At the OEC there are specific strategies that utilize the levels discussed on the "Chart Setup" page; the "Open, High, Low, and Close" levels on weekly, daily and intraday charts.

These "pivot trades" focus on price breaking out of a key area or failing to break out of a key area. While these are great trades - they are not always an option and so other strategies are introduced to provide more opportunities.

The more strategies a trader has - the more opportunity there is to catch a trade - but conviction comes from understanding the opportunity so just learning the strategy is not enough.

RBD

Rally Base Drop (RBD) is a liquidity concept that focus on “unfinished business” and the opportunity to see price re-test an area. If we have a good idea where price is going - we can develop a tradable opportunity from that.

Inside Day Breakout Failure

This is a trade that comes into play when price fails to break out of yesterdays trading range and is a very easy trade to see, to plan for, and to execute.

While this trade is not something we get every day, it is a great trade for range days and for weeks where we have a market waiting on economic data (like an FOMC week).

It may seem like the same strategy discussed in the intraday introduction but the key difference is the "daily chart" approach and the consideration of a short swing.

The opposite trade here is "inside day breakout" (like the picture above) where price expands and continues to push farther outside of yesterday's range. These days are difficult for newer traders to trust - those strong trend days that just keep running and running without reversing.

Descending 200-Day MA rejection

While performing a top-down approach we want to recognize when price will interact with the 200 MA (the EMA or the SMA) and of course this can also be done with the 50EMA / SMA as well.

Rejection against the descending 200 (or the 50) can be a powerful short opportunity but it also is a bias for "shorts today" and looking for new opportunities to short a market off the intraday highs.

In the picture to the left we can see multiple days where price struggled with the 200MA. If we had marked that day in the intraday charts we would have played this bias.

Bear Pennant Failure

The Bear Pennant (or the bear flag) failure is a great day chart setup that offers insight and bias for intrday opportunities. The dynamics are clear, the chart patterns are easily identifiable and the levels for price action are often easily identified.

This "daily chart" setup is a great assist for newer traders who struggle with identifying where today's price is going. Once we have identified the potential for a Bear Pennant Failure we just need to see the follow-through.

A bear flag (or a bear pennant) is a continuation pattern so we should see price continue lower. But a "failed bear flag" sends price back to the upside.

In the picture on the right we have 2 examples of a bear pennant or a bear flag that failed to follow - through lower & instead the reversal days were strong pushes higher.

TRB

The TRB (or "Trend Line Breakover") setup is a great trade on all timeframes and has a visual pattern that is easily identified. It can be used off the higher timeframe to provide intraday bias and directional cues and it can be used intraday as the trade setup.

Once a trader has identified the daily chart setup opportunity we can map out the levels on the intraday chart. We would focus on the levels and measured moves and use those for goals and targets.

TRB plays offer exceptional follow-through days so they are important from a trading opportunity but also as part of an analysis that would warn us not to short the follow-through day.

Recovery days are difficult to spot and are not always present; some times all we have for "recovery" is a red day that closed off the lows.

Momentum

One of the greatest daily (weekly) momentum setups is a "star" reversal. This can be the Morning Star reversal or the Evening Star reversal.

This setup is focused on fast action intraday from the higher timeframe pattern; this setup offers bias for a continuation of the move higher (with morning star reversals) or continuation lower (with evening star reversals).

It's more powerful when we have a gap, when we target the daily chart and intraday chart levels and when we bring in the clock.

Using the weekly chart to identify the setup is the first step but we have to follow-through with the rest of the analysis to really maximize the opportunity.