Finding Trade Setup using MTF with example of NIFTY 19-09-2024
Updated
Here we will lean how to find trade setups, with help of Market structure and MTF.
Follow your direction, be patient and don't fall far retracements. Pick any 3TF and stick to that.
Let's see:
NIFTY 19-09-2024
TIME FRAMES IN PLAY : D1 (Direction) /H2 (Control) / M30 (Entry)
1) We see Daily Break out. Confirm with Line chart closing price and then switch to candle stick.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
How do we know it is Daily level, we drop time frame H2 (for Stocks).we see multiple H2 structures nested which gives us an idea that it is a Daily level. You can do same to identify you HTF level.
TradingView didn't allow me to add as I am a free member but you find the markings in the
chart.
2) Wee need to wait for Retracement/ Pull back. A valid pullback is from same TF small breakout of 1TF lower proper structure break. We drop to H2. And what do we see
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
We see H2 Direction or Structure is still in tact.
Break and close below in H2 external, will tell us retracement to Daily has started.
3) So what can we do? We follow H2 as our direction. M30 as Control and M5 as Entry (same 3 TF) (H2/M30/M5). Until H2 Breaks.
Take a look at M30.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
4) What is the use of Control time frame. It helps us giving confidence that price will continue to it’s direction now.
Where price is at HTF key level (see my Market structure link to know key level. Where the market structure shift happened.), we switch 1 TF low and wait for structure break and then we look for entry . Some time later I will explain you the entries. Right now just focus on How it happens in MTF Market is Fractal, this is the true meaning.
5) Now price is a M30 Key level , because H2 is our direction as of now. Let drop to M5 to see.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
M5 retraced back to after making structure and M30. Here we found entry setup.
Now SL is your invalidation point. Where you entry timeframe breaks structure. Measure you Entry to SL point having some buffer and plan you position sizing.
You will get many entries in one structure. Middle TF.
If doing intraday need to be very strict with SL. For swing once you master this you can ride the trend.
TP (take profit). Need to know that we have taken tade on middle TF (M30 in this case) so first we target the HTF high (H2 in this case), wait for it to break by H2 TF. If not that is our TP. Close.
How do we know if it breaks or not. Same thing we follow middle TF (M30) , if it breaks low of M30 at H2 High, then it is indicating, it can not go further.
Hope you will make this a practice. We will win to gather.
Happy trading.!!
Follow your direction, be patient and don't fall far retracements. Pick any 3TF and stick to that.
Let's see:
NIFTY 19-09-2024
TIME FRAMES IN PLAY : D1 (Direction) /H2 (Control) / M30 (Entry)
1) We see Daily Break out. Confirm with Line chart closing price and then switch to candle stick.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
How do we know it is Daily level, we drop time frame H2 (for Stocks).we see multiple H2 structures nested which gives us an idea that it is a Daily level. You can do same to identify you HTF level.
TradingView didn't allow me to add as I am a free member but you find the markings in the
chart.
2) Wee need to wait for Retracement/ Pull back. A valid pullback is from same TF small breakout of 1TF lower proper structure break. We drop to H2. And what do we see
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
We see H2 Direction or Structure is still in tact.
Break and close below in H2 external, will tell us retracement to Daily has started.
3) So what can we do? We follow H2 as our direction. M30 as Control and M5 as Entry (same 3 TF) (H2/M30/M5). Until H2 Breaks.
Take a look at M30.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
4) What is the use of Control time frame. It helps us giving confidence that price will continue to it’s direction now.
Where price is at HTF key level (see my Market structure link to know key level. Where the market structure shift happened.), we switch 1 TF low and wait for structure break and then we look for entry . Some time later I will explain you the entries. Right now just focus on How it happens in MTF Market is Fractal, this is the true meaning.
5) Now price is a M30 Key level , because H2 is our direction as of now. Let drop to M5 to see.
TradingView didn't allow me to add as I am a free member but you find the markings in the chart.
M5 retraced back to after making structure and M30. Here we found entry setup.
Now SL is your invalidation point. Where you entry timeframe breaks structure. Measure you Entry to SL point having some buffer and plan you position sizing.
You will get many entries in one structure. Middle TF.
If doing intraday need to be very strict with SL. For swing once you master this you can ride the trend.
TP (take profit). Need to know that we have taken tade on middle TF (M30 in this case) so first we target the HTF high (H2 in this case), wait for it to break by H2 TF. If not that is our TP. Close.
How do we know if it breaks or not. Same thing we follow middle TF (M30) , if it breaks low of M30 at H2 High, then it is indicating, it can not go further.
Hope you will make this a practice. We will win to gather.
Happy trading.!!
Note
In H2 Direction, We need to wait for M30 new Break out first. Don't find existing level and try to trade. Those are high risk.
once we have M30 Breakout, We need to M5 Breakout for entry.
Note
It is more about waiting and being patient. Keep Calm and just wait. the trade to unfold for you. Keep the itching of hands away. Do some medidation. I will post one here on programming subconscious mind.Note
Summary SOP (buy example):
1) Identify HTF (1st TF) Break UP
2) Wait for Pullback ( 2ndTF) meanin break DOWN after 1stTF Break UP :).
3) Identify Key levels in 2nd TF within 1st TF stucture. SBR or RBS levels. The quality ones are below 50% range for buy above 50% for sell. Range from stucture High to Low.
4) when Price comes wait for 2ndTF( Break UP) again. structure break or internal break.
5) wait for retracement of 2tf (same steps above).
6) wait for 3rd tf break up for entry. buy direction. :)
Once you master this, you can take retracement trade. It is best follow direction of trend and current market price fresh ones.
If you already things ready with above, just take trade don't need to wait. we just need to understand the flow and Fractal nature of market.
Trade closed: target reached
reached target in H2 direction.
Now we will play this structure price is retraced.
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