Hinge Anatomy

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Hinge AnatomyE-mini Nasdaq-100 FuturesCME_MINI:NQ1!SidgateFor this to be coherent you must draw these on a 15s chart. TradingView only allows a minimum publication resolution of 15m therefore I cannot accurately draw them for you. APEX SHELF 7/3, 09.38.15 - 09.39.45, 29910 - 29912 1.First accepted shelf after deepest sweep is reclaimed *two closes in same zone = acceptance *three closes = strong acceptance *four+ closes = dominant acceptance 2. Start of compression 3. Hinge's center of gravity FLOOR 7/3, 09.39.15 low 29903.50 1. Deepest sweep that defines the hinge's lower boundary 2. Anchor for apex shelf 3. Reference point for internal reclaim shelf The floor is where sellers stop pressing and buyers start defending. INTERNAL RECLAIM SHELF 7/3, 09.39.45 close 29913.50 1. First acceptance (close) above the apex shelf 2. First sign of possible bullish continuation 3. Sits inside hinge body 4. Fires before lip. This shelf gives: *earlier entries *greater R:R *tighter stops *more precision *more trades Most days I scalp quite a few of these before the lip is broken. LIP & LIP SHELF lip: 7/3, 9.40.15 high 29925.00 lip compression shelf: 7/3, 09.40.00 -09.41.15, 29920.75 - 29925.00 1. Highest accepted shelf formed during compression - 2 or more touches at same level *two highs *two closes *one high & one close Of course, the more highs & closes the stronger the shelf. BREAK BAR 7/3, 09.42.30 1. First bar to close above lip 2. Initiative Order Flow 3. Directional Expansion The door swings open on its hinge. Caveat: To be correctly named Scenario-1 or Scenario-2 trades, the lip must be broken. Heretofore I have mislabeled the internal reclaim shelf as the lip. I have done so due to the limitations of charting 15s bars on a 15m chart and, before I am a publisher, I am a trader. These setups happen fast. I often do 100+ trades/day. When I post I take shortcuts. In the future I will be more accurate with terminology. The correct name for most trades I do is Pre-Scenario-1 or Pre-Scenario-2 Trades. I prefer the name Internal Reclaim Shelf Trade. Most traders see chaos at the Open. Professionals see micro-hinges. Micro-hinges are the difference between: *chasing volatility and trading structure *guessing direction and reading direction From this chart you can see: IF you had traded this 7/3 holiday hinge (using the suggested stop) THEN you would have had many successful scalps. The NY Open is the most structurally violent time of the 24-hour cycle. This is where this plan shines. It was created precisely for this. It works for bulls & bears. Just as a door turns on a hinge, price turns on a hinge. Correct Mechanics + Correct Logic = Correct Trade Practice + Patience = Payoff