UNSCRIPTEDFX

The purpose of this educational material is to introduce you to our way of trading. In fact, our
way of trading is essentially based on the risk: reward ratio. So, in order to optimize our ratio,
you have to have a big take profit, while not necessarily. Let me explain, keeping this same
take profit, to optimize the ratio, it suffices to reduce its exposure to risk (Stop Loss). The way
we trade is based on the concept of smart money.

Our basis of approach is particularly based on imbalances (aka inefficiencies), OB (aka SC)

Order Block (aka SC or OB) : It is a bearish candle followed by an impulsive bullish candle,
which clears highs or bullish candle followed by an impulsive bearish candle which clears lows.
Clearing highs and lows mean that liquidity has been grabbed and which explain the strong
move.

OB area
OB’s can be found almost everywhere, but the price will not necessarily play the OB in
question, that's why all this must have meaning. Let me explain, there is an OB only
when liquidity has been taken. There must be a strong opposite movement for the OB
to be valid and the OB must be particularly large in terms of body-wick ratio

We can set up our area around the OB or place our fib on the size of the OB candle to
take the 50% of the fib level. As for the Stop Loss, we will place it above / below the
OB targeting low equals or high equals on an intraday basis.

To increase ratio, we will rather play the 50% of every OB.

We place our Stop Loss below the OB.

Equal Highs (EQH) = resistance where price hit many times and where liquidity is
sitting

Equal Lows (EQL) = support where price hit many times and where liquidity is sitting.
If there’s EQH above our OB. The setup would be risky to play as price can continue
to go up to take out EQH (Liquidity).

If there’s EQL below our OB. The setup would be risky to play as price can continue to
go down to take out EQL (Liquidity).

If price goes through the 50% of the OB, this usually means that price isn’t ready to
fly/fall. That’s why we have tight SL to maximize our Ratio and not be in drawdown
when we know that price isn’t ready as it didn’t play the 50% or the OB area.

Imbalance (Inefficiency) : Imbalance is the void between wicks. It means that there’s
a skip in liquidity which is inefficient for price. Our setup will be waiting for price to come
back at that imbalance to fill it. Same as OB, we mesure the 50% fib level of the
imbalance to maximize our Ratio.

Warning : price might not play our exact 50% average. If we do use limit. Be sure that
you put 1-2 pips below/above the OB or Imbalance
Imbalance played out perfectly. 1:22 RR

1:15 RR setup

This inefficiency makes sens, because we didn’t have OB above, or EQH. We caught
the trend, which was bearish.

If you see inefficiency, and above there’s an OB. We would rather look for price to play
our OB rather that our inefficiency. We don’t know if price would play one instead of
the other one. That’s why we have to put the odds on our side.

This style of trading allow us to get super tight SL, that’s why we don’t trade when
there’s news, Interest Rates, FOMC or NFP, because there is volatility and price could
push momentum to lose trades.

To maximize our odds for price to play our OB or imbalance, We have to find
confluences, at least 2 of them. Let me explain, If I only do see an OB on H1 and not
on other TF M30, M45, H2, H3 and H4. Price might not play it. But if we do have an
hourly OB and a M45 OB, then the OB is valid, in other cases, it is invalid.

When there’s heavy momentum coming to our setup, we don’t play the setup because
momentum could push through our setup and lose our trades
Warning : sometimes we may miss trades just because price didn’t come at the 50%
of the OB, that’s why, you can draw an OB area where you can look for entry to. Putting
SL under the OB area like on the US30 trade at the first page.
In this example, which was GBPUSD (sent to the team). Price did take out previous
EQL. We have had our shift in market structure, where we will be looking for buy
opportunities. Price did play the OB, even the 50%. Furthermore, our main Target was
the inefficiency, and the second one, the EQH above where inefficiency resided too.