Deep Dive: Trade the Sequence

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Deep Dive: Trade the SequenceMicro E-mini Nasdaq-100 Index FuturesCME_MINI:MNQ1!SidgateThree Layers: 1. Auction logic 2. Scenario validation 3. Entry protocol Refined version of "Trade the Sequence" 1. Auction Logic *A. IF sweep THEN reclaim **a. sweep = information i.e. buyers entered **b. reclaim = decision bar **c. no reclaim = no trade *B. IF reclaim THEN hinge **a. reclaim proves sellers failed **b. hinge = compression **c. no hinge = no structure *C. IF hinge THEN break **a. break indicates direction **b. break validates the scenario **c. no break = no trade *D. IF break THEN trade setup is valid **a. break must close above the lip **b. break must show displacement 2. Scenario Validation *A. Validate the scenario before trading the sequence **a. is it Scenario-1 (S-1)? **b. is it Scenario-2 (S-2)? **c. is it Scenario-3 (S-3)? *B. Break quality **a. break MUST show displacement **b. reclaim bar is NOT a break bar *C. Shelf integrity **a. shelves must remain intact **b. if shelves break the sequence resets 3. Entry Protocol (hierarchy) *A. Primary entry = lip pullback **a. most reliable **b. highest R/R **c. cleanest continuation *B. Secondary entry = lip shelf **a. slightly weaker **b. still valid **c. works best in Scenario-1 (S-1) *C. Tertiary entry = apex shelf **a. only valid when apex shelf is tight **b. works best in Scenario-3 (S-3) Scenario-1 (S-1) BTO requirements 1. Sweep Order (the structural requirement) *A. First there must be a buy-side sweep **a. during Globex session - 18.00.00 - 19.59.59 **b. during Asian session - 20.00.00 - 02.59.59 **c. during London session - 03.00.00 - 05.59.59 **d. during NY ETH session - 06.00.00 - 09.29.59 **e. at the 09.30.00 Open or shortly thereafter **f. Can be shallow **g. does not require a high-top wick **h. sometimes has no wick at all 2. Second there must be a sell-side sweep *A. S-1 hard time rule **a. must happen at 09.30.00 **b. must happen no later than 09.45.00 *B. Can be shallow or no wick at all 3. Hard time rule: 09.30.00 - 09.45.00 *A. 09.30.00 - 09.45.00 **a. volatility is highest **b. sweeps are shallow **c. reclaims are fast **d. apex shelves are tight **e. lip shelves are tight **f. breaks are explosive *B. 09.45.01 = S-2 IF you find this beneficial THEN please check back. To this post will be added in the "add note" section: 1. OHM Scenario-2 (S-2) requirements 2. OHM Scenario-3 (S-3) requirements Deep Dive Focus: In-depth look at one concept Daily Focus: Overnight sweeps, key PX shelves, OHM scenarios, hinge/break trade setups Teaching Principle: Correct Mechanics + Correct Structure + Correct Logic = Correct Trade