Notes
- According to Michael, there is no macro that works between XX:20 and XX:40. This 20-minute interval is fiction.
- Understanding price behavior builds confidence in trades.
- Patience and discipline are key to long-term success in trading.
- Trading is about consistency and avoiding emotional reactions to market fluctuations.
- Michael advises traders to stick to a clear plan and not chase after trades based on fear of missing out. He also stresses the importance of having realistic expectations about profits and losses.
- Relative Equal Highs (EQH) are formed by two swing highs, where the swing high on the right is slightly lower than the swing high on the left. However, if the wick of the swing high located on the right gets slightly above the swing high on the left, but the bodies remain below the left swing high, these are also valid Relatively Equal Highs.
- Relative Equal Lows (EQL) are formed by two swing lows, where the swing low on the right is slightly higher than the swing low on the left. However, if the wick of the swing low located on the right gets slightly below the swing low on the left, but the bodies remain above the left swing low, these are also valid Relatively Equal Lows.
- Real order flow can be seen in the Open, High, Low, and Close of bars. There is no need for extra indicators like book maps, volume profiles, or the depth of the market.
- Focus shifts as price moves away from PD arrays formed on higher time frames. For example, if a trade is based on a 15-minute setup, once the price moves away from the 15-minute PD array, the focus shifts to the 5-minute, then the 1-minute, and so on.
- Failure to touch a potential support level is a strong bullish sign.
- Failure to touch a potential resistance level is a strong bearish sign.
- A high percentage of traders lose money because they follow conventional wisdom and don’t understand true price action and order flow.
- When the price moves back and forth through a range, it becomes a balanced price range. Breakouts of balanced price ranges can indicate significant shifts in market sentiment.
- Mohawk means a slight overshoot of a range.
- Lunchtime often sees retracements against the prevailing trend.
NQ - IOFED Trade Entry Example
NQ Trade Example - Low-Hanging Fruit Target
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