This lesson focuses on the concept of "targets" and "mirrors" within the context of trading strategies.
The discussion includes understanding the role of "masters," how they control targets, and the concept of Pandora's box in trading.
Key Concepts
Masters and Controllers
Masters: These are key timeframes which set the parameters for analysis (e.g., daily, hourly).
Controllers: Masters act as controllers by determining the flow and control of targets.
Timeframes: Understanding which timeframe to use is crucial for predicting where a range might break.
Targets and Mirrors
Targets: Represent a hit timeframe on the top and a corresponding target on the bottom.
Requires creating a mirror to proceed with trade entries.
Mirrors: Used once targets are set; essential for understanding trade direction.
Timeframe Compression
Process of moving from higher timeframes (daily) to lower (hourly) within Pandora's box.
Pandora's Box: State where timeframes compress from daily to hourly, indicating potential breakdowns or continuations.
Strategies
Entering Trades
Targets vs. Mirrors: Determine whether to enter based on targets or mirrors.
Targets: Look for target-to-target movements.
Mirrors: Essential for determining whether levels should hold.
Ladder Points and Hold Levels
Ladder Points: Opt for these when a target hasn’t been reached.
Hold Levels: Used once in a Pandora's box scenario; target has been hit and mirrored.
Trade Execution
Enter trades at defined levels, considering where targets and mirrors align.
Using smaller timeframes effectively to find entry points (e.g., 15-minute origins, hourly targets).
Practical Application
Identifying Scenarios
Pandora's Box: Confirmed when mirrored targets exist on both sides, signaling to use hold levels.
Non-Pandora's Box: Absence of mirrored targets indicates searching for ladder points and break levels.
Analyzing Charts
Use replayer tools to visualize timeframe compression and target hits.
Identify where breakdowns occur through time frame analysis (e.g., daily, four-hour, hourly levels).
Conclusion
Understanding the dynamic between targets and mirrors helps in predicting market moves and making informed trade decisions.
The goal is to simplify the decision-making process based on whether a Pandora’s box exists and the use of appropriate levels (hold vs. ladder points).