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Mastering Market Retracement Strategies

The document outlines strategies for trading, focusing on understanding market movements, support and resistance levels, and the importance of candle patterns. It emphasizes the need for confluence with higher timeframes, proper entry timing, and recognizing when not to enter trades based on market conditions. Key concepts include identifying strong tops and bottoms, using filters and triggers for retraction, and managing emotions during trading.

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0% found this document useful (0 votes)
13 views9 pages

Mastering Market Retracement Strategies

The document outlines strategies for trading, focusing on understanding market movements, support and resistance levels, and the importance of candle patterns. It emphasizes the need for confluence with higher timeframes, proper entry timing, and recognizing when not to enter trades based on market conditions. Key concepts include identifying strong tops and bottoms, using filters and triggers for retraction, and managing emotions during trading.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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HOW TO GET OUT OF 0X0

STOPPING DOING 50/50 ENTRIES

STRONG RESISTANCE, 2 H1 CANDLES.

(HIGH MICRO BEING FORMED)

- STOP IS FOR OPERATING AND THERE ARE PEOPLE WHO KEEP USING IT:

FORCE ENTRY DUE TO WEATHER OR EXTERNAL FACTORS.

YOU ARE PROGRESSING, BUT LACK CONFIDENCE:


LOOKING AT THE OPERATION AND BEING AFRAID TO ENTER

BELIEF IN DESERVING

FEAR OF NOT BEING ABLE TO CONTINUE, EMOTIONS DURING THE OPERATION.


IF YOU KEEP DOING THE RIGHT THING, IT WILL WORK OUT!

BROKEN ROUTINE:

EX: DEFINE ROUTINE, STUDY SCHEDULE, OPERATE, MEDITATE, EXERCISES ETC...

SUPPORT AND RESISTANCE:


EVERYTHING IS TOP AND BOTTOM!

THE MARKET MOVES BY MAKING HIGHS AND LOWS.

YOU MUST IDENTIFY AND UNDERSTAND THE CURRENT TREND.

UNDERSTAND THE STRENGTH OF EACH ONE AND IN WHICH YOU SHOULD OPERATE:

CHECK THE STRONGEST HIGHS AND LOWS, AND IF THERE IS CONFLUENCE WITH H1 CANDLE AND LINES OF
TREND.

THE MOST DISTANT POINTS ARE ALWAYS THE STRONGEST.


PERFECT REGION FOR RETRACTION

FIRST UNDERSTAND THE MOVEMENT AND THE FORCE OF HIGHS AND LOWS

Movement of tops and bottoms, identify strong tops and bottoms, operate strong movements,

UNDERSTAND THE NECESSARY AMOUNT OF TOPS AND BOTTOMS

At least 2 tops or 2 bottoms, enter on the 3rd TOUCH

Confluence setup with trend line does not require 2 tops or 2 bottoms

UNDERSTAND THE DISTANCE BETWEEN HIGHS AND LOWS

Do not enter nearby regions, more distant areas are stronger for retraction, the greater the distance.
among the areas, the greatest is the strength of it.

Enter for retraction until 2:30 Min

UNDERSTAND THE CONFLUENCE WITH H1

Top and bottom regions should converge with H1.

Do not enter at just 1 H1 top, always 2 tops or 2 bottoms confluencing with H1.

Just one H1 top is not strong enough to retract in an M5 candle, the best scenario is to wait for the false.
breakage.

STEP BY STEP ON THE GRAPH

Identify lateral market


Identify support and resistance with 2 tops or 2 bottoms
Analyze possible confluences in the region
Analyze macro and micro trends
Analyze the distance from the tops and bottoms
Retracting time up to 2:30 minutes
FILTERS AND TRIGGERS FOR RETRACTION

DIFFERENCE BETWEEN FILTERS AND TRIGGERS:

FILTERS (NECESSARY TO ENTER THE OPERATION)

LATERAL MARKET / MARKET IN FAVOR OF THE MACRO


OPERATE FROM TWO STRONG ZONES
THE TWO CANDLES BEFORE THE TOUCH MUST HAVE RETRACTION PEACE
UNDERSTAND THE SAILING MOVEMENT
TEMPO DE TOQUE CORRETO: ATÉ 2:30 Min (ATÉ A SEGUNDA VELA DE M1)

TRIGGERS (RAISE THE HAND)

TREND LINES

RETRACTION STRATEGY

UNDERSTAND THE QUADRANT

EACH QUADRANT IS A M15 CANDLE


ANALYZE THE M15 REVERSAL, AND DO NOT ENTER THE OPERATION

HOW TO OPERATE?

