Reply To: MK web “wish list”:


Regarding the scales,
again looking into the past tells you a lot; let us take GBPUSD as an example. The important part is whether the respective DM flow led to an increase in the Net DM. As you can see, on the day chart, a total DM bar of 215 is already significant. That means when you see a “40 PB” on the H1 chart, you better pay attention. HOWEVER, the DECISIVE factor here is the Net DM indi (that is why it was created). For example, if we are within a squeeze against the DM longies and then a red “40 PB” of the DM shorties come in, this one is fully within the DM tolerance and hence can even win. So that is why we perform multi-timeframe analysis and we also understand that “a trade is not a trade”.
In “low bias” market phases, put your risk per trade all the way down. In high bias phases (squeezes!), you can go for it. The best traders are highly adaptive and adjust according to the bias. That is where the money is.
You need to differentiate.
You cannot just simplify with “I just trade against any PB that comes”. That will NOT work, obviously. A PB is not a PB. But the MK shows you what the situation is overall, so that way you know how to evaluate new DM flow etc.
It is not rocket science.
Just accept the market structure as it is. Do not come with own ideas regarding “what needs to be done”, like “today I will look for shorties and trade against them”. Mr. Market decides which setup you can take and which one not. And without the MK you are completely blind. You have NO way of knowing whether overall the DM is long or short.
You have no way of knowing whether there is a DM switch, or whether the main targets have been cleared, or whether a PB nest needs to be priced in.
That is why “naked price chart trading” does not really work in the long-run, yes, that includes any SMC. Oh, you see a “change of structure”? Really? Just because there was a deeper pullback? As you know, if then DM shorties come in, the price will again go up etc.
That is why I recommend to really understand the actual market structure (so the MK) first, the price chart itself then helps a lot but on its own a naked price chart does not really allow you to consistently predict. I believe that this is rather self-explanatory.
Just be careful to not fall into a situation where “you cannot see the forest because of the trees”. The H1 can be useful, but be aware where we are on the other time frames, near a day chart MA, near a H4 reversal band etc.
Follow the steps and you will be fine.
Do not do freestyle stuff (unless you have sufficient experience that is…..then you can start to stretch things a little……like taking a trade against a squeeze here and there etc.).
If you are still learning, stick to the high bias stuff.
Yes, that means that you will need to skip a lot of setups, but it is what it is.
Or, you can sit down and tape read the MK for a few weeks, and this will allow you to internalize well what is going on.
Again, everyone is a little different.


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