Attempting to self narrate what goes throughout my mind when qualifying & executing a trade.

1: Identify areas you are interested in doing businesses.

First we must identify what the current narrative of the market is, what the current condition is, and where that changes. This will allow us to identify areas that offer solid risk reward and let us find edge in the edges of the market.

Narrative trades contain the following setups:

  1. RPB of PVA (Fading rotational edges of balance back into balance)

  2. BPB of PVA (Playing on a fresh break and shift in condition)

Ideally, your narrative should be confluent on multiple time frames. Market profile level that lines up with weekly medium term rhythm, etc.

2: Identify the Current Market State

This is objective and simply from DVA and what DVA is doing.

CMS must be one of the following:

  1. RPB of DVA (Fading a rotational extreme. Acceptance still within DVA)

  2. IPB of DVA (Pressing a shift in condition. Acceptance shifting to outside DVA)

  3. Advanced RPB (Looking for a failure pattern on DVA to identify a failing imbalance setup.)


3: Rhythm

All trades should be on real and legitimate rotations with clean excess. This means no chasing the move, nor taking a extremely micro shift in condition. Looking for real rotations based off what market harmonics at the time are.

4: Orderflow

We should see strength in the direction we wish to trade. No serious absorption of our direction nor lack of participants in our direction, no need to be the first guy in.

Divergence or other supportive factors is just extra. Simply looking for any red flags to say we may want to hold out a bit longer before entry.