1.
1 Opposing Candles
Definition: Opposing candles are price movements
that challenge the previous directional bias. They are
used for reversal confirmation and marking entry
points.
Identification Rules:
1. Use the opening priceof the first candle in a
series of opposing close candles:
Upclose Series: Use the lowest upclose
candle (bullish reversal).
Downclose Series: Use the highest
downclose candle (bearish reversal).
2. Ignore smaller candles within a larger series.
Practical Applications:
Entry Trigger: Entry is placed after validation of
the opposing candle closure.
Stop Loss: Placed beyond the swing high/low of
the series.
Pairing Opposing Candles:
Combine with highs/lows or Fair Value Gaps
(FVG) for confluence.
Avoid opposing candles that lack supporting
price points (e.g., liquidity, FVG).
1.2 Fair Value Gaps (FVG)
Definition: A Fair Value Gap is a price imbalance
between the first and third candlestick caused by
strong momentum.
How to Identify:
Occurs when price moves quickly, leaving a gap
with no overlapping wicks.
Example:
1. Candle 1 closes.
2. Candle 2 opens and closes with a gap.
3. Candle 3 does not overlap Candle 1.
Uses:
Point of Interest (POI): Acts as a retracement
area for entries.
Order Blocks: FVGs highlight areas where large
orders pushed price.
Trading Rules:
1. Avoid entries during the FVG retest within Candle
1.
2. Wait for Candle 2 or 3 to confirm a valid swing
formation.
3. Place entries within the 50% retracement of the
FVG.
Stop Loss: Placed outside the swing point.
1.3 Equilibrium (Premium/Discount Zones)
Definition: Equilibrium is the 50% midpointof a
price range. It determines trade zones:
Premium Zone (Above 50%): Favorable for
selling.
Discount Zone (Below 50%): Favorable for
buying.
Two Types:
1. Candle Wicks: Used for reversals when large
wicks are present.
2. Candle Range: Used for continuations.
Practical Application:
Mark the equilibrium line on the relevant
timeframe.
Price should respect equilibrium to validate
continuation or reversal setups.
Advanced Use:
Identify Premium/Discount areas within higher
timeframe ranges for confluence.
Purpose: Swing highs/lows are essential for
spotting reversals, entries, and targets.
Candle Structure:
Candle 1: Pre-swing candle.
Candle 2: Takes the high/low of Candle 1
and closes inside the range → Swing point
confirmation.
Candle 3: Expansion candle → Trade entry
opportunity.
Candle 4: Continuation candle → Expected
move following expansion.
2.1 Types of Swing Formation:
1. Candle 2 Closure:
Takes out Candle 1's high/low and closes
back inside its range.
Setup: Anticipate expansion in Candle 3.
2. Candle 3 Closure:
Candle 2 fails to confirm the swing.
Candle 3 must close strongly to validate the
swing point.
Setup: Trade expansion from Candle 4.
2.2 Lower Timeframe Confirmation
(CISD)
Use lower timeframes to confirm swing
formation through Change in State of
Delivery (CISD).
Timeframe Pairings:
Daily Swing → 1H CISD.
4H Swing → 15M CISD.
CISD acts as a reversal confirmation
when price breaks a lower timeframe
structure.
3. WEEKLY PROFILES
Weekly profiles help anticipate directional
movement based on prior price action:
1. Classic Expansion:
Monday consolidates → Tuesday
reverses → Wednesday/Thursday
expands.
1. Midweek Reversal:
Monday/Tuesday consolidates →
Wednesday reverses →
Thursday/Friday expands.
2. Consolidation Reversal:
Monday to Wednesday consolidates →
Thursday reverses → Friday expands.
3. Thursday Counter:
Early week expansion (Mon-Wed) →
Thursday reverses the trend.
3.1 Rules:
Daily Candles: Use the daily chart to
identify swing highs/lows.
Validation: Look for Candle 2/3 closures at
key levels (e.g., POIs, FVGs).
Reversal Confirmation: Always confirm
with lower timeframe CISD.
1. Midweek Reversal:
Monday/Tuesday consolidates →
Wednesday reverses →
Thursday/Friday expands.
