This video explains a trading strategy called "PreMarketDesign" which focuses on identifying ranges, using Fibonacci levels to pinpoint entry and exit points, and understanding the psychology behind trading decisions. The presenter emphasizes a mechanical approach to trading, where the direction model and established levels are the foundation for profitable trades.
Identify the Overall Range:
Apply Fibonacci Levels (Directional Model):
Define Premium and Discount Zones:
Identify Trading Opportunities:
Incorporate Confluences and Inducements:
Determine Entry, Stop Loss, and Take Profit:
Manage the Trade:
Inducements are essentially traps or bait set by the market to lure traders in before a significant price move. They create a false sense of opportunity or security. In this strategy:
Confluences are factors that align to validate a trade setup. They strengthen the probability of a trade working out by providing multiple reasons for price to react at a specific level. In this strategy:
Essentially, inducements are what the market uses to trick you or draw you in, while confluences are the multiple signs that confirm your trading idea is sound, making your strategy more robust and mechanical.