GP- Daily Time Frame Selection Method
1. Trade selection criteria
a. The PA (Ref No. 3 PA - selection criteria) must be formed at a low or high point not
amongst traffic or in a range of a BO (check for angle of preceding PA should be
approx 45 Deg)
b. Must be confluence of 1 or more zones of S/R (fib level, S/R level or MA) (ref No. 2
Cluster zone selection criteria)
c. Check for space to the Left of PA – be very cautious - if not a lot of space go to BE.
early. (Understand the story)
d. Check higher timeframe for price action and major S/R levels
e. Identify first FTA & most likely final target (Final target should be at least 1:1)
f.
If above criteria is met, enter on the daily TF with break of the high / low +/- ATR /10
+ /- ½ of spread.
g. Always move stop to BE @ first FTA or ATR /4 if less than first FTA level.
h. Take profit at first FTA either ½ or ¾ of position.
i.
Manage remainder of position trailing the daily bar or keep stop behind S & R level.
j.
Exit Trade if reversal price action is observed at a S+ R level
2. Cluster Zone Criteria
A Support/Resistance Cluster Zone can include many ingredients, including the
following:
–Up or Down Trend Line
–Horizontal Support/Resistance Line (i.e old highs or lows)
–Round Number
–Moving Averages
–Fibonacci Retracements/Extentions
–Pivots
–Multiple Time Frame S&R
–Symmetrical Projections
–Range Analysis
•The General Rule of Thumb is you want to find 2-3 possible sources of S&R to build your
cluster zone.
GP- Daily Time Frame Selection Method
3. Price Action Selection Criteria