A very high R/R trading strategy
1. Start with the big picture (4-hour chart)
Look at a 4-hour chart to figure out the main trend (is price mostly going up, down, or sideways?).
If it’s going up, you’re mainly looking for buying opportunities.
Example: If the market has been climbing for days, you want to buy during temporary drops.
2. Zoom in a bit (30-minute chart) to find a good setup
Wait for a small dip (a “pullback”) in the bigger trend.
Ideally, that dip happens in a “demand zone” - an area where buyers have previously stepped in and pushed prices up.
3. Zoom in even more (5-minute chart) to time your entry
Look for signs the dip is ending: price stops making lower lows and starts making higher highs.
This means buyers might be taking control again.
4. Double-check with “Order Flow” tools
Use special charts (Bookmap, footprint charts) to see the actual buying and selling pressure.
Look for:
Absorption: Big buy orders keep the price steady, even when sellers try to push it down.
Exhaustion: Selling is drying up, meaning sellers are running out of steam.
5. Enter the trade
Buy when both the chart pattern and the order flow signs match up.
Place a stop loss just below the most recent low to protect yourself if you’re wrong.
6. Set your target & manage the trade. Aim for a logical price target, like the VWAP (average price of the day) or a known resistance level.
If the trend continues strongly, consider moving your stop loss up to lock in profits (“trailing stop”).
In short:
Start wide, spot the trend → look for a pullback → wait for signs it’s ending → confirm with buy/sell pressure data → buy → set a safe stop loss → aim for a realistic target and protect profits as the trend continues.
You can scale this strategy on any timeframe 1h, 1D etc. I find a four-hour timeframe is more suitable for me, and I might even look for a weekly chart too, for any swing to long-term trades.
