UPSIDE EXPANSION across the 3 DR Sessions - 📈 DR IDR Trading Strategy Backtest (Part 2) | Themas7er | Summary and Q&A

TL;DR

This content discusses the importance of analyzing price action and using expansion models in trading to predict market movements and make profitable trades.

Key Insights

• 🕯️ The relationship between the three trading sessions (DR) can provide insight into market direction and potential upside expansion.
• 📉 A large volume imbalance suggests that the market may be closing this before moving in another direction.
• 🔍 Training your eye to observe price action around key levels (DR and IDR) can provide a deeper understanding of market behavior.
• 📈 Staying above key levels and experiencing rejections indicates a bullish sentiment and potential for upside expansion.
• 🔎 The midpoint of the 50 level can be a key area to observe for rejections and potential short opportunities.
• 📉 Rejections at a level without clear patterns may not provide strong trading opportunities.
• 🔄 Building patterns within a range day or after-session TR (ODR) could indicate a market consolidation rather than a directional expansion.
• 🔍 Closing above previous IDR and DR levels suggests a bullish sentiment and a potential early sign for an upside expansion.

Transcript

and you see the first two three candles opening in the New York session that's all that's already real trigger you know based on the relationship between the three sessions of the Dr that you will expect an upside expansion because that's now we are forming our after session Dr so as you can see session is finished so far we see a break from the pr... Read More

Questions & Answers

Q: How does analyzing price action and session relationships help in predicting market movements?

Analyzing price action and session relationships helps in predicting market movements by identifying rejections, volume imbalances, and the potential for upside or downside expansion models. This analysis provides valuable insights into the market's behavior and can guide traders in making profitable trading decisions.

Q: Why does the trader focus on the relationship between the ADR and IDR levels?

The trader focuses on the relationship between the ADR and IDR levels because it helps determine whether the market is likely to experience an expansion or range day. By analyzing how price reacts around these levels, traders can anticipate market movements and adjust their trading strategies accordingly.

Q: What are some key indicators the trader uses to identify trading opportunities?

The trader uses indicators such as rejection levels, volume imbalances, and the closing price relative to the ADR and IDR levels to identify trading opportunities. These indicators provide information on market sentiment and potential price movements, allowing traders to make informed decisions.

Q: Why does the trader wait for confirmation before entering a trade?

The trader waits for confirmation before entering a trade to ensure that the market is following the expected pattern and movement. Confirmation provides additional evidence that the trade setup is valid and increases the chances of a successful trade.

Q: What is an expansion model in trading?

An expansion model in trading refers to the expectation that the market will expand in a particular direction. It is based on analyzing price action, session relationships, and the behavior of rejection levels and volume imbalances. Traders can use expansion models to identify potential trading opportunities and make profitable trades.

Summary & Key Takeaways

• The video emphasizes the significance of analyzing price action and the relationship between different trading sessions to predict market expansion or range days.

• The trader explains how to identify rejection levels, volume imbalances, and the ADR (Average Daily Range) and IDR (Initial Daily Range) levels for trading opportunities.

• The content demonstrates how to enter long or short positions based on the confirmation of an upside or downside expansion model.