Quick answer: Mark 2–4 zones. Plan two scenarios (hold vs break). Enter only on a
trigger. Place invalidation beyond the zone.
The framework (why it’s “high probability”)
Most losses come from entering because a line exists. This framework forces you to wait for proof and gives you a clear “I’m wrong” line.
- Zone: pick a level that matters (range edge / prior high-low / swing).
- Scenario: price holds the zone or breaks and accepts.
- Trigger: break + close, sweep + reclaim, or retest hold.
- Invalidation: beyond the zone in a place that changes the story.
How to choose zones (2–4 only)
- prior day high/low
- range high/low
- one major swing zone (multiple reactions)
Triggers that filter fakeouts
- Break + close: acceptance beyond the zone.
- Sweep + reclaim: wick through, close back inside.
- Retest hold: break, pull back, hold from the other side.
Checklist
- Zone is major (not random intraday)
- Trigger confirms intent
- Invalidation is clear and logical
- Risk is predefined and position size is calculated
Related posts
- Support & Resistance Trading (Deep Guide)
- How to Find Key Levels (Day Trading)
- Break and Retest Strategy
- Market Structure: BOS vs CHoCH
- Risk Management & Position Sizing
Get ChartsGPT
Turn your screenshot into key levels, scenarios, trigger, and invalidation in seconds.
About ChartsGPT
ChartsGPT is an AI chart analysis app designed to turn screenshots into structured levels and scenarios. For support, contact anthonyvvza@gmail.com.