Simple Guide to High Risk-Reward Setups Using Market Context

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Simple Guide to High Risk-Reward Setups Using Market ContextEuro/US DollarSAXO:EURUSDDavid_PerkHey what’s up traders. In this post we are going to look at high risk-reward trades. And I want to keep it simple, because most people overcomplicate this. A high R:R trade is usually nothing more than this: 🎯 You trade a lower timeframe reversal that happens inside the higher timeframe trend. That’s it. You are not guessing tops and bottoms. You are not trying to be clever. You are just aligning context from a higher timeframe, then using a lower timeframe shift to get a clean entry. Why its not easy to take such a trades because it require skill which you can gain only by practicing - Patience. πŸ“ˆ EURAUD We will break down step-by-step this setup. At first it can look complicated but you will find out that we just need to understand market context and we just logically extend the target of what we are doing every time πŸ“Œ1. Define the HTF trend Define the trend by checking where the price is respecting level and where is potential liquidity where the market is heading - Equal lows often gives a clue. We are bearish πŸ“Œ 2. Measure last swing with the Fibo drop you fib to the last swing and measure 50% of it as we can see on the picture below. If we are bearish you do not trade below a 50% pullback. You are looking to trade above the 50% the highs ( liquidity). There you also want to find a key level. πŸ’Š Described above is most important part of trading. It's called Market context. We want to trade our Pattern in that right moment. And here is where many traders make mistakes, they are entering their patterns every time when it occurs without applying right market context. Market context helps us to filter out low probability trades. πŸ“Œ 3. Pattern with right context At this moment when price is tapping in to the liquidity above the 50% of the swing (In other words in premium) we can identify the pattern. For me it's a CLS Candle created by market maker. That is only moment when Im interested doing anything on this specific market. until this moment. I had just my fib and levels and alarms set. πŸ“Œ 4. Then Im dropping lower timeframe Highlighting the CLS range and knowing above the key level above it. Waiting for the manipulation of the CLS candle and creation of the CIOD - Change in order flow In other words order block. Its hourly chart I have seen that this can layout but it took overnight and setup occurred next day in the London session. On the picture below you can see how we could ussually enter Let's zoom out. πŸ“Œ 5. LTF entry in HTF Trend We actually entered lower Timeframe setup in the Higher timeframe trend. Using the reaction on the key level and Relatively small SL from H1 to ride the trend on the daily. So we can extend our target the daily liquidity And here is what we get πŸ“Œ6. Patience As we can see below trade developed extremely well. But it took over 10 days and it's still not in the TP. Would you be able to hold ? 🧩1) Always look for the higher timeframe trend and trade only stop hunts agains this trend, that is not reversals if price still didn't reach HTF Key Level or liquidity and its your best entries. 🧩2) Still stick to your strategy only scale it to the LTF, wait for the manipulation, entry and if you are within HTF trend, extend your TP to the HTF level. If you dont have your patience developed properly yet. You can take partials and keep just a small part of position size to the extended HTF Targets. It will help you build the confidence. I promised myself I’d become the person I once needed the most as a beginner. Below are links to a powerful lessons I shared on Tradingview. Hope it can help you avoid years of trial and error I went thru. πŸ“Š Sharpen your trading Strategy βš™οΈ 100% Mechanical System - Complete Strategy πŸ” Daily Bias – Continuation πŸ”„ Daily Bias – Reversal 🧱 Key Level – Order Block πŸ“‰ How to Buy Lows and Sell Highs 🎯 Dealing Range – Enter on pullbacks πŸ’§ Liquidity – Basics to understand πŸ•’ Timeframe Alignments 🚫 Market Narratives – Avoid traps 🐒 Turtle Soup Master – High reward method 🧘 How to stop overcomplicating trading πŸ•°οΈ Day Trading Cheat Code – Sessions πŸ‡¬πŸ‡§ London Session Trading πŸ” SMT Divergence – Secret Smart Money signal πŸ“ Standard Deviations – Predict future targets 🎣 Stop Hunt Trading πŸ’§Liquidity Sweep Mastery πŸ”ͺ Asia Session Setups 🧠 Level Up your Mindset πŸ›• Monk Mode – Transition from 9–5 to full-time trading ⚠️ Trading Enemies – Habits that destroy success πŸ”„ Trader’s Routine – Build discipline daily πŸ’ͺ Get Funded - $20 000 Monthly Plan πŸ§ͺ Winning Trading Plan πŸ›‘οΈ Risk Management 🏦 Risk Management for Prop Trading πŸ“ Risk in % or Fixed Position Size πŸ” Risk Per Trade – Keep consistency Adapt useful, Reject useless and add what is specifically yours. David Perk