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1 Rectangle Setup

The document outlines a trading strategy centered around the use of rectangles to define entry zones, stop losses, and take profit targets. It emphasizes trading with the trend, identifying market weakness through wick rejections, and following a strict execution process for high-probability setups. Key rules include prioritizing quality setups, aligning with market structure, and managing risk effectively.

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0% found this document useful (0 votes)
2 views10 pages

1 Rectangle Setup

The document outlines a trading strategy centered around the use of rectangles to define entry zones, stop losses, and take profit targets. It emphasizes trading with the trend, identifying market weakness through wick rejections, and following a strict execution process for high-probability setups. Key rules include prioritizing quality setups, aligning with market structure, and managing risk effectively.

Uploaded by

Balan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1 Rectangle Setup

Part 01 — The Basics

Part 01

Timeframes, Pairs & Indicators


The Rectangle — Core Framework

Everything in this strategy is defined by one shape: the rectangle. It provides your entry
zone, confirmation signal, stop loss reference, and take profit target — all in one tool.

Entry Stop Loss

Rectangle Beyond Rectangle


Entry is taken around or inside the SL is placed slightly beyond the
rectangle using M1 confirmation. rectangle.

C o n fi r m a t i o n T a k e P r o fi t

M1 Candle Close 3:1 RR Minimum


A 1m candle closing outside the rectangle Outside the rectangle. Target the next
triggers the entry. strong M15 key level.

Ti meframes

M15 C ha rt M1 C ha rt

Key Level Entry

EdgeSkool . N et 02
Part 02 — Foundation

Pa rt 0 2

Foundation

Di rection — EMA (Optional)

Use the 50 EMA or the 200 EMA to lock in directional bias. Price above the EMA

signals long conditions. Price below signals short conditions. Ensure clear structure

exists.

Conti nuation Only

This strategy trades exclusively with the trend. We ignore reversals entirely.

Uptrend D owntrend

Focus on Lows Focus on Highs

Buy setups form at swept lows that reject Short setups form at swept highs that

back above. reject back below.

Highest Prob ability Filters

— Inside Imbalances — Target M15 levels inside a Fair Value Gap.

— Session Extremes — Asia, London, and New York session highs/lows.

E d g e Sk o o l . N et 03
Part 02 — The Trigger

Th e S i g n a l

Strength vs. Weakness

The setup relies entirely on identifying Weakness in the market. You must recognize
Strength
the difference between the two.

Strength — Avo i d for this setup

Candle Closes Through

Price displaces beyond the level and closes outside it. The level is disrespected — do not

trade this scenario. This is a true breakout leading to continuation.

Weakness — Our S etup

Wick Rejection

Price sweeps the level but closes back inside. This wick rejection is the only trigger we

trade. Without it — no entry. This is the fakeout.

Weakness
Rule: No wick rejection on the M15 chart = No trade. Do not anticipate, wait for the close.

E d g e S ko o l . N et 04
Pa rt 0 3 — Exe c ut i o n

Part 03

The 3 Steps Step 1 Step 2

The goal is catching M15 high-probability liquidity sweeps using the M1 chart for
precision. Follow these strictly.

01
01 Mark Valid M15 Level
Identify a high/low on the M15 chart. It must align with the trend and ideally sit
inside an imbalance.

02
02 Wait for Weakness Trigger
Price must sweep past your marked level but fail to close beyond it. This is the M15
wick rejection.

Structure M1 Entry

03
03 Draw Rectangle & M1 Flip
Draw rectangle from trigger candle close to its high/low extreme. Switch to M1 and
enter when a candle closes outside.
Step 3

[Link] 05
Step 03 — D etails

Ste p 0 3 — C o nt i n u e d

Entry & Risk Management


Safe Entry

M1 Ent ry Tri g g e rs

S afest Entry Entry

Wait for M1 Close Outside

A 1-minute candle must close above (bullish) or below (bearish) the rectangle. This is the

immediate signal to enter.

Aggressive Entry

Enter Inside the Rectangle Risky Entry


Optional — take entry as price goes inside the rectangle before closure, IF there is a valid

M1 FVG inside it.


Entry

Stop Loss & Ta ke P r o fi t

Stop Loss Ta ke P r o fi t

Beyond Rectangle 3:1 Minimum

Place SL slightly above/below the Target next key M15 level or hard 3:1 RR.

extreme that formed the box.

E d g e S ko o l . N et 06
Trade Validation

Pre-Trade

Trade Checklist
Run through every step & confluence before placing a trade. All conditions must be met
to ensure high probability.

Direction Aligned Req


Price clearly above/below the 50 or 200 EMA

Valid Structure Req


Clear structural breaks

Continuation Focus Req


Lows in uptrend · Highs in downtrend

Imbalance Filter High


M15 level sits inside an FVG or session extreme

Wick Rejection Req


M15 swept the level AND closed back inside

Rectangle Drawn Req


From close to extreme of the M15 trigger candle

[Link] 07
Non-Negotiables

Reference

Key Terminology
The 3 Rules

Non-Negotiables

These three rules are absolute. Breaking any one of them invalidates the edge entirely. Te r m i n o l o g y Te r m i n o l o g y

Sweep (Fakeout) Weakness


Rule 01 — Quality Over Quantity Price temporarily breaks a key level to A rejection showing price failed to hold
trigger stops, then rapidly reverses. beyond a level. Wick.
Do not enter every weakness setup
Not every liquidity sweep is worth trading. Focus only on high-probability setups that align with
structure, trend direction, and clean liquidity targets.
Te r m i n o l o g y Te r m i n o l o g y

Strength M1 Flip
Ru le 02 — Trade With St ructu re Aggressive movement through a level with The moment a 1m candle closes outside the
strong closes. rectangle, confirming entry.
Align the M15 and 4H direction
The strongest setups happen when both timeframes agree. If the 4H structure is bullish, look for
bullish M15 setups only. Avoid trading against the higher timeframe narrative.
Te r m i n o l o g y Te r m i n o l o g y

Rectangle Zone Session Highs & Lows


Rule 03 — Protect Capital The area drawn from the trigger candle Key levels created during Asia, London, or
close to its high or low. New York sessions.
Risk between 0.5% and 2% per trade
Every trade should have controlled and predefined risk. Consistency matters more than
oversized wins. The goal is long-term survival and compounding, not emotional gambling.

E dgeS kool . Net 08


One edge.

One model.
Learn the Edge Model — a 3-step

universal framework for high R:R

trades.

One model
live trading

Multiple setups
weekly calls

Anytime frame
High RR trades

any session 33+ Hours Training

Join Now
What You

Get Inside.

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