Hey There!
We’re not here to talk about your average, run-of-the-mill strategies. No, we’re diving headfirst into the heart-pounding realm of Inversion, Balanced Price Range, and Reclaimed FVG. Buckle up, dear traders, because we’re about to unlock the strategies to trading success that even the market doesn’t want you to know.
Inversion, Balanced Price Range, and Reclaimed FVG: Unveiling the Distinctions
First things first, it’s essential to recognize that Inversion, Balanced Price Range (BPR), and Reclaimed FVG are distinct concepts, each with its unique characteristics.
Balanced Price Range (BPR): This concept pertains to a scenario where prices are efficiently delivered to both the buy and sell sides of the market. It’s like a perfectly balanced scale where supply and demand find harmony.
Reclaimed FVG (Forgotten Value Gap): Reclaimed FVGs are old gaps in price charts that present opportunities for multiple re-accumulations. They are said treasures hidden in plain sight, waiting to be rediscovered.
Inversion: Inversion, in the context of trading, is about transforming a buy-side imbalance or sell-side inefficiency into its opposite. It’s akin to flipping a coin and finding an entirely new set of possibilities. The same principle applies to the concept of a “breaker.”
Now that we have a clear understanding of these concepts, let’s explore three advanced entry models that leverage these ideas to navigate the markets successfully.
MODEL 1 – Inversion + Breaker: The Art of Market Transformation
The Inversion + Breaker model is a powerful tool in the trader’s arsenal. It’s about recognizing the potential for market transformation and seizing it at the right moment. Here’s a checklist to guide you when this model forms:
HTF PD Array Traded To: Start by analyzing the higher time frame (HTF) price distribution array. This will provide valuable insights into the broader market dynamics.
STH or STL Taken: Identify significant highs (STH) or significant lows (STL) that have been established. These points can serve as crucial reference points.
BISI as SIBI – SIBI as BISI: In this model, you’ll convert Buy-Side Imbalance (BISI) into Sell-Side Imbalance (SIBI) or vice versa. This transformation is at the core of the inversion concept.
Entry Point: Enter your trade position only above equilibrium when bearish and below when bullish. This aligns your strategy with the market sentiment.
Risk-Reward Ratio: Maintain a disciplined approach with a 1:2 risk-reward ratio. This ensures that your potential gains outweigh your losses.
The Inversion + Breaker model capitalizes on the idea that market imbalances can be turned to your advantage with the right strategy. It requires patience and precision but can yield significant rewards.
MODEL 2 – Reclaimed FVG with Order Block: Uncovering Hidden Opportunities
Our second model combines the concept of Reclaimed FVGs with the Order Block strategy. This model is all about identifying hidden opportunities in the market. Here’s your checklist for this approach:
HTF PD Array Traded To or Imbalance Rebalanced: Begin by analyzing the higher time frame (HTF) price distribution array or observe when an imbalance is rebalanced.
Failure Swing (SMT): Look for a failure swing, often manifesting as a Shakeout (SMT). This signals a potential change in market sentiment.
STL or STH Stays Intact: Ensure that the significant low (STL) or significant high (STH) remains in place. These are critical reference points.
Return to Equilibrium: Wait for the market to return to equilibrium, indicating a degree of stability.
Risk-Reward Ratio: Maintain a disciplined approach with a 1:2 risk-reward ratio. This ensures that your potential gains outweigh your losses.
This model hinges on the idea that forgotten value gaps can be revisited multiple times for position accumulation. It’s a strategy that combines patience with precise timing and offers a compelling risk-reward profile.
MODEL 3 – Optimal Trade Entry & BPR: Precision in Practice
Our third model combines Optimal Trade Entry (OTE) with the Balanced Price Range (BPR) concept. This approach is all about precision in practice. Here’s your checklist for this model:
HTF PD Array Traded To or Imbalance Rebalanced: Start by analyzing the higher time frame (HTF) price distribution array or observe when an imbalance is rebalanced.
Failure Swing (SMT): Look for a failure swing, often in the form of a Shakeout (SMT). This signals a potential shift in market dynamics.
STL or STH Traded Through: Ensure that the significant low (STL) or significant high (STH) is breached. This indicates a change in market sentiment.
FVG Balanced Price Range: Wait for the Balanced Price Range (BPR) to be fully closed in. This confirms that price has found equilibrium.
Return to Equilibrium or OTE: Enter your trade position at the Optimal Trade Entry (OTE) point or when conditions favor the first distribution entry. This ensures that your entry is strategic.
Risk-Reward Ratio: Maintain a disciplined approach with a 1:2 risk-reward ratio. This enhances your risk management strategy.
This model combines the precision of OTE with the strategic use of BPR. It’s about identifying the perfect entry point when the market presents an opportunity. With a risk-reward ratio of 1:2, it offers an attractive risk profile for traders who appreciate the nuance of timing.
So, as you navigate these intricate entry models – Inversion, Balanced Price Range, and Reclaimed FVG – keep in mind that these models offer you a unique toolkit. They provide you with the canvas, but it’s you who must paint the masterpiece. Remember, we’re not here to give financial advice; we’re here to elevate your trading game.
Source: DayTradingRauf
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Disclaimer: Trading involves significant risk, and it’s possible to lose more than your initial investment. This blog is for educational purposes only and should not be considered as financial advice. Always do your research and consult with a qualified financial advisor before making any trading decisions.
