In this video, Rivalry shares his personal playbook setups for divergence plays and VWAP traps, focusing on index trading. He emphasizes the importance of understanding tier levels, one-time framing, and delta trends to identify high-probability trades. Rivalry also stresses the significance of taking profits and managing trades based on market structure.
Timestamps:
- [00:01:18] Introduction to Rivalry's Playbook Series Part 2, covering utility, implementation, and tips & tricks.
- [00:01:50] Divergence plays on indexes:
- Consider PDPA, PDVA, and one-time framing levels.
- Understand initiative and responsive entries based on delta trend.
- Remember the key phrase: "No buys, no highs. No sells, no lows."
- [00:04:07] Divergence plays are essentially reversal plays and should start as a scalp with the potential for a runner.
- [00:05:00] Rivalry explains why he doesn't use CCTR on lower time frames and instead relies on the one-minute chart with delta trend.
- [00:07:06] Examples of initiative and responsive entries on divergence plays, emphasizing the importance of targeting low time frame moves.
- [00:18:32] Tips for trading divergences:
- As a reversal trader, your job is to spot the reversal, not time it.
- Be aware of the market context and tier levels when entering trades.
- [00:28:28] Introduction to the VWAP trap setup, a bearish play for both indexes and crypto.
- [00:37:17] Trading the VWAP trap on the 5-minute chart for better clarity and confirmation.
- [00:39:39] Examples of VWAP traps on the ES and NASDAQ, highlighting the importance of market structure and delta trend.
- [00:43:49] Tips and tricks:
- Initiative traders assume the trend is switching prior to confirmation.
- Responsive traders aim to take a piece of the move, not the entire move.
- 30-minute lows and highs are crucial for runners.
- Apply "how to spot a trend" techniques with trade management.
Remember to submit your questions for the upcoming livestream Q&A session via Discord. For additional help, visit the training help form in Discord.