally,  

the larger the timeframe, the more important it  is for us because it provides stronger variables.  

Every time we start analyzing the chart, we begin  from the top down. According to logic, each stage  

should provide a variable that we can synchronize  with one of our ideas. If a stage does not provide  

any information, then there is a gap, and we do  not proceed further but wait for new variables.

Step 2 - Logical Elements

But before we move on to the logical elements,  

we need to determine and understand a  few symbols that we will use throughout.

The symbol V will always mean the word Variable.

For example, V1 is Order Block,  V2 is Fair Value Gap, and so on.

The symbols equal, greater than, and less  than are used to determine the position  

of one variable relative to another  variable in our timeframe system.

Greater than indicates that a  variable is positioned one step  

higher than another variable  in our timeframe system.

For example, V1 greater than V2. If V1  is positioned on the 4-hour timeframe,  

then V2 logically should be  positioned on the 1-hour timeframe.

Less than means that a variable  is positioned one step lower than  

another variable in the timeframe system.

Equal means that a variable is positioned  on the same step as another variable.

We will also sometimes use the symbol greater than  or equal to for some elements or combinations.

Now that we understand this, let's  move on to the logical elements.

Using only 4 variables, I have managed  to determine just 6 logical elements,  

which I have divided into 3 groups  according to their function in the market.

Logical Element Number One

V1 Inducement greater than  V2 Volume Confirmation**

This means that if we have a Fractal Point and  the price performs a liquidity raid, then forms  

an Order Block, Rejection Block, or Fair Value  Gap on a lower step in our timeframe system,  

this logical element confirms the volume in the  market. For example, if the inducement is on the  

4-hour timeframe, then logically, the volume  confirmation will be on the 1-hour timeframe.

Logical Element Number Two

V1 Volume Confirmation** greater  than V2 Volume Confirmation**

Here, the first variable forms an  area of Order Block, Rejection Block,  

or Fair Value Gap, then the price tests this  area and forms another area of Order Block,  

Rejection Block, or Fair Value Gap on a lower  step in our timeframe system. For example,  

a 1-day Volume Confirmation and a 4-hour Volume  Confirmation. As in the previous example,  

this logical element confirms  the volume in the market.

These are the logical elements  in the Volume Confirmation group.

Logical Element Number Three

V1 Volume Confirmation greater than V2 Inducement

Here, the first variable should be  an Order Block, Rejection Block,  

or Fair Value Gap, and the second variable,  on a lower step in our timeframe system,  

can only be a Fractal Point. It should be  inside or near the first variable. There  

are two methods this can happen. The first  is that variable two forms at the same time  

as variable one. The second method is that  variable two forms after testing variable one.

For example, a 1-hour Volume  Confirmation and a 15-minute Inducement.

Logical Element Number Four

V1 Volume Confirmation greater than V2 Trigger

The logic here is the same as in the previous  example, except that the second variable,  

the trigger, can be either a Fractal Point  or a Fair Value Gap. If the Fractal Point is  

clear from the previous example, then there are a  few interesting details with the Fair Value Gap.

A Fair Value Gap can only form at the  same time as the first variable. In  

other words, the trigger must form  within the Volume Confirmation.

Another peculiarity is that the Trigger in  the form of a Fair Value Gap cannot form  

within a Volume Confirmation that is also a  Fair Value Gap. I hope the logic is clear.

For example, a 4-hour Volume  Confirmation and a 1-hour Trigger.

These are the logical elements  in the Liquidity Injection group.

Now, the last two logical elements  in the Execution group remain.

Logical Element Number Five

V1 Trigger greater than V2 Entry

Here, the first variable can be either  a Fractal Point, which we also call IDM,  

or a Fair Value Gap, and the second  variable, depending on the trigger,  

must perform either a liquidity raid or  rebalance the FVG on a lower step in the  

timeframe system. After that, it should  confirm the volume through two methods:  

either Order Block or Fair Value Gap, from  which we can enter a position. We do not use the  

Rejection Block because it forms quite often on  smaller timeframes and can be easily invalidated.

