Theta trade rules:

Type of setup: SH, MSB, RTO

. Stop hunt, market structure break, Return to OB

1. When you open your chart what do you look for? Liquidity. Look for old highs or
lows, eql highs/lows. Have they been breached? if so where is the next old high or
low that price is targeting, or the OB price will likely retrace too.
2. HIGHER TIME FRAME analysis. Absolutely key, weekly and monthly order blocks
price will come too, you then refine these to daily and 4h ORDERBLOCKS. Old highs
and lows price will likely take out.
3. GO with the Order flow of the market. Find the flow of price. Higher lows higher
highs. Or lower lows and lower highs. Essential to your trading to avoid you getting
stopped out of many trades using these exact rules.
4. Now for this trade setup- once you see a stop hunt- breach of old/equal high/low.
5. Wait for a BREAK OF MARKET STRUCTURE. (MSB) why? So you know smart money
are backing that trade. This is in the form of a low being taken out for a short setup,
this will form a lower low, break of structure. Vise versa for longs.
6. Then draw out your bearish OB before the down move for sells.
7. Wait for price to return into that OB, once It does EXECUTE.
8. Stop loss placement- ideally should be at the stop hunt high. Why? Smart money will
defend that level from their short entries. This means your stop unlikely to be hit.
9. At times okay to place stop at ORDER BLOCK high for sells with extra confluences on
setup, but beware you could get stopped and the trade still valid.
10. TP placement will be either at an old low or a few pips below. However this depends
on the setup and how long you expect to hold it for.
11. Now to add confluences to this setup.
12. Use AMD and your sessions. Distribution will tend to kick in during the new York
session 12-5 pm gmt time. High or low of the day will likely be from 7-10 am for
London session or 12-2 gmt. Use this to add to your setup for further confidence
going into the trade.
13. A stop raid is further confirmation to enter. This is when price forms a high on 15
min or 1h time frame and takes that high out. This a form of breach of liquidity. Use
this as price is inside the order block along with your trading sessions. For sell setups
same thing but other way around for longs.
14. Now Rinse and Repeat this. Staying strict to these rules. Repetition- the biggest
factor contributing to your success in the markets and life.
15. Practise this, over months you are able to spot these setups with ease, execute and
slay the markets.
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