Continuing on from Part 5 - NOTE: You will need to have watched all prior TPO lessons, as well as Footprints and Volume Modules to fully understand this lesson.
DD Setups (Double Distribution) have a strong win rate with an easier process to set up.
Ledges are two more TPO blocks at the same price, they are the same as a Poor High and Low, that for in the middle of a TPO chart (visual examples are provided in this lesson).
Ledges should be used as S/R levels within TPO charts.
IMPORTANT NOTE: This strategy is for day traders.
Time Stamps
2:15 – LEDGES
- Ledges are the same as poor highs and poor lows but formed inside of the TPO chart
- Two or more TPO blocks at the same price create a ledge
- They are used as S/R in TPO charts (day traders)
- If a ledge is formed in a day with more than 4 TPO blocks at the high/low and the price rejects, when price revisits that ledge, one would generally expect the price to break through on the next attempt (or SFP)
- Besides this one can be monitoring CVD divergences, OI, delta and volume on the retest
9:50 – DOUBLE DISTRIBUTION SETUP
- It occurs when the price gets acceptance into a larger row of SPs between two distribution profiles
- Double distribution can occur on the same day, the next day or up to one week after
- Once you see the acceptance into SPs you look to trade it to the other side of SP’s
- The type of trade you are offered depends on the amount of SPs (can be scalp/day trade or swing trade)
- When Daniel sees acceptance into a SP double distribution setup, he never shorts (on the way up) and never longs (on the way down)
- Double distribution is a typical short squeeze setup
- The reason for this set-up working is the drop to cause SPs which happens so quickly that no S/R levels are built up
29:26 – SUMMARY
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