Explanation:
- Basic Idea here, is that under circumstances of a clear setup and DOL, we can capitalize on a really good move with an insanely high percentage gain at 2pm. How?
- Options contracts are much cheaper after 2pm,
- The increase in value is much more significant as price runs to your target, and possibly past it if we’re working with a continuation type of a trade.
- We would use PO3 model for 10am/2pm 4h candles, look at futures for price action and confirmations, but trade options.
- Understand HTF price action and outlook, specifically 4h. What is 4h telling us?
- If we’re seeing a potential clear continuation setup on 4h, scale down to 15m and look for 15m PDA (FVG or OB),
- Mark those out with a box on both NQ and ES,
- Wait for price to reach into them as 2pm opens, and look for these things:
- Price tapping into 15m PDA,
- SMT between NQ and ES,
- LTF CISD (Change in State of Delivery).
- Time Frame Alignment is also KEY.
- 1H PDA → 5m CISD
- 15m PDA → 1m CISD (Mainly stick to 15m PDAs as these have the highest probability of working out)
- 5m PDA → 15s CISD
Examples: