Chapter 12 LEVEL 2 Open Trading AccountAccount বাংলা
CHAPTER 12

Models 11-15: Arrays and Confluence

These models combine several concepts: mitigation, inversion, CE, SMT and AMD. They are your A+ setups.

Model 11 - Mitigation Block Short

When a strong long push fails and breaks down, trapped buyers want to exit at break-even. Price returns to that zone to let them out - and that return is your short entry.
HTF: the mitigation zone in premium, then delivery lower
Fig. 12.1 HTF: the mitigation zone in premium, then delivery lower
TimeframeWhat to look for
4H
Identify the failed long move
1H
Draw the mitigation zone
15m
Confirm premium
5m
MSS and entry

Entry Rules

  1. Mark the zone where the failed long started.
  2. When price returns, wait for a 5-minute MSS.
  3. Short the gap, stop above the zone.
  4. TP1 at the swing low, TP2 at the daily draw.
LTF: MSS inside the zone and the entry
Fig. 12.2 LTF: MSS inside the zone and the entry
LevelDistanceWhat to do
Entry
The zone CE
Limit or MSS confirmation
Stop
Beyond the zone
20-30 pips
TP1
1:2
Swing low
TP2
1:3.5
The draw

Conditions and Invalidation

  • The zone must sit in premium.
  • Best when the daily bias is bearish.

Model 12 - Inversion FVG

A failed FVG becomes a zone for the opposite side. Most traders keep entering it in its original direction and lose; you take the other side.
HTF: the failed FVG now acting as resistance
Fig. 12.3 HTF: the failed FVG now acting as resistance
TimeframeWhat to look for
1H
Mark the FVG
15m
Check for a body close through it
5m
Retest and MSS
1m
Entry

Entry Rules

  1. Locate an FVG that broke with a body close.
  2. On the retest, look for a 1-5 minute MSS.
  3. Enter at the CE of the IFVG.
  4. Target the next pool.
LTF: short on the IFVG retest
Fig. 12.4 LTF: short on the IFVG retest
LevelDistanceWhat to do
Entry
IFVG CE
On the retest
Stop
Beyond the IFVG
15-25 pips
TP1
1:2
Nearest swing
TP2
1:3
The draw

Conditions and Invalidation

  • Only an FVG broken by a body close counts.
  • The first retest is best.

Model 13 - Consequent Encroachment Precision

Entering at the exact 50 percent of a higher-timeframe FVG lets you place a very tight stop and roughly doubles R:R. It is a patience model: if it does not fill, there is no trade.
HTF: the 4H FVG and its CE
Fig. 12.5 HTF: the 4H FVG and its CE
TimeframeWhat to look for
4H
Mark the FVG and its CE
1H
Check premium or discount
5m
Monitor the approach
1m
Limit at the CE

Entry Rules

  1. Draw the 50 percent line of the FVG.
  2. Place the limit order on that line.
  3. Stop 5 pips beyond the FVG.
  4. TP1 at the far edge of the FVG, TP2 at the draw.
LTF: the CE tap and one-minute confirmation
Fig. 12.6 LTF: the CE tap and one-minute confirmation
LevelDistanceWhat to do
Entry
CE 50%
Limit
Stop
Beyond the FVG
10-20 pips
TP1
1:2
Far edge of the FVG
TP2
1:4+
The draw

Conditions and Invalidation

  • Works only on 4H or daily FVGs.
  • If it does not fill, do not chase.

Model 14 - SMT Divergence

One correlated market makes a new high while the other fails. The one that failed is weaker - trade it, but only at a HTF array inside a killzone.
HTF: the divergent high and the HTF array
Fig. 12.7 HTF: the divergent high and the HTF array
TimeframeWhat to look for
Daily
Bias and draw
1H
Compare the two pairs
5m
MSS on the weaker pair
1m
Entry

Entry Rules

  1. Put the two correlated charts side by side.
  2. One makes a higher high, the other a lower high - divergence confirmed.
  3. Wait for a 5-minute MSS on the weaker pair.
  4. Enter the FVG, stop beyond the swing.
LTF: MSS and entry on the weaker pair
Fig. 12.8 LTF: MSS and entry on the weaker pair
LevelDistanceWhat to do
Entry
FVG
After the MSS
Stop
Beyond the swing
20-30 pips
TP1
1:2
Nearest pool
TP2
1:4
The draw

Conditions and Invalidation

  • SMT alone is not a trade - it needs an array and a killzone.
  • Check the spread on both pairs.

Model 15 - Power of 3 (Daily AMD)

The day runs in three acts: accumulation, manipulation, distribution. The daily candle traps one side of the open, then builds its body the other way. It fires once a day, and it is the most reliable of all.
HTF: from the manipulation low to distribution
Fig. 12.9 HTF: from the manipulation low to distribution
TimeframeWhat to look for
Daily
Daily open and bias
1H
Which side is likely to be trapped
15m
MSS confirmation
5m
Entry

Entry Rules

  1. Mark the daily open at 00:00 NY.
  2. Wait for a sweep to one side of the open.
  3. Look for a 15-minute MSS after the sweep.
  4. Enter the FVG, target the opposite extreme of the day.
LTF: 15-minute MSS when manipulation ends
Fig. 12.10 LTF: 15-minute MSS when manipulation ends
LevelDistanceWhat to do
Entry
FVG
After the MSS
Stop
Beyond the sweep
25-40 pips
TP1
1:2
The daily open
TP2
1:4
The opposite daily extreme

Conditions and Invalidation

  • One trade, once a day.
  • Manipulation usually happens in Asia or London.

Educational material only · not financial advice.