2. Consolidation Reversal:
Monday to Wednesday consolidates →
Thursday reverses → Friday expands.
3. Thursday Counter:
Early week expansion (Mon-Wed) →
Thursday reverses the trend.
3.1 Rules:
Daily Candles: Use the daily chart to
identify swing highs/lows.
Validation: Look for Candle 2/3 closures at
key levels (e.g., POIs, FVGs).
Reversal Confirmation: Always confirm
with lower timeframe CISD.
Daily profiles refine intraday trade entries:
1. London Reversal:
If London reverses → Seek continuation
during New York.
2. New York Reversal:
If London consolidates or creates opposing
runs → New York reverses.
3. Invalidation: Avoid trades if London expands
significantly.
Steps for High-Probability Entries:
1. Identify a swing formation on the daily
chart.
2. Align with the relevant weekly profile.
3. Confirm reversal using CISD on the lower
timeframe.
4. Align directional bias with daily profiles
(London/New York reversal).
Entry Types:
1. Candle 2 Closure Entry:
Enter at the open of Candle 3.
Stop loss → Swing high/low of Candle
2.
2. Candle 3 Closure Entry:
Enter at the open of Candle 4.
Stop loss → Swing high/low of Candle
2.
3. Opposing Candles:
Wait for confirmation at opposing
candles on lower timeframes.
Risk Management:
Minimum 2R risk-to-reward ratio.
Take profit at projections, liquidity zones, or
opposing candles.
Use trailing stop-loss at new swing points
or validated candles.
Use Fibonacci projectionsanchored to the
manipulation leg:
-2R: Target for Candle 3 expansion.
-4R: Target for Candle 4 continuation.
Focus on liquidity levels: Swing
highs/lows, Fair Value Gaps, or previous
session lows/highs.
Avoid Trading:
Day prior to high-impact news.
Sessions before medium-impact
news.
Never Hold Trades During News Events:
High volatility can cause spread
widening and loss of risk control.
Monday Rule: Avoid trading on Monday
due to:
Smallest average daily range.
Absence of significant news events.
Lack of prior weekly profiles to analyze.
The Fractal Model is a scalable trading system
applicable to any timeframe, from scalping (low
timeframes) to swing trading (higher timeframes).
1. Components of the Fractal Model
The model relies on 3 core components:
1. Higher Timeframe Swing Formations:
Identify valid Candle 2 or Candle 3
closures to establish swing points.
2. Lower Timeframe CISD Confirmation &
Projections:
Use a lower timeframe to confirm the swing
with a Change in State of Delivery (CISD).
Project targets using the manipulation leg.
3. Entries Within Expansion Candles:
Place entries during Candle 3 (initial
expansion) or Candle 4 (continuation).
2. Timeframe Pairing
The Fractal Model pairs a higher timeframe swing
with a lower timeframe confirmation:
Swing Timeframe CISD Confirmation
Weekly 4H Chart
Daily 1H Chart
4H 15M Chart
1H 5M Chart
30M 3M Chart
15M 1M Chart
3. Step-by-Step Process
1. Higher Timeframe Swing Formation:
Identify a valid Candle 2 or Candle 3 closure on the
higher timeframe.
Annotate equilibrium of Candle 2’s wick or range.
2. Lower Timeframe CISD:
Switch to the lower timeframe to confirm the swing
formation.
Identify CISD (Change in State of Delivery) with a
clear break of structure (BOS).
Anchor the manipulation leg and project targets using
Fibonacci extensions (-2R, -4R).
4. Example Workflow
1. On the Daily Chart, identify a valid Candle 2
closure back inside Candle 1 range.
2. Move to the 1H Chart:
Confirm a CISD with price breaking a lower
timeframe structure.
Anchor the manipulation leg and project
targets.
3. Switch to the 15M Chartfor entries:
Look for price retracing into an opposing
candle or equilibrium level.
Place entries with stop-loss at the Daily
swing point.
4. Manage trades:
Take profit at:
Liquidity levels (London or Asia
Lows/Highs).
Projections (-2R, -4R).
The OSOK Model simplifies the TTrades strategy into a
single high-probability trade setup. It combines all the
foundational concepts (swings, CISD, economic calendar,
etc.) into a clear process.
