Wyckoff Trading Framework
Step-by-Step Execution Guide
PHASE 1: Higher Timeframe Context (Daily / 4H)
Goal: Determine the dominant trend and potential reversal zones
WHY THIS MATTERS: Before looking for any trade, you MUST know the bigger picture. Trading with the higher timeframe trend dramatically increases your win rate. A Spring in an uptrend is much more reliable than a Spring in a downtrend.
STEP 1A: Price Action Structure
| Check | What to Look For | How to Identify |
|---|---|---|
| ☐ | Uptrend | Higher highs AND higher lows — each peak is higher than the last |
| ☐ | Downtrend | Lower highs AND lower lows — each peak and valley is lower |
| ☐ | Ranging | Price bouncing between two horizontal levels, no clear direction |
HOW TO DO IT:
- Zoom out on your Daily or 4H chart
- Draw lines connecting the major swing highs
- Draw lines connecting the major swing lows
- Are these lines going UP, DOWN, or SIDEWAYS?
UPTREND: DOWNTREND: RANGING:
/\ /\ \ ────────── Resistance
/ \ / \ / \ /\ /\
/ \/ \/ \/ \ /\ /\ / \ /\
/ \/ \ / \/ V \
\ ────────────── Support
STEP 1B: EMA Analysis (Exponential Moving Average)
| EMA | What It Shows | What to Check |
|---|---|---|
| EMA 200 | Long-term trend direction | Is price above or below? Is it sloping up or down? |
| EMA 50 | Medium-term momentum | Is it above or below EMA 200? Is it curving? |
| EMA 21 | Short-term direction | Useful for trailing stops later |
EMA CONFIGURATIONS:
| Configuration | Meaning | Your Bias |
|---|---|---|
| Price > EMA 50 > EMA 200 (all sloping UP) | Strong uptrend | LONG only |
| Price < EMA 50 < EMA 200 (all sloping DOWN) | Strong downtrend | SHORT only |
| EMA 50 crossing ABOVE EMA 200 | Golden Cross — bullish reversal | Prepare for LONGS |
| EMA 50 crossing BELOW EMA 200 | Death Cross — bearish reversal | Prepare for SHORTS |
| EMAs flat, price chopping through | No clear trend | WAIT or range trade |
WHY EMAs MATTER:
- They act as dynamic support/resistance (price often bounces off them)
- They show you what the "average" trader paid over time
- Institutions watch the 200 EMA closely
STEP 1C: Volume Profile (VPVR) Analysis
WHAT IS VOLUME PROFILE? Unlike regular volume (which shows volume per TIME), Volume Profile shows volume per PRICE. This tells you WHERE the most trading happened, not just WHEN.
| Term | What It Means | How It Acts |
|---|---|---|
| POC (Point of Control) | Price level with THE MOST volume traded | Strong magnet — price gets pulled back to it |
| HVN (High Volume Node) | Areas with lots of trading (thick bars) | Price moves SLOWLY here, acts as support/resistance |
| LVN (Low Volume Node) | Areas with little trading (thin/gaps) | Price moves FAST through these zones |
| Value Area | Zone containing 70% of volume | "Fair value" — price spends most time here |
HOW TO USE IT:
- Add "Volume Profile Visible Range" or "Fixed Range" to your chart
- Note where the POC is — this is a KEY level
- Identify HVN zones — these are potential support/resistance
- Identify LVN zones — expect fast moves through these
VOLUME PROFILE EXAMPLE:
Price │ Volume
──────┼────────────────────────
95k │ ██ ← LVN (price will move fast here)
94k │ ████
93k │ ████████████████████ ← HVN (strong resistance)
92k │ ██████████████████████████← POC (strongest level)
91k │ ████████████████ ← HVN (strong support)
90k │ ████
89k │ ██ ← LVN (price will move fast here)
STEP 1D: LuxAlgo Smart Money Concepts (SMC)
WHAT TO LOOK FOR ON HIGHER TIMEFRAMES:
| Element | What It Shows | How to Use It |
|---|---|---|
| Order Blocks (OB) | Zones where institutions placed large orders | Expect price to react when revisiting |
| Liquidity Pools | Clusters of stop losses (blue lines) | Price often sweeps these before reversing |
| Break of Structure (BOS) | Trend continuation confirmed | Trade in direction of BOS |
| Change of Character (CHoCH) | Potential trend reversal | Be alert for new setups |
READING LUXALGO ON HTF:
- Cyan/Blue boxes = Bullish Order Blocks (demand zones — expect bounces)
- Pink/Red boxes = Bearish Order Blocks (supply zones — expect rejections)
- Blue horizontal lines = Liquidity pools (stop loss clusters)
PHASE 1 DECISION MATRIX
After checking all the above, use this to decide your bias:
| If You See... | Your Bias Should Be... | Look For... |
|---|---|---|
| Price > EMAs, EMAs sloping up, bullish BOS | BULLISH | Accumulation → Spring → Long |
| Price < EMAs, EMAs sloping down, bearish BOS | BEARISH | Distribution → UTAD → Short |
| Price choppy around flat EMAs, no clear BOS | NEUTRAL | Wait for clarity OR trade range edges |
| Price below EMAs but CHoCH appeared | CAUTIOUSLY BULLISH | Look for accumulation forming |
| Price above EMAs but CHoCH appeared | CAUTIOUSLY BEARISH | Look for distribution forming |
PHASE 1 CHECKLIST (Complete Before Moving to Phase 2)
☐ Identified trend direction (up/down/ranging)
☐ Noted price position relative to EMA 50 and EMA 200
☐ Checked if Golden Cross or Death Cross is forming/formed
☐ Identified POC and major HVN/LVN zones on Volume Profile
☐ Marked major Order Blocks and Liquidity levels from LuxAlgo
☐ Made a BIAS DECISION: Long / Short / Wait
PHASE 2: Identify the Trading Range (1H / 4H)
Goal: Spot accumulation or distribution forming
WHY THIS MATTERS: The Wyckoff range is where institutions BUILD their positions before a big move. They can't buy/sell all at once (it would move the market against them), so they accumulate (buy) or distribute (sell) over time within a range.
UNDERSTANDING THE WYCKOFF CYCLE
The market moves in a cycle:
MARKUP DISTRIBUTION
(Trending Up) (Institutions Selling)
↑ │
│ │
│ ▼
ACCUMULATION ◄───────────────────── MARKDOWN
(Institutions Buying) (Trending Down)
YOUR JOB: Identify when ACCUMULATION or DISTRIBUTION is happening, so you can enter BEFORE the markup/markdown begins.
