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HCSN

The document discusses advanced trading concepts, particularly focusing on High Confirmation Setup Negation (HCSN) and its significance in identifying market direction. It provides examples of trade setups, emphasizing the importance of analyzing higher time frames (HTF) and lower time frames (LTF) for effective entry models. The author encourages thorough analysis and understanding of market manipulation to enhance trading strategies.

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Faruq
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55 views

HCSN

The document discusses advanced trading concepts, particularly focusing on High Confirmation Setup Negation (HCSN) and its significance in identifying market direction. It provides examples of trade setups, emphasizing the importance of analyzing higher time frames (HTF) and lower time frames (LTF) for effective entry models. The author encourages thorough analysis and understanding of market manipulation to enhance trading strategies.

Uploaded by

Faruq
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
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HCSN - High Confirmation Setup Negation

For those of you more advanced in the concepts of manipulation this reference shall serve
you well. Remember if you are not certain manipulation has occurred it has not.

We will begin by going over some examples over the past week..

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Now in this example on the 15m TF the story is quite clear - att FU completed whilst
forming a negation and the retest of the FU wick. Yet that is not all… and if you look
back on this day you will see plentiful confirmations on HTF and LTF. I recommend you
do your own analysis on this day..This trade resulted in 600 pips.
Now there is one very powerful confirmation in my personal experience; the HCSN, N:
negation. When you see this confirmation on a HTF it will be a very strong sign of true
direction.

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In this example above we see the following day (Oct 8) of the previous example. This is a
6H HCSN forming a 6H HCS, labeled with the blue arrow. Notice the HCS that formed
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to the upside prior to the negation. This is seen on the 4H as well.

A LTF HCSN that aligns with the HTF is a very solid entry model. A 15-30m HCSN can
be seen almost on a daily basis. Remember the basis of TF strength… a 15m HCS needs
at the very minimum a 30m FU to negate - calculate liquidity to decipher those odds.

Now if you understand all that has been said above, you may continue, or reread and do
your own analysis until any conflicting doubt is washed away, and most importantly
enjoy the process of putting the pieces of the puzzle together. You will find a unique
pleasure in doing so.
Advanced Model
The algorithm may sometimes not be so clear in showing its hand of cards. But
fortunately you have something the algorithm doesn’t have… a brain and a 6th sense of
intuition.

There may be moments where price “hides” the HCSN. This will be easiest shown with
an example using the above 6H HCSN high but on a LTF.

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This is the high of the 6H HCSN on the 15m forming a 15m negation. Whilst the
negation is enough conviction we may refine further to understand the strength of the sell
to come.
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On the 3m we see the 15m FU to the upside was created by a 3m HCS…Forming a 15m
“Hidden” HCSN

Let’s look at some more examples from October 14:


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Notice on the chart above the 30m negation forming a bearish HCS - yet what lies behind
it… let’s calculate its liquidity beginning from the 30m FU low to the upside.

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The blue arrow marks the low of the 30m FU to the upside - let’s look at what it retested
to the left..

A perfect 1m FU retest marked by the blue


arrow. Now let's take a step back and put
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the pieces of the puzzle together thus far.

Price formed a 30m FU to the upside,


which began with a 1m FU retest. Price is
currently in the right “area” to negate with
the next 30m to form a bearish HCS &
“hidden” HCSN (due to the 1m FU retest
low) - we keep this in mind and most
importantly wait for a LTF entry model.
Yet before we continue this needs to be understood as it plays a crucial role in the bias of
why sells were expected and I am certain some of you are thinking as to why price
wouldn’t continue higher to take the 30m doji from Frankfurt high shown below with the
red arrow. The answer - it was manipulated.

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See below; FU wick retested with the following candle. Right before the push lower price
formed a HCSN whilst also forming a bearish HCS. Highly manipulated high… No
reason to target, further sells to anticipate with the NY session.
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Now after calculating liquidity we have analyzed that the 30m doji is to be left behind
due to its manipulated high - the story now decrypted and the 30m negation to form a
bearish HCS clear. A LTF entry model only required.

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Show above; 1m bullish HCSN forming a bearish HCS creating the 30m negation HCS
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high - 1H SCN. All pieces of the puzzle aligned. Cards shown..

Opportunities are plentiful. Do not succumb to greed and recklessness. Be methodical


and disciplined. Remember, luck is when preparation meets opportunity.

Godspeed - Mr. P

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