Continuing on from Part 5 - NOTE: You will need to have watched all prior TPO lessons, as well as Footprints and Volume Modules to fully understand this lesson.
DD Setups (Double Distribution) have a strong win rate with an easier process to set up.
Ledges are two more TPO blocks at the same price, they are the same as a Poor High and Low, that for in the middle of a TPO chart (visual examples are provided in this lesson).
Ledges should be used as S/R levels within TPO charts.
IMPORTANT NOTE: This strategy is for day traders.
Continuing on from Part 5 - NOTE: You will need to have watched all prior TPO lessons, as well as Footprints and Volume Modules to fully understand this lesson.
DD Setups (Double Distribution) have a strong win rate with an easier process to set up.
Ledges are two more TPO blocks at the same price, they are the same as a Poor High and Low, that for in the middle of a TPO chart (visual examples are provided in this lesson).
Ledges should be used as S/R levels within TPO charts.
IMPORTANT NOTE: This strategy is for day traders.
Key Points of the Lesson
UTILITY
Ledges can be used as intraday Support/Resistance levels.
Gaining acceptance into the corresponding Single print block activates a Double Distribution setup.
Establish/adjust trade setup accordingly ahead of time.
IMPLEMENTATION
Specialized software: Exocharts or Atas.
Load standard CC TPO template.
Determine Ledges and be aware of Double Distribution Day TPO profiles.
Same as poor high/poor lows but formed inside of the TPO profile.
Two or more TPO blocks (columns) at the same price create a ledge.
Ledges are used as intraday Support/resistance levels in TPO profiles.
DOUBLE DISTRIBUTION SETUP
Occurs when price gains acceptance into a large row of Single Prints between two distribution profiles ⇒ Trade to the opposite of the Single Print row.
Activation preferably on the following day (up to 1 week ⇒ no hard rule, however).
Can also occur on the same day as the Double Distribution.
TIPS & TRICKS
If a ledge is formed intraday with more than four TPO blocks (columns) at the high/low and price rejects from it ⇒ Expect price to break through upon revisiting it (context dependent!).
Monitor Volume, Delta, Open Interest and CVD divergences on the retest.
Above/below Ledges there is generally resting liquidity in the form of stop loss orders.
If price breaks through the Ledge, it can be flipped to support/resistance ⇒ First idea, however, would be to expect a Swing Failure Pattern.
Trading the breakout of a Ledge is not recommended ⇒ Unless clear S/R flip with order flow confirmation.
When price gains acceptance into a Single Print block as part of a DD setup ⇒ Fading the move is not recommended.
Most useful part of the DD setup is when NOT to trade.
Avoid getting caught up in a “squeeze” through the Single Print, as no S/R levels are built during its creation.
TAKE HOME MESSAGE
Ledges are useful intraday S/R levels.
Gaining acceptance into the corresponding Single Print block activates the Double Distribution setup.
Know when NOT to trade, avoid counter-trading the activated DD setup.