ACCUMULATION EVENTS EXPLAINED (After a Downtrend)
This is where institutions are secretly BUYING before price goes up.
EVENT 1: PS (Preliminary Support)
| What It Is | First sign that buyers are stepping in during a downtrend |
|---|---|
| What It Looks Like | Price drops, then bounces — but the downtrend continues after |
| Volume | Increasing — buyers are starting to show up |
| Your Action | Just observe — don't trade yet, it's too early |
│
│ ╲
│ ╲
│ ╲___/ ← PS: First bounce, but it fails
│ ╲
│ ╲ (downtrend continues)
EVENT 2: SC (Selling Climax)
| What It Is | The PANIC LOW — where everyone gives up and sells in fear |
|---|---|
| What It Looks Like | Sharp drop, big red candles, long wicks, then sudden bounce |
| Volume | HUGE SPIKE — this is capitulation, retail panic selling |
| Your Action | Mark this level! This is the BOTTOM of your range |
│
│ ╲
│ ╲
│ ╲
│ ╲
│ ╲____
│ │██│ ← SC: Capitulation candle, high volume
│ │██│ Long wick = buyers absorbing
│ └──┘
WHY SC HAPPENS:
- Retail traders panic and sell at the worst price
- Institutions are on the OTHER SIDE, buying everything retail sells
- This is why "smart money" needs "dumb money" — to fill their orders
EVENT 3: AR (Automatic Rally)
| What It Is | The bounce that happens naturally after the Selling Climax |
|---|---|
| What It Looks Like | Quick rally upward after the SC, then stalls |
| Volume | Moderate to decreasing — just natural reaction, no new selling |
| Your Action | Mark this level! This is the TOP of your range |
AR ← Mark this as RANGE HIGH
╱│
╱ │
╱ │
SC ╱ │ (range is now defined)
│ │
└──────┘
EVENT 4: ST (Secondary Test)
| What It Is | Price comes back down to TEST if the SC low will hold |
|---|---|
| What It Looks Like | Price drops toward SC level, but doesn't break it (usually) |
| Volume | LOWER than SC — if volume is high, it's not a good ST |
| Your Action | Confirm that selling pressure is decreasing |
AR ━━━━━━━━━━━━━━━━━━━━━━━ Range High
│
│ ╱╲ ← ST: Retest of SC area
│ ╱ ╲ on LOWER volume = good
│ ╱ ╲
SC ━━━━━━━━━━━━━━━━━━━━━━━ Range Low
WHY ST MATTERS:
- It proves buyers are in control (they defended the low)
- Lower volume = sellers are exhausted
- Higher volume on ST = be cautious, sellers might still be strong
ACCUMULATION RANGE CHECKLIST
| Event | Price Action | Volume Check | ✓ |
|---|---|---|---|
| ☐ PS | First bounce during downtrend | Increasing | ☐ |
| ☐ SC | Sharp drop, long wick, strong bounce | SPIKE (highest) | ☐ |
| ☐ AR | Rally after SC, sets range high | Moderate, decreasing | ☐ |
| ☐ ST | Retest of SC area, holds | LOWER than SC | ☐ |
DISTRIBUTION EVENTS EXPLAINED (After an Uptrend)
This is where institutions are secretly SELLING before price goes down.
EVENT 1: PSY (Preliminary Supply)
| What It Is | First sign that sellers are stepping in during an uptrend |
|---|---|
| What It Looks Like | Price rises, then drops — but uptrend continues after |
| Volume | Increasing — sellers are starting to show up |
| Your Action | Just observe — don't trade yet |
EVENT 2: BC (Buying Climax)
| What It Is | The EUPHORIA HIGH — where everyone FOMOs in at the top |
|---|---|
| What It Looks Like | Sharp rise, big green candles, then sudden reversal |
| Volume | HUGE SPIKE — retail buying in FOMO, institutions selling to them |
| Your Action | Mark this level! This is the TOP of your range |
│██│ ← BC: Euphoria candle, high volume
│██│ Institutions selling into the rally
╱└──┘
╱
╱
╱
EVENT 3: AR (Automatic Reaction)
| What It Is | The drop that happens naturally after the Buying Climax |
|---|---|
| What It Looks Like | Quick drop after the BC, then stalls |
| Volume | Moderate to decreasing |
| Your Action | Mark this level! This is the BOTTOM of your range |
EVENT 4: ST (Secondary Test)
| What It Is | Price comes back up to TEST if the BC high will hold |
|---|---|
| What It Looks Like | Price rises toward BC level, but doesn't break it (usually) |
| Volume | LOWER than BC |
| Your Action | Confirm that buying pressure is decreasing |
DISTRIBUTION RANGE CHECKLIST
| Event | Price Action | Volume Check | ✓ |
|---|---|---|---|
| ☐ PSY | First rejection during uptrend | Increasing | ☐ |
| ☐ BC | Sharp rise, rejection, reversal | SPIKE (highest) | ☐ |
| ☐ AR | Drop after BC, sets range low | Moderate, decreasing | ☐ |
| ☐ ST | Retest of BC area, fails | LOWER than BC | ☐ |
HOW TO DRAW THE RANGE ON TRADINGVIEW
-
Find the SC (for accumulation) or BC (for distribution)
- Look for the candle with the HIGHEST volume
- This is usually a sharp move with a long wick
-
Draw a horizontal line at the SC/BC low/high
- This is your RANGE LOW (accumulation) or RANGE HIGH (distribution)
-
Find the AR
- The first significant bounce/drop after SC/BC
-
Draw a horizontal line at the AR
- This is your RANGE HIGH (accumulation) or RANGE LOW (distribution)
-
Use Fixed Range Volume Profile
- Select from SC to current price
- This shows you where volume is concentrated WITHIN the range
PHASE 2 CHECKLIST (Complete Before Moving to Phase 3)
☐ Identified whether this is ACCUMULATION or DISTRIBUTION
☐ Marked the SC (or BC) level — RANGE LOW/HIGH
☐ Marked the AR level — RANGE HIGH/LOW
☐ Confirmed ST occurred on lower volume
☐ Drew horizontal lines on chart for range boundaries
☐ Applied Fixed Range Volume Profile to the range
☐ Range is clear and tradeable (not too choppy/messy)
PHASE 3: Wait for the Trap (15m / 1H)
Goal: Identify the Spring (longs) or UTAD (Upthrust After Distribution - shorts)
ABBREVIATION GLOSSARY
| Short | Full Term | Meaning |
|---|---|---|
| SC | Selling Climax | Panic selling, institutions absorb — marks the LOW |
| AR | Automatic Rally | Bounce after SC, sets the range HIGH |
| ST | Secondary Test | Price retests the SC area on lower volume |
| PS | Preliminary Support | First sign of buying in downtrend (before SC) |
| Spring | Spring / Shakeout | False breakdown below SC — liquidity grab |
| SOS | Sign of Strength | Strong move up, breaks resistance |
| LPS | Last Point of Support | Pullback after SOS — your entry zone |
| UTAD | Upthrust After Distribution | False breakout above BC — liquidity grab (shorts) |
| SOW | Sign of Weakness | Strong move down, breaks support |
| LPSY | Last Point of Supply | Pullback after SOW — short entry zone |
| POC | Point of Control | Highest volume price level |
| HVN | High Volume Node | Thick volume area — price sticks here |
| LVN | Low Volume Node | Thin volume — price moves fast through |
| CHoCH | Change of Character | First sign trend is reversing |
| BOS | Break of Structure | Confirms trend continuation |
| FVG | Fair Value Gap | Imbalance zone, price often returns to fill |
WHAT A SPRING LOOKS LIKE ON 15M CHART
On higher timeframes (4H, 1H), a Spring might look like just one or two candles. On lower timeframes (15m, 5m), you can see the trap happening in real-time.
