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Short-Term Trading Techniques and Insights

Oct 13, 2024

Lesson 4: Short-Term Trading - Blending IPTA Data Ranges and PD Arrays for Liquidity Runs

Key Concepts

  • IPTA Data Ranges: Refers to time, looking back at the last 20, 40, and 60 days.
  • PD Arrays: Refer to price, dealing with different price structures like breakers, order blocks, and more.
  • Blending Time and Price: Combining IPTA data ranges and PD arrays to predict market movements.

IPTA Data Ranges

  • Time Context: Use the last 20, 40, and 60 days as a reference.
    • Each new day, the range shifts forward.
  • Interbank Price Delivery Algorithm: Uses data arrays from these periods to make decisions.

PD Arrays

  • Premium Market: When prices are high.
    • Look for bearish elements: mitigation blocks, breakers, voids, order blocks, rejection blocks.
  • Discount Market: When prices are low.
    • Look for bullish elements: same as above but bullish.

Trading Strategy

  • 20/40/60-Day Look Back: Check these periods for PD arrays.
    • Identify premium and discount PD arrays.
    • Use these arrays to predict market resistance and support levels.
  • Hierarchy: Follow the order of PD arrays to determine market movements.

Practical Example: Australian Dollar

  • Chart Analysis: Daily and 4-hour charts used.
  • Identify Highs and Lows: Define range by highest highs and lowest lows.
  • Premium/Discount in Charts: Define areas where market resistance or supports will occur.

Example Breakdown

  1. 20-Day Look Back:
    • Identify PD arrays above (premium) and below (discount) current price.
    • Look at old highs and lows, order blocks, and other PD arrays.
  2. 4-Hour Chart Analysis:
    • Details on how price moves from one PD array to another.
    • Use the failure of highs or lows to pivot strategy (e.g., bullish to bearish).

Lessons Learned

  • Adaptability: Market analysis might be wrong; adjust strategies accordingly.
  • Blending Time and Price: Helps predict and navigate market moves effectively.
  • Market Maker Manipulation Templates: Use these for insights into market setups.

Conclusion

  • Insights and Adaptations: Combining IPTA data ranges with PD arrays offers deeper market understanding.
  • Future Applications: Will build on these foundations in further lessons.