What are your favorite high probability setups?


Mine is a weakaning RSI with an engulfing candle to follow.
I look for the price action to be stuck or to get a fakeout. If this is followed by an engulfing it is (in my opinion) a pretty strong signal to follow the direction of the engulfing.

In the example you can see the last 6 candles prior the engulfing the price is not moving anywhere. This engulfing in addition with the weakaning RSI was the trigger to believe the trend is over and hence to get in the trade.

In addition setup was supported by a downtrend in the 4H chart as well as a rising wedge into a supply zone. Hence the more confluence you have the sweeter the setup is.

Mine is a double top/bottom or equal high/low where the second test is a fake out.

Another setup which i consider is when price is in a downtrend or uptrend and price retest the value area high in the case of a downtrend or value area low in the case of an uptrend. I use the VWAP with standards deviations so VAH is +1 standard deviation while VAL is -1 strandard deviation.

Another setup which occurs somewhat frenquently is when there is a change of polarity and price retest a high volume area. In your chart, there is a good example where price made a low but broke out above a previous area of consolidation. Price made a double touch of the high volume area (previous consolidation).

My fav is a big juicy candle with a strong close above or below the 50 sma on the 30 min or 15 min timeframe. Entry is on confirmation with a retrace of the fvg with little brick renkos. Screenshot below is of replay just for an fyi....


v/r

Johnny

Devil Man 

My fav is a big juicy candle with a strong close above or below the 50 sma on the 30 min or 15 min timeframe. Entry is on confirmation with a retrace of the fvg with little brick renkos. Screenshot below is of replay just for an fyi.... v/r Johnny

What all indicators are you using. Beautiful chart!

@Tikytrades thank you! On that chart I am using Lizard Trader's premium rolling VWAP and ZeroLag Oscillator paint bars but both have my own custom programming.

I like two setups for the current market environment.

Number one is to go short as the market makes a new high for the day. I have found that the risk reward is excellent as the potential moves to the downside are sometimes fast and violent and the moves higher are often lumbering and slow allowing ample opportunity to close the trade if in a loss.

Number two for me is a general 8-12 point(MES points) pull back in a trend that has been actively moving for about 30 minutes to 2 hours. The stop would be roughly 5 points with about 10-12 point profit target.

Devil Man 

@Tikytrades thank you! On that chart I am using Lizard Trader's premium rolling VWAP and ZeroLag Oscillator paint bars but both have my own custom programming.

Do you use your own programming for the chart or the signals by such candles?
I'm thinking about creating a script to search for engulfings in the 1H Chart. If it works then as well for other simple signals.

ThorstenMTB 

Do you use your own programming for the chart or the signals by such candles? I'm thinking about creating a script to search for engulfings in the 1H Chart. If it works then as well for other simple signals.

@ThorstenMTB yes for both. Sounds like you got some work to do! Please let us know what the result is.

v/r

Johnny