RANGE LOW (Selling Climax level) ━━━━━━━━━━━━━━━━━━━━━━━━━━━━
│
What retail traders see: │ "It's breaking down! SELL!"
│
▼
┌────────────────┐
│ LIQUIDITY │ ← Stop losses from
│ POOL │ traders who bought
│ (Buy stops) │ the range low
└────────────────┘
│
▼
SPRING LOW ────────────────────────────────────────────
│
│ Price wicks down, grabs liquidity
│ Institutions BUY here
│
▼
FAST REVERSAL BACK UP
│
▼
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Price closes BACK INSIDE range
15M Candle Pattern:
Range Low
─────────────────────────────────────
│
┌───┐ │
│ │ │ Candle 1: Breaks below (looks bearish)
│ │ │
└─┬─┘ │
│ │
│←──────│─── Long wick below = Spring
│ │
┌─┴─┐ │
│███│ │ Candle 2: Strong bullish, closes back inside
│███│ │
└───┘ │
│
┌───┐ │
│███│ │ Candle 3: Continuation, confirms reversal
│███│ │
│███│ │
└───┘ │
─────────────────────────────────────
SPRING CONFIRMATION CHECKLIST (Need 4 of 6)
| # | Check | How to Confirm | ✓ |
|---|---|---|---|
| 1 | Price breaks below range low | Candle wick or close below Selling Climax level | ☐ |
| 2 | Quick reversal | Within 1-3 candles, price is back inside range | ☐ |
| 3 | Volume spike | Higher than average on breakdown AND reversal | ☐ |
| 4 | RSI divergence | Price makes lower low, RSI makes higher low | ☐ |
| 5 | LuxAlgo SMC confirmation | Liquidity sweep label OR bullish order block forms | ☐ |
| 6 | Candle structure | Bullish engulfing, hammer, or strong rejection wick | ☐ |
RSI BULLISH DIVERGENCE (Key Confirmation)
Price Chart:
\
\ /
\ /
\ /
\/ ← Lower low (Spring)
RSI Indicator:
\ /
\ /
\/ ← Higher low
= BULLISH DIVERGENCE
Momentum is NOT confirming the drop
Smart money is accumulating
RSI Bearish Divergence (for UTAD/shorts):
Price Chart:
/\ ← Higher high (UTAD)
/ \
/ \
/ \
RSI Indicator:
/\ ← Lower high
/ \
= BEARISH DIVERGENCE
Momentum is weakening
Smart money is distributing
MACD SIGNALS TO WATCH
| Signal | Meaning |
|---|---|
| Histogram shrinking | Selling/buying pressure weakening |
| Bullish crossover | Signal line crosses ABOVE MACD line (for longs) |
| Bearish crossover | Signal line crosses BELOW MACD line (for shorts) |
| Above zero line | Bullish momentum confirmed |
| Below zero line | Bearish momentum confirmed |
LUXALGO SMC SIGNALS FOR SPRING
| Signal | What It Looks Like | Meaning |
|---|---|---|
| Liquidity sweep | Price taps a blue liquidity line then reverses | Stops were hunted |
| CHoCH (Change of Character) | Label appears after reversal | Trend shifting |
| Bullish Order Block | Cyan box forms at the low | Demand zone created |
| BOS (Break of Structure) | Label after CHoCH | Confirms new direction |
VOLUME DURING A SPRING
Volume
│
│ ████ ← Spike on breakdown (panic selling)
│ ████
│ ████ ████ ← Even bigger on reversal (institutions buying)
│ ██ ████ ████ ██
└──────────────────
1 2 3
Candles
What you want:
- Breakdown candle: High volume (retail panic)
- Reversal candle: High OR higher volume (smart money absorbing)
- Confirmation: Can be lower volume, that's okay
STEP-BY-STEP: TRADING THE SPRING
Step 1: Watch for approach to range low
Switch to 15m chart when price gets within 2% of Selling Climax
Step 2: Wait for the break
Don't buy the first touch
Wait for wick below OR close below
Step 3: Watch for reversal signals
☐ Strong bullish candle
☐ RSI divergence
☐ Volume spike
☐ LuxAlgo CHoCH label
Step 4: Entry trigger
Enter when price closes back ABOVE the range low
OR
Enter on Break of Structure (BOS) on 15m
Step 5: Stop Loss placement
Stop Loss = Below the Spring wick low
Buffer = 0.5 × ATR(14) on 15m
Step 6: Take Profit targets
TP1 = Automatic Rally level — close 50%
TP2 = Measured move (range height added to breakout)
UTAD SETUP (Short) — Mirror of Spring
Price breaks ABOVE the range high (Buying Climax level)
↓
Quickly reverses back INTO the range
↓
This is the UTAD (Upthrust After Distribution) = liquidity grab
UTAD Confirmation Checklist (Need 4 of 6):
| # | Check | How to Confirm | ✓ |
|---|---|---|---|
| 1 | Price breaks above range high | Candle wick or close above Buying Climax level | ☐ |
| 2 | Quick reversal | Within 1-3 candles, price is back inside range | ☐ |
| 3 | Volume spike | Higher than average on breakout AND reversal | ☐ |
| 4 | RSI divergence | Price makes higher high, RSI makes lower high | ☐ |
| 5 | LuxAlgo SMC confirmation | Liquidity sweep label OR bearish order block forms | ☐ |
| 6 | Candle structure | Bearish engulfing, shooting star, or strong rejection wick | ☐ |
ALTERNATIVE SCENARIO: NO SPRING — USE SOS + LPS
Sometimes price doesn't come back down for a Spring. Watch for breakout instead:
Sign of Strength (SOS) + Last Point of Support (LPS) Entry:
┌─────────────────────────────────────────────
│
│ Price breaks ABOVE Automatic Rally
│ │
│ ▼
│ Strong green candles + high volume
│ This is the Sign of Strength (SOS)
│ │
│ ▼
│ Price pulls back to broken resistance
│ This is the Last Point of Support (LPS)
│ │
│ ▼
│ ENTRY HERE
│ Stop Loss below the pullback low
│
━━━━━━━━━┷━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ AR Level
DECISION FLOWCHART
Is price near range low (SC)?
