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The WoW trade, trendline break at higher timeframe zones (High ODDS WoW…
A Nested zone WoW zone is an imbalance which is located within a bigger timeframe WoW zone. The more nested WoW zones the better
High ODDS WoW Trade
20 EMA Confluence
High Odds if there is bigger picture trend. HTF 20 EMAs will only be used if the TF we're analysing has got a clear trend. 20 EMAs work with trending markets, else they are useless
A similar scenario happens when the potential imbalance has not made 2:1, we need to wait for confirmation, WoW trades can happen at non 2:1 imbalances
There are no HTF zones to lean on but price starts to react at a MN or WK TL. Wow trades can occur at TL confluences
Wow trades play out really well in momentum and location scenarios, that is, with the bigger picture in a trend paired with the sequence and Realignment scenarios.
- E.g. MN & WK Up, D1 loses momentum and retests a fresh WK DZ --> Descending D1 TL is broken which provides a momentum and location D1 WoW Long
- Price is testing a bigger timeframe zone or flip zone
- Price is over-extended
- More than 3 CP patterns will most likely have been formed
- Price reacts to the bigger time frame and creates a brand new imbalance
- Big rallies and drops are not sustainable
Examples
- When to wait for a WoW trade (trendline break)
- Patience is key, you can trade lots and lots of instruments on D1 entries, but patience is key
- Which Timeframe minimum we should be waiting for as confirmation for a WoW trade
- The bigger the timeframe the higher the WoW Timeframe we have to use for confirmation
- How to use confirmation on D1 and WK timeframes to trade at bigger TF zones like the WK and the monthly. At a Monthly area of demand, it's higher odds to wait for at least a D1 demand to confirm a WoW trade. Lower timeframes will give false signals, moreover if the instrument you are trading has lower liquidity (like the exotic pairs). H4 is fine as confirmation for D1 zones, H1 as well if you are doing intraday. H4 is fine if WK supply is fresh and original, else a D1 imbalance. Many H4 levels at WK zones will be retested several times until the D1 imbalance is created
- The bigger the TF the higher its reliability
- If the bigger timeframe level is hit and a trade already played out (made it non-fresh), it's better to wait for a deeper penetration of the bigger timeframe before looking for another WoW trade
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