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Elvis Method and Market Structure

Jul 18, 2024

Elvis Method and Market Structure

Introduction

  • Presenter: Mas Zulfikar
  • Topic: Methodology in Trading with a focus on Elvis (or sltfis) method
  • Disclaimer: Keep the basics of zones and market structures in mind such as Do Theory, Elliot Wave, Wyckoff, etc.

Basics of Elvis Method

  • Elvis method is a combination of ICT (Inner Circle Trader) and SMC (Smart Money Concepts).
  • Modifications from basic ICT and SMC concepts.
  • Importance of basic market structures and zones to ensure stable directional moves.

Tools and Concepts to Use

  • Market Structure: Zones like supply & demand, support & resistance, premium & discount, Fibonacci, RSI (especially combined with emotions to avoid emotional bias).
  • Charts and Timeframes: Use RSI on m15 timeframe for better tracking of zones.
  • Example: Finding a zone with target areas for entry based on RSI overbought/oversold levels.

Practical Application on Chart

Step-by-Step Process

  1. RSI Utilization: Identify overbought (Resistance) or oversold (Support) zones using RSI on m15 and confirm patterns on the lower timeframe (M1).
  2. Finding Entries: Example of scanning charts using RSI to spot overbought zones on M15, marking these zones and confirming one level lower on M1 for entry patterns (breaking higher highs and lower lows to form entries).
  3. Zone Respect: Ensure price entering a marked zone to validate direction before entry.
  4. Entry Confirmation: Patterns like engulfs to confirm an entry point and setting SL (Stop Loss) right above for bearish setups or below for bullish setups.
  5. Patterns Observed: Recognizing patterns like change of character, MSS on charts, especially with m1 time frame after identifying on m30 respectively.

Case Study Examples

  • Example 1: Entries based on RSI identified on m15 and confirmed on m1 using support/resistance and rejection patterns seen on m15 and executed on m1.
  • Strategies: Devising strategies for different market conditions (i.e., avoid New York session due to noise).

Method Refinements and Tips

  • Multiple entries strategizing (e.g., combining Reese & Break Event for better entry setup, averaging up entries for optimized profits with minimized risk).
  • Revisiting the theory of primary and secondary trends for thorough understanding and application.
  • Major Concept: Adjusting accordingly between primary, secondary, and minor trends for entries and exits.

Important Points to Remember

  1. Zones: Never ignore zones identified as they provide context and prevent FOMO (Fear Of Missing Out).
  2. High & Low Identification: Essential to determine structural points on higher timeframes to guide minor adjustments and entries on lower timeframes.
  3. Scalping Efficiency: Taking partial profits at milestones like 1:3 RR setups for safer and effective exits (sticking to pre-determined SL and TP setups).
  4. New York Session: To use a wider SL (~30 pips) due to the volatile nature of the session.
  5. Verification & Confirmation: Always verify chart patterns and their contexts, not just visually but structurally (e.g., engulfing patterns confirmed below key levels).

Questions from Participants

  • Zone Identification: Questions on which timeframes are suitable for identifying zones; m30 and above for stability, m1 for precision entries.
  • Entries & Lot Sizing: Scaling up lot sizes based on successful trades, ensuring risks are managed even if taking smaller gains more consistently.

Conclusion

  • Combining technical methods to maximize entries and exits with minimized risk through comprehensive understanding of zones and structural aspects of charts.
  • Adapt and apply patience to confirm trades through repetitive zone and structure checks in relevant timeframe multiples.

Let's maximize our trading efficiency while understanding the importance of both structural zones and confirmation patterns to drive effective trading decisions.

Full transcript