│
┌─────────┴─────────┐
YES NO
│ │
▼ ▼
Watch for Spring Is price near range high (AR)?
│ │
│ ┌─────┴─────┐
│ YES NO
│ │ │
│ ▼ ▼
│ Watch for SOS WAIT
│ breakout (no setup yet)
│ │
▼ ▼
Spring confirmed? SOS confirmed?
(4 of 6 checks) (break + volume)
│ │
YES YES
│ │
▼ ▼
Enter LONG Wait for LPS pullback
SL below wick Enter on pullback
SL below LPS low
SETUP COMPARISON TABLE
| Setup | Entry Zone | Stop Loss | Target 1 | Ideal R:R |
|---|---|---|---|---|
| Spring (Long) | Just above range low (SC) | Below Spring wick | Automatic Rally (AR) | 3:1 to 5:1 |
| LPS after SOS (Long) | Pullback to broken AR | Below pullback low | Measured move | 2:1 to 3:1 |
| UTAD (Short) | Just below range high (BC) | Above UTAD wick | Automatic Reaction (AR) | 3:1 to 5:1 |
| LPSY after SOW (Short) | Pullback to broken AR | Above pullback high | Measured move | 2:1 to 3:1 |
PHASE 4: Entry Execution (5m / 15m)
Goal: Precise entry after confirmation
WHY THIS MATTERS: Phase 3 told you the setup is valid. Now you need to find the EXACT moment to enter. A good entry means tighter stop loss, better risk-reward, and more profit.
UNDERSTANDING ENTRY METHODS
There are two main approaches. Neither is "better" — choose based on your personality:
METHOD A: AGGRESSIVE ENTRY (Higher Risk, Better Reward)
| What It Is | Enter immediately after the Spring/UTAD candle closes back in range |
|---|---|
| Pros | Best price, highest reward-to-risk ratio, don't miss the move |
| Cons | Higher chance of being wrong, might get stopped out on a "fake" Spring |
| Best For | Experienced traders, clear setups with strong confirmation |
WHEN TO USE AGGRESSIVE ENTRY:
- You have 5 or 6 out of 6 confirmations from Phase 3
- Volume on the reversal was VERY high
- LuxAlgo showed clear CHoCH (Change of Character)
- You're willing to accept a higher stop-out rate
HOW TO EXECUTE:
1. Spring candle closes back INSIDE the range
2. Wait for that candle to CLOSE (don't enter mid-candle)
3. Enter on the NEXT candle open
4. Set SL immediately below the Spring wick
AGGRESSIVE ENTRY EXAMPLE:
Range Low ─────────────────────────
│
┌────┴────┐
│ │ ← Spring candle closes back inside
│ █ │
└────│────┘
│
Spring wick ──┘
▲ ENTER HERE (next candle open)
METHOD B: CONSERVATIVE ENTRY (Lower Risk, Confirmed)
| What It Is | Wait for Sign of Strength (SOS) then enter on Last Point of Support (LPS) |
|---|---|
| Pros | More confirmation, higher win rate, less stress |
| Cons | Worse entry price, might miss some moves, lower reward-to-risk |
| Best For | Newer traders, unclear setups, when you want more proof |
WHEN TO USE CONSERVATIVE ENTRY:
- You only have 4 out of 6 confirmations
- Volume wasn't convincing
- You're not sure if the Spring is "real"
- You want to see the market prove itself first
HOW TO EXECUTE:
1. Spring happens (Phase 3 confirmed)
2. WAIT — don't enter yet
3. Watch for SOS: A strong move up that breaks internal structure
4. WAIT — still don't enter
5. Watch for LPS: A pullback after the SOS
6. ENTER on the LPS pullback
7. Set SL below the LPS low (or below Spring if close)
CONSERVATIVE ENTRY EXAMPLE:
│
┌────┴────┐
│ SOS │ ← Strong move up, breaks structure
│ █ │
┌────│────┐ │
│ │ │ │
│ │ │ ╱ │
│ │ │╱ │ ┌─────┐
│ │ ╱ │ │ LPS │ ← Pullback = YOUR ENTRY
│ │ ╱ │ │ █ │
Range Low ─│────│──╱──────│───│─────│───
│ │ ╱ │ └─────┘
│ │╱ │ ▲
└────┴─────────┘ │
│ ENTER HERE
Spring wick ┘
ENTRY TRIGGER CHECKLIST
Before clicking BUY or SELL, confirm:
| # | Check | Why It Matters | ✓ |
|---|---|---|---|
| 1 | Spring/UTAD confirmed on 15m+ | Setup must be valid on decent timeframe | ☐ |
| 2 | Lower timeframe BOS in your direction | Shows momentum is with you | ☐ |
| 3 | Entry at order block or FVG | Better prices, institutional levels | ☐ |
| 4 | RSI not at opposite extreme | If longing, RSI shouldn't be at 70+ | ☐ |
| 5 | No major news in next 30 min | News can destroy your setup | ☐ |
USING ORDER BLOCKS FOR PRECISION ENTRY
WHAT IS AN ORDER BLOCK? The last candle before a strong move in the opposite direction. This is where institutions placed orders, and price often returns to these zones.