Again, as an example, a 1-hour  Trigger and a 15-minute Entry.

Logical Element Number Six

V1 Volume Confirmation greater than V2 Entry

The same logic as in the previous example,  except that the first variable is one of the  

volume tools we use: Order Block, Rejection Block,  or Fair Value Gap. The second variable tests the  

first and forms another volume confirmation  in the form of an order block or fair value  

gap on a lower step in the timeframe system,  from which we can again enter a position.

For example, a 15-minute volume  confirmation and a 5-minute Entry.

It is important to understand that our entire  strategy is built from these logical elements.  

Using these elements, you can construct  your own methods for entering positions;  

it all depends on how you combine and use them.

Now we move on to step number 3,  where everything is already ready,  

and you just need to use in  practice everything I present here.

Step 3 - Combo

To simplify, I've divided the entire  process into two very important parts.

The first part is the High Time Frame (HTF),  

where there are always just 2 variables.  For intraday trading, these variables are  

most commonly found on timeframes like 1  day and 4 hours, or 4 hours and 1 hour.

The second part is the Low Time Frame (LTF), where  there can be either 2 or 3 variables. Similarly,  

for intraday trading, these variables are  often found on timeframes like 1 hour,  

15 minutes, and 5 minutes, very rarely 2 minutes.

Every time we analyze the market,  

we first focus on the High Time Frame  logical elements, which are only 3:

1. V1 Volume Confirmation greater  than V2 Volume Confirmation 

2. V1 Inducement greater  than V2 Volume Confirmation 

3. V1 Volume Confirmation  greater than V2 Inducement

If we do not find any of these logical elements,  we simply do not proceed further. We may not even  

look at smaller timeframes. All we need  to do in such cases is wait. Because the  

market rewards us when we wait for the right  setup, rather than entering random positions.

In the case where we already  have a logical element on HTF,  

we can then wait for LTF logical  elements, which again are only 3:

1. V3 Trigger greater than V4 Entry. 2. A combination of logical elements:  

V3 Volume Confirmation greater than  V4 Trigger greater than V5 Entry. 

3. V3 Volume Confirmation greater than V4 Entry.

Here, an important rule is that Inducement  and Trigger cannot be combined. In total,  

we can receive only 8 combos to enter  a position. Let's see what they are.

First combo: HTF 1 LTF 1. This is one of the  simplest and most widespread combinations.

Second combo: HTF 1 LTF 2. We look for this when  

we do not receive the first combo,  meaning we do not find the trigger  

and need to receive Volume Confirmation  again to confirm the volume in the market.

Third combo: HTF 1 LTF 3. We look for  this again when we do not receive the  

trigger in the second combo, requiring us  to receive volume confirmation once more,  

but only from the order block or fair value  gap from where we can enter a position.

Fourth combo: HTF 2 LTF 1. This is  also one of the most widespread combos.

Fifth combo: HTF 2 LTF 2. We need to receive  this when we do not find the trigger in LTF 1.

Sixth combo: HTF 2 LTF 3. We receive this  when we do not find the trigger in LTF 2.

The next two combos are more interesting because  

here we apply the rule that inducement  cannot be combined with the trigger.

Seventh combo: HTF 3 LTF 2.

Eighth combo: We look for this when  we again do not receive the trigger  

on LTF 2. Everything is as simple as possible.

That’s all we need. But before moving on  to real-life examples from the charts,  

we need to quickly clarify a very important rule  

in the market and what Trouble Area  and First Trouble Area mean to us.

Step 4 - An Important Rule,  Trouble Area and First Trouble Area

The "From zone to zone" rule is  one of the most important in the  

entire strategy. Its origin comes from the  basic tenets of the Smart Money Concept:

"From liquidity to inefficiency and  from inefficiency to liquidity."

This means that price always moves from one  zone of interest to another due to liquidity  

or inefficiency, which provided buying or selling  volume in the market. However, it's crucial that  

all these zones are located on the same time  intervals for them to function correctly. Thus,  

every move has a cause and effect, or more  precisely, a Point of Interest and a Target.