UNDERSTAND THE STRATEGY (RETRACTION ON THE 3RD CANDLE OF M15)


HOW TO ESCAPE THE LOSS THROUGH IT (ANALYZE THE M15 REVERSAL)
MANAGEMENT TIP FOR HER (RAISE YOUR HAND WHEN THERE ARE CONFLICTS)
M15 CANDLES MUST HAVE PAVIO (LAST TWO CANDLES)
HAND, DON'T GO BLIND FOR IT! (DON'T GET STUCK OPERATING ONLY ON THE 3RD CANDLE OF M15)

OPERATIONS IN PRACTICE
RETRACTION IN THE 3RD M15 CANDLE (TRIGGER) INCREASE THE HAND
STRONG BACKGROUNDS AND SETTINGS

CONFLUENCE WITH TREND LINES


CANDLES LEAVING PAVIO, M5 AND M15

IMPORTANCE OF LONGER TIMES

M15 – 15 MINUTE CANDLES


WHAT TO CHECK? (ANALYZE M15 REVERSAL AND WICKS)
WHenever the wick is half the size of the body of the candle, it is not a reversal candle.
DO NOT ENTER CLOSURES DEH1
ANALYZE REVERSION DEM30
M15 and M30 candles must be stretched, do not enter their reversal.
WHERE NOT TO ENTER RETRACTION

When the graph is not correct


When the candles show reversal or movement of strength
When played outside the correct time, up to 2:30 minutes
When the market accumulates near the region
When larger time frames are reversing (M15 M30 and H1)
When the sail is very slow

REVIEW AND RETRACTION QUESTIONS

OPERATIONAL SUMMARY

2 TOPOS/ BOTTOM (SIDE MARKET)


ENTER ON 3rd TOUCH
NEARBY REGION
CONFLUENCE WITH H1
CANDLE WITH RETRACTION MOVEMENT
TIME UNTIL 2:30 Min
PREVIOUS WICKS LEAVING CLEAR
ENTER IN FAVOR OF THE MACRO TREND
USAR CONFLUÊNCIA COM LINHAS DE TENDÊNCIA
CHECK HIGHER TIMEFRAMES, (M15, M30 AND H1)

DO NOT ENTER WHEN:

SAIL HAS BEEN REVERTING (M5, M15, M30, AND H1)


HIGHER TIMEFRAMES HAVE BEEN REVERSING (M15, M30 AND H1)
WHEN TOPS OR BOTTOMS ARE NOT WITH WICKS
PREVIOUS WICKS ENDING FULL (SHOWING STRENGTH)
SLOW SAIL MOVEMENT
ACCUMULATION NEAR THE REGION
WHEN ONLY 1 TOP OR BOTTOM
FALSE BREAKUP

PERFECT REGION FOR FALSE BREAKOUT

Every strong region for retracement will also be strong for false breakout.
Distant region (1 top or 1 bottom) will also be strong
Distant region with more peaks and valleys will be strong
Beware of nearby zones, they are weak.

Distant regions are always stronger


At least 3 hours of distance between the peaks or bottoms (If there is only 1 peak/bottom)
If it is a good area for retracement, it is also good for false breakout.

FILTERS AND TRIGGERS

FILTERS (NECESSARY TO ENTER THE OPERATION)

Sideways market / market in favor of macro peaks and distant bottoms


Distant topos and bottoms (at least 3 hours between touches)
% of the candle breakout (40% to 70% of the body of the candle)
Check the breakout on m1 (breakout with more candles in favor of market strength)
Correct movement of the candle (candle retraction movement, candle peak)
Touch time (up to 2:30 min)

TRIGGERS (RAISE HAND)

Attention to previous candles that may be of strength or reversal (going back to the channel)
Patterns that indicate the price may reverse (DOJI)
Accumulation (candles side by side, before the breakout)
Trend lines (confluence in favor of the trend)

STRATEGY FOR FALSE BREAKOUT


EVERYTHING IS BASED ON THE QUADRANT

Understand the strategy (Take false breakouts in the first and second candles of the quadrant)
The movement of the 2nd candle is to pull the price.
The first candle is also excellent, it aligns with the breakout in M15.
In the 3rd candle, it is necessary for the first candle to break, and the second to reverse. The entry in the 3rd candle is in favor of M15.

Tomar cuidado quando M15 nascer longe da região, o pullback na 3º vela pode ser a retração de M15
M15 must be close to the zone
Enter only in the 1st OR 2nd CANDLE!!!