HOW TO USE FOR ENTRY:
For LONGS after a Spring:
- Find the last RED candle before the bullish reversal
- Draw a box around that candle's body (not wicks)
- When price pulls back, enter when it touches this zone
│
┌────┴────┐
│ Green │ ← Start of reversal
│ █ │
┌────│────┐ │
│ OB │ │ │ ← Order Block (last red candle)
│░░░░│ │ │ Enter when price returns here
└────│────┘ │
│ │
Spring wick ┘ │
FAIR VALUE GAP (FVG) ENTRY
WHAT IS A FVG? A gap between candles where price moved so fast it left an "imbalance." Price often returns to "fill" these gaps.
HOW TO IDENTIFY:
- Look for 3 candles in a row
- If candle 1's HIGH doesn't touch candle 3's LOW (for bullish FVG)
- The gap between them is the FVG
┌───┐
│ 3 │
│ │
─────┴───┴───── Candle 3 low
═════════════ ← FVG ZONE (enter here)
─────┬───┬───── Candle 1 high
│ 1 │
│ │
└───┘
ENTRY SIZE AND SCALING
FULL POSITION AT ONCE:
- Use if setup is very clear (5-6 confirmations)
- Enter 100% of planned position size
SCALING IN (2-3 ENTRIES):
- Use if setup is okay but not perfect
- Enter 50% at first level
- Add 25% if price gives a better entry (deeper pullback)
- Add final 25% on confirmation of direction
Example for $10,000 planned position:
Entry 1: $5,000 at 81,000 (Spring reversal)
Entry 2: $2,500 at 80,500 (pullback to order block)
Entry 3: $2,500 at 81,500 (BOS confirmation)
Average entry: weighted average of all entries
PHASE 4 CHECKLIST
☐ Decided on Aggressive or Conservative method
☐ If aggressive: Spring/UTAD candle is CLOSED
☐ If conservative: SOS has occurred, waiting for LPS
☐ Identified order block or FVG for precision entry
☐ Entry trigger checklist completed (5 items above)
☐ Know exact entry price BEFORE clicking
☐ Position size calculated (see Phase 5)
PHASE 5: Stop Loss Placement
Goal: Protect your capital with a logical stop loss
WHY THIS MATTERS: Your stop loss is your EXIT if you're WRONG. Without it, one bad trade can destroy your account. A good stop loss is placed where, if hit, the trade idea is INVALID — not just randomly below your entry.
THE GOLDEN RULE OF STOP LOSS
"Place your stop where the setup becomes invalid."
For a Spring trade: If price breaks BELOW the Spring low, the Spring failed. For an UTAD trade: If price breaks ABOVE the UTAD high, the UTAD failed.
That's where your stop goes — with a small buffer for noise.
STOP LOSS FOR LONGS (Spring Setup)
| Logic | Your SL goes BELOW the Spring wick low |
|---|---|
| Why | If price goes below the Spring, institutions failed to hold — your thesis is wrong |
| Buffer | Add 0.5 × ATR or 0.1-0.3% to avoid getting stopped by noise |
HOW TO CALCULATE:
Step 1: Find the Spring low (the lowest wick)
Step 2: Get ATR(14) value on your entry timeframe
Step 3: SL = Spring Low - (0.5 × ATR)
EXAMPLE:
Spring low = 79,500
ATR(14) = 400
Buffer = 0.5 × 400 = 200
SL = 79,500 - 200 = 79,300
VISUAL:
Entry ──────────────────── 81,000
│
│ Your risk = Entry - SL
│ = 81,000 - 79,300
│ = 1,700 points
│
Spring low ──│───────────────── 79,500
│
Buffer ─│─ (200 points)
│
SL ─┴───────────────── 79,300
STOP LOSS FOR SHORTS (UTAD Setup)
| Logic | Your SL goes ABOVE the UTAD wick high |
|---|---|
| Why | If price goes above the UTAD, the false breakout wasn't false — it's a real breakout |
| Buffer | Add 0.5 × ATR or 0.1-0.3% |
HOW TO CALCULATE:
Step 1: Find the UTAD high (the highest wick)
Step 2: Get ATR(14) value on your entry timeframe
Step 3: SL = UTAD High + (0.5 × ATR)
EXAMPLE:
UTAD high = 95,500
ATR(14) = 350
Buffer = 0.5 × 350 = 175
SL = 95,500 + 175 = 95,675
WHAT IS ATR? (Average True Range)
ATR measures volatility — how much price typically moves in one candle.
| High ATR | Market is volatile, candles are big | Use bigger buffer |
|---|---|---|
| Low ATR | Market is calm, candles are small | Can use smaller buffer |
HOW TO ADD ATR IN TRADINGVIEW:
- Click "Indicators"
- Search "ATR"
- Select "Average True Range"
- Default setting (14 periods) is fine
ALTERNATIVE: FIXED PERCENTAGE BUFFER
If you don't want to use ATR:
| Volatility | Buffer Suggestion |
|---|---|
| Low (calm market) | 0.1% below Spring low |
| Medium | 0.2% below Spring low |
| High (volatile market) | 0.3% below Spring low |
EXAMPLE (0.2% buffer):
Spring low = 79,500
Buffer = 79,500 × 0.002 = 159
SL = 79,500 - 159 = 79,341
COMMON STOP LOSS MISTAKES
| Mistake | Why It's Bad | What To Do Instead |
|---|---|---|
| SL too tight | You get stopped out on normal noise | Use ATR buffer |
| SL too wide | Risk too much per trade | Reduce position size |
| Moving SL closer | Emotion-driven, increases stop-outs | Set it and forget it |
| No SL at all | One trade can blow your account | ALWAYS use SL |
| SL at a round number | Everyone puts SL there, gets hunted | Offset by a few points |
POSITION SIZE BASED ON STOP LOSS
THE FORMULA:
Position Size = (Account Balance × Risk %) / (Entry Price - Stop Loss)
EXAMPLE:
Account Balance = $10,000
Risk % = 1% (recommended for beginners)
Entry Price = 81,000
Stop Loss = 79,300
Risk in points = 81,000 - 79,300 = 1,700
Risk in dollars = $10,000 × 0.01 = $100
Position Size = $100 / 1,700 points = 0.059 BTC (approx)
Or in dollar terms for contracts:
If 1 point = $1, Position Size = $100 / 1,700 = $0.059 per point
POSITION SIZE TABLE (1% Risk):
| Account Size | Max Risk (1%) | If SL is 1000 pts | If SL is 2000 pts |
|---|---|---|---|
| $1,000 | $10 | 0.01 unit | 0.005 unit |
| $5,000 | $50 | 0.05 unit | 0.025 unit |
| $10,000 | $100 | 0.1 unit | 0.05 unit |
| $50,000 | $500 | 0.5 unit | 0.25 unit |
PHASE 5 CHECKLIST
☐ Identified the Spring low or UTAD high
☐ Checked ATR(14) on entry timeframe
☐ Calculated buffer (0.5 × ATR or fixed %)
☐ Set SL = Spring/UTAD extreme + buffer
☐ Verified SL is NOT at a round number (offset if needed)
☐ Calculated position size based on SL distance
☐ Confirmed total risk is 1-2% of account (not more)
☐ Entered SL into trading platform BEFORE entry
PHASE 6: Take Profit Targets
Goal: Lock in profits at logical levels
WHY THIS MATTERS: Taking profit is just as important as entry. Too early = leave money on table. Too late = give back profits. Multiple targets let you lock in gains while letting some profit run for bigger moves.
