Introduction #

ME-Type 1 is a very effective strategy that allows you to buy low, sell high. This is suitable for people that prefer to wait for deep pullbacks and seek higher R/R ratios when trading high-volatility range-bounce price action in an already-established general trend. Let’s review the cheat sheet below and try to visualize it.

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Similarly to our Mag7 example, we will look for long-only signals. As you can see from the image above, we first wait for ARmageddon to find and print a Pyramid symbol – signaling weakness in price-action. This gives us plenty of time to prepare our trade using the ME-Type 1 strategy.

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We expect price to stay range-bound after the initial impulse and so we’re interested in buying a decent pullback (perhaps a few days after the signal) or, depending on your operational timeframe, within the next few hours. So if you’re trading a 5 minute chart, wait times are shorter. Remember this strategy requires time to both give you an entry and exit.

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In the above example we show you you what you can expect from a “type-1” setup. Flawless victory.

Recommended:

Use DSR to establish maximum depth for pull-backs when evaluating your type-1’s.

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This concludes our overview of ME Type-1. Please visit our discord and participate in the live sessions with other experience type-1 traders.