Every time you enter the operation, always look for any reason to incur a loss, never enter without it.
operation (analyze the possibility of the price going against your analysis) what filters go against your analysis!
Entry on the 3rd candle should converge with retracement (M15 STRETCHED)

WHEN NOT TO ENTER INTO FALSE BREAKUP

The graph is not correct (weak tops and bottoms, (near))


When the body percentage at the rupture is not ideal
When the breakout in M1 did not show strength (candles side by side)
When it hits the third candle and does not coincide with the retracement in M15 (M15 retracement)
When it sounds out of time
When it is not within the 3 movements (reversal, born outside the M15 zone)
Do not enter when it is the 3rd candle (Only when it is a retracement on M15)

DOUBTS

CORRECT ZONES
CONFLUENCES THAT HELP
CANDLES THAT INDICATE FALSE BREAKOUT
Sails of the Break
HOW TO ANALYZE IN M1 (BREAKOUT MUST HAVE AT LEAST 2 CANDLES)
HOW TO USE THE QUADRANT CORRECTLY
1 distant zone, 2 H1 zones near or far, 1 zone near and one distant
Side graphic, tops and strong bottoms or confluence with macro and trend lines
OPERATIONAL SUMMARY

Distant places and backgrounds (at least 3 hours)


Breakage of 40% to 70%
Break of at least 2 candles in M1
Wick
Time until 2:30 minutes
In favor of the macro trend
Enter in 1st or 2nd sail

M5 + M15

Any strong region for retracement and false breakout will also be strong for this operation.
After analyzing in M5, check in M15 the movement of the candles.
Why should it be in strong regions? (M15 must have a wick)

UNDERSTAND THE OPERATIONAL

Everything is based on the quadrant! Master it. (The second candle must lock in the region, arrive outside of time)
for retraction) then you should enter for retraction in M15.

FILTERS

Check the region (At least 2 previous peaks)


Check the previous M15 candles that must have wicks (last two candles leaving wicks)
The second candle of the quadrant is in the zone in the final seconds (The candle must hold in the zone in the final seconds.
final) or last candle of M1 within M5.

TRIGGERS

Trend line

OPERATIONAL SUMMARY

Strong top and bottom regions, sideways market.


Previous candles leaving a wick
The second candle should trap in the zone in the final seconds, in the last 30 seconds, last candle of m1.
Confluence with trend lines

DOUBTS

If the M5 candles don't have wicks, can I trade? (yes, only the M15 candles should have wicks)
If it is against the trend, can I trade? (No, favoring the macro is more assertive)
If the first candle breaks, and the second returns to the zone, can I trade? (no, because it is making the movement)
of the pullback
Patterns in M5 do not cancel the entry in M15
If the candle does not end exactly in the region, can I still enter? (no, if the candle breaks the zone the
operational is false break

REVIEW

Zones (If it's good for M5, it's also good for M15) (Two points from H1, or one point from H1 + Trend)
Movement in M15 (If it is not leaving a wick in M5, and M15 is, you can operate normally)
Quadrant (only the second candle should be at resistance, in the final 30 seconds)
Check M15 (It should be leaving a wick, the second candle getting blocked in the region indicates a reversal)
Last 30 seconds (The entry should occur if the candle is stuck in the region in the last 30 seconds)
What if it breaks and comes back? (no, because it is operational for false breakouts)
Confluences (Trend lines, H1 points)

Consolidation
Which time frame should I choose? (Sideways market)
How many touches are needed? (They are candles side by side, regardless of tops and bottoms)
Which type of chart should you choose? (there isn't one, the candles should be side by side)
Operate from the 4th touch

FILTERS AND TRIGGERS

AFTER IDENTIFYING THE CORRECT REGION, FOLLOW THIS STEP-BY-STEP:

The candles should have more wick than body.


The candle's movement should be faster (demonstrating retraction/explosion)
The touch time can be up to 1:30 Min

TRIGGERS

Trend lines
3rd candle of the quadrant (last candle of M15)
Doji + false breakout

OPERATIONAL M5 SAVES FOR CONSOLIDATION


In consolidation, do not look at candlestick patterns, e.g., M15 reversal.
Understand the necessary touches to operate
Filtros – Tempo/ movimento/ pavio/ LT
Quadrant
Patterns

CARES
The candles should have a lot of wick; if there is too much body, do not trade.
If the market tests the resistance for too long, when it returns to support, there is a risk of breaking.

OPERATIONAL SUMMARY

FILTERS
Operate from the 4th touch
Time up to 1:30 Min
Candles with fast movement, showing retraction.

TRIGGERS
Gatlhos (Trend lines / 3rd candle of the quadrant / false breakout)

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