THE SCALING OUT STRATEGY
WHY SCALE OUT?
- Locks in guaranteed profit at TP1
- Reduces stress (you've already won)
- Lets remaining position capture bigger moves
- Protects against reversals
RECOMMENDED SPLIT:
| Target | % of Position | Purpose |
|---|---|---|
| TP1 | 30-50% | Secure profit, cover risk |
| TP2 | 30% | Capture extended move |
| TP3 | 20-40% | Catch the full trend (or trail) |
TP1: OPPOSITE SIDE OF RANGE (Automatic Rally Level)
LOGIC: The range has been tested — the AR level is proven support/resistance. Price is likely to reach this level at minimum.
FOR LONGS (Spring):
TP1 = Automatic Rally (AR) level
EXAMPLE:
SC (Range Low) = 80,000
AR (Range High) = 95,000
Your Entry = 81,000
TP1 = 95,000
Profit at TP1 = 95,000 - 81,000 = 14,000 points
FOR SHORTS (UTAD):
TP1 = Automatic Reaction (AR) level
EXAMPLE:
BC (Range High) = 98,000
AR (Range Low) = 85,000
Your Entry = 97,000
TP1 = 85,000
Profit at TP1 = 97,000 - 85,000 = 12,000 points
VISUAL (Long from Spring):
TP1 ━━━━━━━━━━━━━━━━━━━ 95,000 (AR level)
│
│ ← Close 30-50% here
│
│
│
│
Entry ───│──────────────── 81,000
│
SL ─┴──────────────── 79,300
TP2: MEASURED MOVE (1× Range Height)
LOGIC: Wyckoff's "Cause and Effect" law — the size of the accumulation/distribution (cause) determines the size of the move (effect).
HOW TO CALCULATE:
Step 1: Calculate Range Height
Range Height = AR - SC
Step 2: Add Range Height to breakout point
TP2 = AR + Range Height (for longs)
TP2 = AR - Range Height (for shorts)
EXAMPLE (Long):
SC = 80,000
AR = 95,000
Range Height = 95,000 - 80,000 = 15,000
TP2 = 95,000 + 15,000 = 110,000
VISUAL:
TP2 ━━━━━━━━━━━━━━━━━━━ 110,000 (measured move)
│
│ ← Range Height (15,000)
│
TP1/AR ━━│━━━━━━━━━━━━━ 95,000
│
│ ← Range Height (15,000)
│
SC ━━┷━━━━━━━━━━━━━ 80,000
TP3: EXTENDED TARGET OR TRAIL
OPTION A: Fixed Target (1.5× or 2× Range Height)
TP3 = AR + (1.5 × Range Height) or
TP3 = AR + (2 × Range Height)
EXAMPLE:
Range Height = 15,000
TP3 (1.5×) = 95,000 + 22,500 = 117,500
TP3 (2×) = 95,000 + 30,000 = 125,000
OPTION B: Trail with EMA 21
Instead of a fixed target, trail your stop using the 21 EMA:
1. After TP2 is hit, move SL to below the EMA 21
2. Update SL every day (or every 4H candle)
3. Exit when price closes below EMA 21
EXAMPLE:
Position open at 81,000
TP1 hit at 95,000 (closed 40%)
TP2 hit at 110,000 (closed 30%)
Remaining 30%:
- Day 1: EMA 21 = 105,000, SL = 104,500
- Day 2: EMA 21 = 108,000, SL = 107,500
- Day 3: EMA 21 = 112,000, SL = 111,500
- Day 4: Price closes at 110,000 (below EMA)
- Exit remaining at 110,000
OPTION C: Trail with Swing Lows/Highs
1. After each new swing low forms, move SL to just below it
2. Exit when price breaks below a swing low
For longs: Trail below swing LOWS
For shorts: Trail above swing HIGHS
VISUAL (Trailing with Swing Lows):
Price action
/\ /\
/ \ / \ /\
/ \/ \ / \
/ \/ \ ← Exit here (broke swing low)
│ │
│ │
Swing lows: SL1 SL2 (each time, move your SL up)
TAKE PROFIT TABLE TEMPLATE
Fill this out BEFORE entering a trade:
| Level | Target Price | % of Position | Action | R:R from Entry |
|---|---|---|---|---|
| Entry | _____ | 100% | Open position | 0 |
| SL | _____ | Exit all | Stop loss | -1 |
| TP1 | _____ | Close __% | Take profit | __:1 |
| TP2 | _____ | Close __% | Take profit | __:1 |
| TP3 | _____ | Close __% | Take profit or trail | __:1 |
EXAMPLE FILLED OUT:
| Level | Target Price | % of Position | Action | R:R from Entry |
|---|---|---|---|---|
| Entry | 81,000 | 100% | Open long | 0 |
| SL | 79,300 | Exit all | Stop loss | -1 |
| TP1 | 95,000 | Close 40% | Take profit | 8.2:1 |
| TP2 | 110,000 | Close 30% | Take profit | 17:1 |
| TP3 | Trail/125,000 | Close 30% | Trail or exit | 25:1+ |
WHAT TO DO AFTER TP1 IS HIT
MOVE SL TO BREAKEVEN:
Once TP1 is hit, your trade is now "risk free."
