Broadening Formations & Full Time Frame Continuity (BikerBoy D)

Sep 18, 2024

Lecture Notes: Biker Boy D on Broadening Formations and Full-Time Frame Continuity

Introduction

  • Presentation by Biker Boy D from Zamunda Profit Squad at Zamunda University
  • Focus on real examples and encouraging questions
  • Agenda: Broadening Formations and Full-Time Frame Continuity

Broadening Formations

Definition and Characteristics

  • Series of higher highs and lower lows
  • Represented by diverging trend lines
  • Indicates possible exhaustion in market trends
  • Potential for reversals at the top or bottom of formations

Key Concepts

  • Higher highs and lower lows must be present
  • Diverging trend lines create a broader range
  • Risk to reward: Looking for reversals at extreme points of formation

Drawing Broadening Formations

  • Three Bar Method: Find a three bar formation; high is higher, low is lower than previous
  • Alternative Method: Connect a high to any previous lower high, and a low to a lower low
  • Swing Highs and Lows Method: Identify swing highs/lows for drawing formations
  • Indicators: Use indicators like 'inducement stop hunt' for identifying swing points

Common Mistakes

  • Lines should not converge; needs to show divergence (megaphone shape)
  • Many ways to draw formations; ensure higher highs and lower lows

Full-Time Frame Continuity

Definition

  • Consists of aligning the 60-minute, daily, weekly, and monthly time frames
  • The goal is to see consistent color alignment across time frames (green for bullish, red for bearish)

Importance

  • Indicates who is in control (buyers or sellers)
  • Aligning time frames can increase trade success likelihood

Strategies

  • Marking opens of larger time frames for reference
  • Watching for flips in candle colors across time frames
  • Utilize indicators to simplify marking of time frame opens

Practical Application

  • Use smaller time frames (e.g., 15 minutes) to monitor market structure changes
  • Look for higher time frame trends for strategic long-term decisions
  • Allow time for hourly, daily flips to understand broader market dynamics

Tools and Techniques

  • Object Tree in Trading Platforms: Organize and manage broadening formations and trend lines efficiently
  • Indicators for Assistance: Use tools like 'Strat candles Plus' for marking time frame opens automatically

Q&A and Closing Remarks

  • Encouraged audience participation and questions
  • Emphasized practice and charting for mastery
  • Highlighted the importance of joining support groups or communities (like Zamunda) for learning and support

Summary

  • Broadening formations show potential market reversals with higher highs and lower lows
  • Full-time frame continuity helps in understanding market control across different time frames
  • Use of tools and indicators enhances charting and trading efficiency

Remember to practice the drawing of broadening formations and observe full-time frame continuity to enhance trading strategies. Utilize the object tree and appropriate indicators to maintain a structured and efficient approach while trading.