Notes
- In this lesson, Michael shows the way to trade the Asian session.
- Street Smarts: High Probability Short-Term Trading Strategies is the book that helped Michael understand stop hunts.
- If the NDOG is less than 20 handles (points), Michael does not need to plot its consequent encroachment (midpoint).
- If the price moves down and fails to touch the midpoint (consequent encroachment) of a bearish FVG, it is a sign of weakness, and we can expect another move lower.
- If the price moves up and fails to touch the midpoint (consequent encroachment) of a bullish FVG, it is a sign of strongness, and we can expect another move higher.
- Journaling and annotation are essential for beginners to study and recognize patterns before actively trading.
- Bias can be applied across different timeframes. For example, daily, session, or hourly bias is often used.
- If the price has been expanding all week in one direction, then we can likely expect a TGIF setup to develop on Friday.
- The Dow Jones index is less reliable for divergence analysis because it consists of only 30 stocks. For this reason, the differences between the NASDAQ and the S&P 500 are more significant for decision-making.
NQ - Bullish Order Block, Measured Move And Breakaway Gap
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