Before TP1:
Entry = 81,000
SL = 79,300
Risk = 1,700 points
After TP1 (move SL to breakeven):
Entry = 81,000
New SL = 81,000 (or 81,100 for tiny profit)
Risk = 0 points (or +100 points guaranteed)
WHY THIS MATTERS:
- You can't lose money on this trade anymore
- Removes emotional stress
- Lets you hold for bigger targets without fear
R:R (RISK-TO-REWARD) CALCULATION
FORMULA:
R:R = (Target - Entry) / (Entry - Stop Loss)
EXAMPLE:
Entry = 81,000
SL = 79,300
TP1 = 95,000
Risk = 81,000 - 79,300 = 1,700
Reward = 95,000 - 81,000 = 14,000
R:R = 14,000 / 1,700 = 8.2:1
MINIMUM R:R GUIDELINES:
| R:R | Verdict | Action |
|---|---|---|
| Below 1:1 | BAD | Don't take this trade |
| 1:1 to 1.5:1 | Poor | Only if win rate is very high |
| 2:1 to 3:1 | Good | Standard minimum |
| 3:1 to 5:1 | Excellent | Ideal for most trades |
| 5:1+ | Outstanding | Spring/UTAD setups often achieve this |
PHASE 6 CHECKLIST
☐ TP1 set at opposite side of range (AR level)
☐ TP2 calculated using measured move (Range Height)
☐ TP3 strategy decided (fixed target or trail)
☐ Position split decided (e.g., 40/30/30)
☐ R:R calculated and is at least 2:1 for TP1
☐ All levels marked on chart
☐ Take profit orders set in trading platform
☐ Know the plan for moving SL to breakeven after TP1
QUICK REFERENCE: Indicator Settings
| Indicator | Setting | Purpose |
|---|---|---|
| EMA | 21, 50, 200 | Trend & dynamic S/R |
| RSI | 14 | Divergences, overbought/oversold |
| MACD | 12, 26, 9 | Momentum shifts |
| Volume Profile (VPVR) | Session or Fixed Range | Value areas, HVN/LVN |
| ATR | 14 | Volatility for SL sizing |
| LuxAlgo SMC | Default | Liquidity, OB, BOS |
TRADE EXECUTION CHECKLIST
Before clicking buy/sell:
☐ HTF trend identified (Phase 1)
☐ Trading range marked with SC/BC and AR (Phase 2)
☐ Spring or UTAD occurred (Phase 3)
☐ Entry trigger confirmed (Phase 4)
☐ SL placed beyond manipulation wick (Phase 5)
☐ TP levels marked on chart (Phase 6)
☐ Risk calculated (1-2% of account max)
☐ R:R minimum 1:2
RISK MANAGEMENT RULES
WHY THIS IS THE MOST IMPORTANT SECTION: You can have the best strategy in the world, but bad risk management will destroy your account. Most traders fail not because of bad entries, but because they risk too much per trade.
THE CORE RULES
| Rule | Guideline | Why |
|---|---|---|
| Max risk per trade | 1-2% of account | One bad trade won't hurt you |
| Max daily loss | 3-5% of account | Prevents revenge trading spirals |
| Max correlated positions | 2-3 | If BTC dumps, all crypto dumps — don't overexpose |
| Min R:R | 1:2 (ideally 1:3+) | Even 40% win rate is profitable at 2:1 |
WHY 1-2% RISK?
THE MATH:
If you risk 1% per trade and lose 10 trades in a row (very unlikely):
Starting: $10,000
After 10 losses: $10,000 × (0.99)^10 = $9,044
You still have 90% of your account!
If you risk 10% per trade and lose 5 trades in a row:
Starting: $10,000
After 5 losses: $10,000 × (0.90)^5 = $5,905
You've lost 40% of your account!
To recover, you need a 69% gain — very hard.
THE LESSON: Small risks let you survive losing streaks. Big risks can blow your account fast.
POSITION SIZE FORMULA (Repeated for Importance)
Position Size = (Account Balance × Risk %) / (Entry - Stop Loss)
EXAMPLE:
Account = $10,000
Risk = 1% = $100
Entry = 92,000
SL = 90,000
Distance = 92,000 - 90,000 = 2,000 points
Position Size = $100 / 2,000 = $0.05 per point
Or if trading 1 BTC contract where 1 point = $1:
Position Size = $100 / $2,000 = 0.05 BTC
CORRELATION RISK
WHAT IS IT? If you have 3 long positions on BTC, ETH, and SOL — they're all correlated. When BTC dumps, they ALL dump. Your "3 separate trades" are actually 1 big trade.
HOW TO MANAGE:
BAD: Long BTC (1% risk) + Long ETH (1% risk) + Long SOL (1% risk)
Real risk = essentially 3% on one outcome (crypto going up)
BETTER: Long BTC (1% risk) + Long Gold (1% risk) + Short EUR/USD (1% risk)
Different markets = truly diversified risk
FOR CRYPTO-ONLY TRADERS:
- Treat all crypto positions as ONE combined risk
- If max daily loss is 3%, don't have 3 separate crypto longs
DAILY LOSS LIMIT PROTOCOL
WHEN YOU HIT YOUR DAILY LOSS LIMIT:
1. STOP trading immediately
2. Close TradingView
3. Walk away from the computer
4. Do NOT check prices for at least 2 hours
5. Journal what went wrong
6. Come back tomorrow with fresh eyes
WHY THIS MATTERS: After losses, your emotions are HIGH. You'll want to "make it back." This leads to revenge trading — bigger positions, worse entries, more losses.
RED FLAGS — DO NOT TRADE
When you see these, SKIP THE TRADE. No exceptions.
| Red Flag | Why It's Bad | What Happens If You Ignore |
|---|---|---|
| No clear range structure | You're guessing, not trading a setup | Random results, 50/50 gamble |
| Spring/UTAD on low volume | Might be a real breakdown, not manipulation | Get caught in a trend move |
| Against HTF trend | Swimming against the current | Higher failure rate |
| Major news in next 30 min | News = volatility + random moves | Can spike through your SL |
| R:R below 1.5:1 | Risk too much for the potential gain | Lose even with 50% win rate |
| Already at max daily risk | One more loss = exceed your rules | Emotional spiral begins |
| Emotional state compromised | Can't think clearly | Bad decisions guaranteed |
EMOTIONAL RED FLAGS EXPLAINED
REVENGE TRADING:
"I just lost, I need to make it back NOW"
→ Take bigger position
→ Enter worse setup
→ Lose more
→ Feel worse
→ Repeat until blown account
FOMO (Fear Of Missing Out):
"Price is moving without me! I need to get in!"
