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Prediction - Understanding HTF Direction

This document discusses understanding high time frame (HTF) directional biases to identify trading opportunities. It provides examples of strong highs and weak highs on charts and explains how to identify the most probable sell zones. Specifically, it recommends looking for sell setups above strong highs identified on the 4-hour or 1-hour time frames, which are supported by price action like liquidity zones, question marks, or bullish market structures on lower time frames. The document emphasizes waiting for price to reach potential sell zones and analyzing lower time frames before entering trades to trade safely within the daily bullish bias.

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

Prediction - Understanding HTF Direction

This document discusses understanding high time frame (HTF) directional biases to identify trading opportunities. It provides examples of strong highs and weak highs on charts and explains how to identify the most probable sell zones. Specifically, it recommends looking for sell setups above strong highs identified on the 4-hour or 1-hour time frames, which are supported by price action like liquidity zones, question marks, or bullish market structures on lower time frames. The document emphasizes waiting for price to reach potential sell zones and analyzing lower time frames before entering trades to trade safely within the daily bullish bias.

Uploaded by

Rui Almeida
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

Prediction + Understanding HTF

direction

So here on daily we can see a strong low and weak high example on chart, realistic
draw and simple drawing.

Prediction + Understanding HTF direction 1


So here we can see price can swept liquidity and go, without going to the extreme
zones.

So before speculate sells we need to understand what a buyer would see in the form
of strong highs and strong lows.

So here Im a buyer, what am I see? Strong low, weak high and liquidity taken and if I
bought extreme, where is a buyer going to liquididate his positions?
Is going to liquidate it above this high or this high? So we take partials at each high.

Prediction + Understanding HTF direction 2


If we know this is a weak high, why take partials on this high?

Prediction + Understanding HTF direction 3


So on 4h we can see we have here a strong high, so is fine for us to look for sell in
here. But before I look for a sell, first of all we are looking at an 1m setup.

This is a 4h POI, its not primarily an 15m, it starts off on the 4h, its not on daily either
and I would like to see something like an 5m/15m/30m mitigation and qm, so I would
love to see that before look for sells.
So Im looking for sells here and above here.

Prediction + Understanding HTF direction 4


Now this first high here is less probability than next one, because this first one is
liquidity (EQH) for next one, because the next one is strong high.

Here we can see on 1h a perfect qm and price return and boom sell. Now this new
high is not good enough as previous one.

Prediction + Understanding HTF direction 5


So I will look for sells on those areas here. So the bottom is because is 4h/1h strong
high. And if I was stoped out from bottom one, why not took the above one?
So why the top one? Because we have this 1h qm as well induced by liquidity, and
sh + bms.

Prediction + Understanding HTF direction 6


Lets say if price doesnt come back to one of this 2 zones, and is not recommended
to over refine.
So the ideal is to observe what structure is broken on price is now.

Prediction + Understanding HTF direction 7


So for example we can go to 15m and lets say price bms like this and create a 15m
qm, and this can be a reason for price not come to our zones.

Prediction + Understanding HTF direction 8


If we wanna trade safe, we wait for price tap in our POI and see on ltf what price
does. So the sells from that POI need it to be short term, because we are very
bullish on daily.

Prediction + Understanding HTF direction 9


For the BMS be strong and high rate needs to have a SH before!

Prediction + Understanding HTF direction 10

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