This can be illustrated schematically as follows:

For example, we have Zone 1 on the 4-hour  timeframe, which could be inefficiency or  

liquidity. In the context of testing and reaction  from this zone, the price will likely reach Zone  

2, also on the 4-hour timeframe, in the form of  liquidity or inefficiency. I hope this is clear.

Following this logic, you can always identify  

the Trouble Area and First Trouble  Area depending on the combo we have.

- Trouble Area will always be on the  same timeframe as our Point of Interest,  

which is Variable 2 from the HTF combo. - First Trouble Area will always be  

equal to the Trigger, which for  us most often is Variable 3.

Always remember these formulas to  correctly identify market conditions.  

You will understand this principle better  when we analyze real situations on charts.

Step 5 - Two combos that form most often.

Since this video is more focused on the  theoretical part and to avoid making it  

too long, let's consider just the 2  combos that form most often. We will  

analyze the remaining variations  in more depth in other videos.

First Example: HTF 1 LTF 1 ****

The first thing we need to receive is V1 volume  confirmation greater than V2 volume confirmation.

On the 1-day chart, the price  forms a bullish Order Block zone,  

which can be considered variable 1.

Now, to receive variable 2, we need to wait for a  test and volume confirmation on the 4-hour chart.

We switch to the 4-hour chart and see that  the price forms a bullish Fair Value Gap,  

which can be considered variable 2.

Now all the conditions on the HTF stage are  met, and we can move to the second stage, LTF.

V3 Trigger greater than V4 Entry

On the 1-hour chart, the price has  already formed a trigger or what  

can be called Inducement, which  we can consider as variable 3.

The last thing we need to do is determine  the entry point. In other words,  

volume confirmation in the form of  an order block or fair value gap.

We switch to the 15-minute chart and see that  the price performs a raid on the trigger and then  

forms an Order Block zone, which can be considered  variable 4 from which we can enter the position.

But a very important aspect is the  trouble area or target where we  

will place the take profit. Remember that  the target equals the Point of Interest,  

thus variable 5 will be the closest fractal  or fair value gap on the 4-hour chart.

In our case, this is the fractal  high. If the risk-reward ratio  

is acceptable for us, we can enter the position.

Here we have 1.75, which is not suitable  for us. In this case, by risking more,  

we can place the take profit at the next  fractal and get 3.28. We can enter the position.

In this situation, on the 1-hour  chart, equivalent to our trigger,  

we did not have a First Trouble Area, which is  most often a fractal point or Fair Value Gap,  

allowing the price to be delivered very quickly.

Second Example: HTF 2 LTF 1

Again, the first thing we need to receive is V1  Inducement greater than V2 Volume Confirmation.

On the 4-hour chart, we have equal lows,  which can be considered variable 1.

Now we switch to the 1-hour chart and see that the  price makes a liquidity raid on these fractals and  

then confirms the volume by forming a Fair Value  Gap. All conditions on the HTF stage are met.

Now the LTF stage remains, V3  Trigger greater than V4 Entry.

On the 15-minute chart, the trigger is formed,  

which will be considered variable 3. We  need to wait for a test of the Fair Value  

Gap on the 1-hour chart and at the same time  a raid on the trigger on the 15-minute chart.

On the 5-minute chart, the price does  this and forms volume confirmation in  

the form of a fair value gap, which  is variable 4. From which we can  

freely enter the position if the trouble  area is at a convenient distance for us.

In this case, the trouble area is the  fractal high on the 1-hour chart, so we get  

a risk-reward ratio of 2.68, which is convenient  for us. The position is closed at take profit.

Here we can see if we look at the 15-minute chart  that the First Trouble Area was in the form of a  

bearish order block, which acted as a stimulus for  the price to test the entry level of our position.

Part of all the materials in this video  are posted in my telegram channel,  

you can find the link in the description.

I hope this video was informative and useful for  you. Don’t forget to subscribe to the channel,  

like the video, and leave  a comment. See you later.