→ Chase the move
→ Enter at bad price
→ Price reverses
→ Lose
→ Feel stupid
OVERCONFIDENCE:
"I've won 5 trades in a row, I can't lose!"
→ Take bigger position
→ Skip confirmations
→ Eventually lose big
→ Give back all profits
THE FIX: When you feel ANY of these emotions:
- Recognize it ("I'm feeling FOMO right now")
- Step away from the screen
- Wait at least 1 hour
- Only trade if setup STILL looks good
VISUAL SCHEMATIC
Accumulation (Long Setup)
AR ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Range High
│ ST LPSY(entry)
│ ╱ ╲ ↗
│ ╱ ╲ SOS
│ ╱ ╲ ↗
PS ╱ ╲╱
│╱
SC ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Range Low
╲
Spring (liquidity grab)
Entry: At LPS after SOS, or aggressive at Spring
SL: Below Spring low
TP1: AR level
Distribution (Short Setup)
UTAD (liquidity grab)
╱
BC ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Range High
│╲
PSY ╲ ╱╲
│ ╲ ╱ SOW
│ ╲ ╱ ↘
│ ╲ ╱ LPSY(entry)
│ ST ↘
AR ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Range Low
Entry: At LPSY after SOW, or aggressive at UTAD
SL: Above UTAD high
TP1: AR level
DAILY ROUTINE
WHY ROUTINE MATTERS: Consistent profits come from consistent process. A daily routine removes emotion and decision fatigue. You know exactly what to do every day.
PRE-MARKET (30-60 min Before Your Trading Session)
STEP 1: Check Your Mental State
Ask yourself:
☐ Did I sleep well? (If no, consider not trading)
☐ Am I stressed about anything outside trading?
☐ Did I lose yesterday? Am I still emotional about it?
☐ Do I NEED to trade today, or WANT to? (Never NEED to)
STEP 2: Check Economic Calendar
Go to: Forex Factory (forexfactory.com) or TradingView Economic Calendar
Look for HIGH IMPACT events (red/orange flags):
- Interest rate decisions
- CPI/Inflation data
- Employment numbers (NFP)
- Fed/ECB speeches
If major news in next 4 hours:
→ Don't enter new positions 30 min before
→ Either close positions before news OR widen SL
→ Wait for volatility to settle after news
STEP 3: HTF Analysis (Daily/4H)
On your Daily chart:
☐ What's the overall trend?
☐ Where are the major support/resistance levels?
☐ Any new CHoCH or BOS from LuxAlgo?
On your 4H chart:
☐ Is there a Wyckoff range forming?
☐ Where is price relative to the range?
☐ Any approach to SC or AR levels?
STEP 4: Build Your Watchlist
Create a list of assets that are:
☐ In Phase 2 (range forming) — watch for Spring/UTAD
☐ In Phase 3 (near range edges) — ready for entry
☐ Near major liquidity levels
Keep this list to 3-5 assets MAX (focus > quantity)
DURING TRADING SESSION
STEP 5: Monitor Your Watchlist
Don't stare at charts all day. Set alerts instead:
On TradingView:
1. Right-click on a price level
2. Select "Add Alert"
3. Set alert for when price reaches your key level
Example alerts:
- "BTC approaching SC at 80,500"
- "ETH near AR at 3,200"
- "Price crossed below EMA 200"
STEP 6: When Alert Triggers — Run The Process
☐ Switch to 15m chart
☐ Is this a valid Phase 3 setup?
☐ Run the 6-point confirmation checklist
☐ If 4+ confirmations → Calculate position size
☐ Set Entry, SL, TP orders
☐ Execute trade
☐ Record in trading journal
STEP 7: Manage Open Positions
Don't watch every tick. Check positions:
- Every 1-4 hours for swing trades
- At key times (market open, close, news events)
When checking:
☐ Is SL still in the right place?
☐ Has TP1 been hit? (Move SL to breakeven)
☐ Has anything invalidated the setup?
POST-SESSION (After Trading Hours)
STEP 8: Review The Day
Even if you didn't trade, review:
☐ Did any setups trigger that I missed?
☐ Did any setups trigger that I took? How did they go?
☐ Did I follow my rules?
☐ What can I improve tomorrow?
STEP 9: Trading Journal Entry
FOR EVERY TRADE (win or lose):
Date: _______
Asset: _______
Direction: Long / Short
Setup: Spring / UTAD / LPS / LPSY
Entry: _______
SL: _______
TP1: _______ (hit? Y/N)
TP2: _______ (hit? Y/N)
TP3: _______ (hit? Y/N)
Result: +____% / -____%
What I did well:
_________________________________
What I could improve:
_________________________________
Screenshot: [paste chart image]
STEP 10: Update Watchlist For Tomorrow
☐ Remove assets no longer in valid setups
☐ Add new assets approaching key levels
☐ Note any patterns developing on HTF
☐ Set alerts for tomorrow's key levels
WEEKLY REVIEW (Weekend)
Every weekend, spend 30-60 minutes:
☐ Calculate weekly P&L
☐ Review all trades taken
☐ Calculate win rate and average R:R
☐ Identify patterns in wins (what worked)
☐ Identify patterns in losses (what to fix)
☐ Adjust rules if needed
☐ Set goals for next week
THE DAILY CHECKLIST (Print This)
PRE-MARKET:
☐ Mental state check
☐ Economic calendar review
☐ Daily + 4H analysis
☐ Watchlist updated (3-5 assets max)
☐ Alerts set
DURING SESSION:
☐ Wait for alerts
☐ Run Phase 3 checklist when alert triggers
☐ If valid: Calculate size → Execute → Journal
☐ Manage open positions (don't overtrade)
POST-SESSION:
☐ Review the day
☐ Journal any trades
☐ Screenshot setups (taken or missed)
☐ Update watchlist for tomorrow
FINAL NOTES
REMEMBER:
-
Patience is everything. Wyckoff setups don't happen every day. Waiting for valid setups is part of the strategy.
-
The process matters more than any single trade. Follow the phases, use the checklists, manage your risk.
-
Losses are normal. Even the best traders lose 40-50% of trades. What matters is that winners are bigger than losers.
-
Review and improve. Your trading journal is your teacher. Every trade is data to learn from.
-
Protect your capital. You can't trade if you blow your account. Risk management is survival.