Finding Bearish & Bullish Setups

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How we trade here at APTC is quite simple and only requires the use of Price Action itself. Understanding directional bias is key in finding setups in the right direction, which is why with the help of a simple concept known as a "Market Shift" we can see right when the market is ready to make its next move.

In this NASDAQ Bearish example, we utilized the 1H timeframe to see a Market Shift right when the price reacted off of a Higher Time Frame Daily price level.

• Price traded above the High of July 21st but didn't stay there long and soon after began an expansion lower going below the last low that gave us our Highest High in price.
• We leave behind a FVG(ICT) which price re-trades too on the 25th during the London and NY Killzone. That plays into a Bearish Day template with London or NY giving you your High Of The Day but we will speak on that at a later time.
• Price rejects off the FVG and if you go back and take the range of the candle bodies from High to Low with your Fibonacci on the 22nd price action, you will see that price trade to 50% of the range. Above 50% is Premium price which is the most optimal area to look for Bearish Signals or we can take price around Equilibrium.
• As price moves away from the FVG we have a smaller one created that price trades to and quickly rejects away from as well.
• For the next trading day, the price open gaps and one thing about price is that it will look to close these gaps. A Sell Limit Order was placed right at the top of that gap with my Stop Loss at the most recent Swing High.
• At this point in Bearish conditions, we can target a Previous Day Low because Sell Side Liquidity will be resting there and also trading to older lows fulfilling this Higher Time Bias of Bearish.
• The trade accomplished +250 Points | 5:1 Reward to Risk.

Setups like this can occur on any timeframe and when we explore Lower Timeframe Entries you'll see how many times a week these opportunities arrive.