Understanding the Seek and Destroy Strategy

Sep 8, 2024

Review flashcards

Seek and Destroy Strategy Lecture Notes

Introduction

  • Purpose: To understand the "Seek and Destroy" strategy, frequently discussed in YouTube and TikTok videos.
  • Emphasis on personal discovery through market observation.

Key Concepts

  • Seek and Destroy: A strategy identifying market patterns where price seeks out liquidity points before making a significant move.
  • Common Experience: Traders getting stopped out at breakeven due to this pattern.

Strategy Overview

  • Timing: Often occurs around 10:30 AM, especially in NASDAQ markets.
  • Components:
    • Liquidity Sweep: Initial move to sweep liquidity.
    • Break of Structure: Followed by a move that doesn't hit take profit levels.
    • Fair Value Gap: Fills and then reverses to take out liquidity points.

Practical Application

  • Trade Entry:
    • Enter trades after observing a liquidity sweep and structure break.
    • Monitor for price movements that align with Seek and Destroy timing.

Market Examples

  • NASDAQ: Observations of daily occurrences post-market open.
  • S&P 500: Similar patterns observed, showing reliability of the strategy.

Patterns and Timing

  • Common Range: 10:30 AM to 11:00 AM.
  • Movement:
    • Consolidation followed by breakout.
    • Entry points established, then targeted by Seek and Destroy.

Execution Techniques

  • Initial Trades: Based on observed liquidity sweeps and structure breaks.
  • Secondary Entries: Post Seek and Destroy, targeting high timeframe moves.

Risk Management

  • Stop Loss: Adjusting stop loss placements considering Seek and Destroy effects.
  • Take Profit: Setting realistic take profit points to avoid breakeven exits.

Examples and Case Studies

  • Daily Analysis: Walkthroughs of specific trading days highlighting the strategy's application.
  • Market Behavior: Consistent identification of patterns across multiple trading days.

Conclusion

  • Takeaways:
    • Importance of observing market timing and liquidity patterns.
    • Potential for improved entries and profitability by leveraging the Seek and Destroy strategy.
  • Final Advice: Encourage continuous observation and adaptation of strategy based on market behavior.

Note: The strategy requires diligent observation and timing precision. Regular market review helps in recognizing and executing trades effectively based on the Seek and Destroy approach.