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Chapter 05

The 3-Step A+ framework

The same engine at any scale: identify, confirm, execute.

Step one: identify the condition

Before any pattern and before any confirmation, identify what kind of market you are in. A bullish trend prints higher lows and higher highs. A bearish trend prints lower lows and lower highs. Consolidation prints neither, and consolidation means there may be no trade.

The cheat-sheet version of a strong bullish move: a higher low, a higher high, and a candle that closes above the previous high. Two candles in sequence doing that is momentum you can read at a glance. No clear sequence, no bias. No bias, no trade.

This ordering matters. Most traders start with the entry pattern and work backward to justify it. The framework starts with the condition and refuses to look at entries until the condition says which side of the market is even allowed.

Step two: mark levels to your scale

Mark the previous levels at the scale of your trade. Swing traders mark the previous weekly high and low plus the intraweek swing points from the prior week. Day traders mark the previous daily high and low plus the intraday and session extremes. Scalpers mark those daily levels plus the previous session highs and lows.

The levels are where the system hunts. Price trading into one of them and printing a swing failure is the confirmation event, the same trap read at every scale.

One system, three zoom levels. The trader picks the scale that fits their life, not a new strategy for each timeframe.

Step three: execution and the 1R habit

Execution is mechanical once the first two steps agree: enter on the close of the confirming candle, stop beyond the failure's extreme, target the previous high or low. A typical example from his own teaching runs about 1.3 to 1 reward to risk; the edge comes from the win rate of the trap, not from lottery targets.

Risk is fixed per trade before entry. The stop placement question in review is always the same: was the idea wrong, or was the placement wrong? A stop inside the market's normal wiggle takes losses on right ideas, which is how good systems get abandoned for bad reasons.

And the standing rule sits on top of everything: invalidation hit means done for the day. The system's math only works for the trader who is still following it next week.