🔮Onsens FX Algo
This is the Manual for the Onsen FX Algo
Examples
1. Previous week low:
Most liquidity is accumulated above or below the daily, weekly, etc. highs or lows. Rejecting those levels means in most cases banks grabbed those liquidities.
2. Daily ADR:
An easy way to interpret this- is to find daily premium or discount prices. Each asset has an average range of movement from daily to yearly. If the price trades higher or lower than the ADR, it means institutions will seek discounts.
3. Exhausted candle:
Panic sells or buys in the market by mainly small participants. This often indicates reversal because institutions will protect their money. 4. Previous high breaker (engulfing): If our bias is bullish, then we will buy when the previous high is violated. In this case, it engulfs the exhausted candle (4). Notice that the price is rejected twice from the round number, 0.77000.
Gold - Trade Example
Gold Long: Exhausted volume below weekly low and at ADR. So, possible pullback. Asian session continues to stop hunting as Volume Delta shows divergence. Bellcurve is also showing a similar bias.
GBPUSD Long - Trade Example
Price trades below previous week's low and rejected twice Grabbed liquidity from yesterday's low & also the weekly low Exhausted candle at rejection level Volume negative volume is fading (typical breakout traders fall into this trap, but institutions are clearly showing bullish sentiment)
AUDCAD H1 Short - Trade Example
Price traded above the previous week's high (liquidity run)
On Tuesday, the market was above the daily ADR in the London session, so a possible reversal in the NY session
Exhausted Volume in NY opening hour
Volume Delta is showing weak positive volume, so a bearish divergence
Trend strength is also overbought
CADJPY H1 Long - Trade Example
One of the easiest setups for this week
Price went both weekly and monthly ADR! (a very rare occasion for the first week of the month)
At a monthly ADR low, sellers are absorbed by the buyers. Look at the NY session.
Volume Delta negative volume is fading out.
Gold session Long & Liquidity Run - Trade Example
In the whole week, the price never traded above or below the weekly highs or lows. The market was only working on the daily levels (good for session trading).
Price runs through the weekly and daily liquidity
Covers the daily ADR and rejects strongly
A pin bar at the key level
Entry 1:
After closing the pin bar at 1230 London
Entry 2:
Bullish engulfing at NY opening hour
Any of those entries will be valid as long as the market holds this bullish sentiment.
Econometry Projections
For those who are interested in my econometry projections here is a good paper for understanding market volatility. I can share more papers gradually.
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