1. Key Components of OSOK
1. Daily Swing Formation:
Use Candle 2 or Candle 3 closures on the Daily
Chart.
2. Weekly Profile Alignment:
Match the trade setup with one of the four weekly
profiles:
Classic Expansion.
Midweek Reversal.
Consolidation Reversal.
Thursday Counter.
3. Hourly Confirmation:
Switch to the 1H Chart to confirm the swing
formation with a CISD.
4. Daily Profile Alignment:
Identify intraday reversals using either:
London Reversal (New York continuation).
New York Reversal (London consolidation).
5. Entry Logic:
Place entries after confirming CISD and aligning
with opposing candles or swing structures on lower
timeframes.
The OSOK Model simplifies the TTrades strategy into a
single high-probability trade setup. It combines all the
foundational concepts (swings, CISD, economic calendar,
etc.) into a clear process.
1. Key Components of OSOK
1. Daily Swing Formation:
Use Candle 2 or Candle 3 closures on the Daily
Chart.
2. Weekly Profile Alignment:
Match the trade setup with one of the four weekly
profiles:
Classic Expansion.
Midweek Reversal.
Consolidation Reversal.
Thursday Counter.
3. Hourly Confirmation:
Switch to the 1H Chart to confirm the swing
formation with a CISD.
4. Daily Profile Alignment:
Identify intraday reversals using either:
London Reversal (New York continuation).
New York Reversal (London consolidation).
5. Entry Logic:
Place entries after confirming CISD and aligning
with opposing candles or swing structures on lower
timeframes.
2. Rules for OSOK Model
1. Preconditions for Entry:
Daily swing forms (Candle 2 or 3).
CISD confirmed on hourly.
Weekly and daily profiles align.
2. Entry Confirmation:
Enter on the lower timeframe (15M, 5M, or 1M)
using:
Retests of opposing candles.
Swing formations within Candle 3/4.
3. Risk Management:
Stop loss → Swing point on Daily Chart.
Minimum 2R risk-to-reward before partial profit-
taking.
4. Projection Targets:
Fibonacci targets (-2R, -4R).
Liquidity levels (session highs/lows).
3. Step-by-Step OSOK Process
1. Daily Swing Setup:
Identify a valid Candle 2 or 3 closure at a Point
of Interest(POI):
Opposing Candles.
Highs/Lows.
Fair Value Gaps.
2. Hourly Confirmation:
Switch to the 1H timeframe and identify CISD.
Anchor the manipulation leg for projections.
3. Daily Profile Alignment:
London Reversal → Seek New York
continuation.
New York Reversal → Trade the reversal off
London session.
4. Lower Timeframe Execution:
Refine entries on the 15M/5M chart:
Opposing candles.
Candle 2/3 formations.
5. Trade Management:
Stop loss → Daily swing high/low.
Profit-taking → Projections (-2R, -4R) and
liquidity levels.
4. OSOK Model Example
1. Daily Chart:
A valid Candle 2 takes the low of Candle 1
and closes back inside the range.
Equilibrium of Candle 2 is marked.
2. Hourly Chart:
CISD confirmed with a bearish break of
structure.
Projections are anchored to the manipulation
leg.
3. Lower Timeframe Entry(15M Chart):
Price retraces into an opposing candle at
equilibrium.
Entry placed with stop loss at the Daily swing
point.
4. Profit-Taking:
Targets achieved: Asia Lows, -2R, and -4R
projections.
Key Differences Between Fractal and OSOK Models
Feature Fractal Model OSOK Model
Timeframe Works on all Primarily focused on
timeframes. Daily/Hourly.
Trade Frequency Multiple entries within One high-probability
swings. trade setup.
Complexity Requires multi- Streamlined for
timeframe analysis. simplicity.
Objective Scalping, intraday, or Focused on high R:R
swing trades. swing trades.
Both models offer unique strengths:
Fractal Model: Best for traders seeking multiple opportunities across
various timeframes.
OSOK Model: Ideal for traders preferring precision and simplicity with
high-probability setups.
1H
1H
15M
15M
15M
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