Notion Investment of Trading Template: Because Excel is So Last Year 😎

Slow-Grind Up/Down Trading Strategy

Overview:

Mastering the art of trading slow grind price action (PA) involves understanding market structure (MS) and price reactions. When the price approaches range highs or lows, a sweep is often expected to capture liquidity. However, during slow grind movements, prices may bait invalidation, fueling the grind by teasing potential reversals.

- Bigger Moves: Indication of a significant move in the slow grind direction.

- Protected Levels: In an uptrend, significant lows are protected; in a downtrend, significant highs are protected.

Strategies for Trading Slow Grind Up/Down:

1. Price Stalling Near Invalidation:

- Observe when the price stalls near invalidation points without breaking them.

2. Zero Weakness/Strength in Trending Moves:

- Price shows no weakness or strength during a trend, filling all imbalances within a range before expanding in the grind direction.

3. Big Rejection with No Follow-Up:

- A strong rejection occurs but fails to follow up on significant highs or lows.

Backtests:

- Regularly backtest strategies to validate their effectiveness in various market conditions.

Trend:

1. Gaps in Price:

- Leaving large gaps is detrimental to trending moves, as price cycles between efficiency and inefficiency. These gaps often get filled.

- Control selling or slow grind down is ideal for short positions, as this MS typically leads to an expansion in the trending direction.

Compression and Consolidation:

- Assess compression and consolidation patterns to identify potential breakouts or breakdowns.

Bait:

- Price action may bait traders into false moves, particularly during slow grind phases.

Fair Value Gap (FVG):

- Monitor FVGs for potential trade setups and price reactions.

Positioning:

- Proper positioning is crucial for capitalizing on slow grind movements.

Execution:

1. Post-Big Pump:

- If the trend is strong, the price should not lose any significant lows. Protected lows and higher highs indicate strength.

- If the price loses a significant low (MSB) with large gaps below, it triggers a short entry.

- A lower high (LH) suggests weakness at highs, signaling a possible bait setup.

Strength Trading:

- Focus on trading strength during slow grind movements, capitalizing on continuation patterns.

Extreme Points of Interest (POIs):

- Identify and react to extreme POIs, considering the market's reaction, absorption in wicks, and break of structure (BOS) in dense moves down.

Reaction:

- Depend on the reaction at these POIs to confirm trade entries and exits.

Strength and Weakness:

- After a significant pump, the price should consolidate at highs and continue moving forward without showing weakness.

Micro-Management:

- Implement micro-management techniques to optimize trade entries and exits.

Weekend Trading:

- Consider the unique dynamics of weekend trading, including lower liquidity and potential gaps.

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This product description provides a comprehensive guide to trading slow grind price action, emphasizing market structure, price reactions, and strategic execution.