@I_Am_Emisky: My Trading Model and Rationale...

My Trading Model and Rationale "SLK"
Part 1🧵

SLK - means structure, liquidity and key levels.

What is structure?
Structure tells us the direction of market. We have Bullish, Bearish and Ranging structure.

Bullish structure Also know as  uptrend,  is characterised with the continuous creation of higher highs and higher lows. This creation leads to continuous break of structure (BOS) to the upside.

Bearish structure Also known as downtrend, is characterised with the continuous creation of lower hi g s and Lower lows. This creation leads to continuous BOS to the downside.

Ranging market Also known as consolidation. In this case there is no direction of price rather price moves randomly in an unspecified direction.
In most scenarios Ranging market signals the transitioning of either uptrend to downtrend or the other way round

Now what is liquidity?

Liquidity can be seen as money in the market. In other words, it is where money resides in the market and can be in form of highs and lows of the market depending on the structure.
There are various forms of liquidity which include;

Structural liquidity (inducement) - Here the high after the poi/ main high breaks structure. That is the pullback after the first BOS breaks another structure
Engineered liquidity - Here the high after the main high does not BOS.
The pullback does not break structure

Also previous candles of weekly, daily, 4hr, or 1hr candles can also act as liquidity depending on your market approach.

Finally what is Keylevel?
This are specific levels in the market where we expect a reaction of price.
We have basically three types of keylevels,  which include;

A shaped keylevels used for sells

V haped Key levels for buys

Now let's look at how to spot A and V shaped key levels.
•The best way to set them is by using your line chart
•For higher probability, go with the ones closest to liquidity

Here are previous price actions on enteries using A and V shaped keylevels for both buys and sells

Openclose Keylevels, which consists of ;
• Bullish openclose - we buy from it
• Bearish openclose - we sell from it

Here are previous price action on enteries using openclose (Bullish and Bearish) Keylevels for both buys and sells

On some other cases an A shaped KL that was supposed to be used for sells if disrespected can be used for buys and also a V shaped KL that is supposed to be used for buys if disrespected,  can be used for sells.

Here are some examples
Frame 1 : failed A shaped keylevel
Frame 2 : failed V shaped keylevel

Same applies to both bullish and bearish open close key levels

Here are some examples

Everything clear right?

Now the question is, "How do I approach the market with all this information "
Here we go.!
Let me dazzle you a bit.

My bias is framed in 2 ways,
• Sweep of Lows or highs of monthly, weekly, Daily,  4hr/1hr candles.
• Rejection of monthly, weekly, daily, 4hr and 1hr keylevels.
Ps: I don't just focus on the sweep/rejection that happens, I also focus on my confirmation after the rejection.

Using the weekly Time frame for context.

Rejection of weekly KL, I move to one TF lower to get my confirmation which should be a sweep and break, breakout or engulfing of either a Bearish or Bullish open close depending on the structure.

Same step is applicable using sweep of previous low or high

For context, here is how I flow from all TF.

Monthly - Weekly - Daily - 4hr - 1hr - 15mins.