Forex trading · Framework
A rules-based trading framework that reads the market as a continuous auction, where price moves to find value and participants reveal their intent.
Read the framework1.1Mandate and principles
Mandate
Preserve capital first. Compound it second.
Trade only pre-defined setups where the risk is known before entry. The goal is a positive expectancy sustained over a large sample of trades, not the outcome of any single one.
Price and volume are the primary evidence. Everything else is context.
Price moves to find value, then rotates. Acceptance or rejection reveals who is in control.
A trade is judged by whether the process was followed, not by whether it won.
Patience is a position. Most of the time, the correct trade is none.
2.1Confluence: the evidence I look for
Confluence 01Balance day
ContextThe market is in balance, rotating inside an accepted value area.
Price reactionI look for a probe beyond a value-area extreme that fails to hold, bringing price back inside value.
Order flowAbsorption or exhaustion at the same extreme supports the rejection. I need this to align with context and price reaction.
Context + price reaction + order flow · Risk defined first
Confluence 02Imbalance day
ContextThe market is out of balance, moving directionally to find new value.
Price reactionI look for price to hold beyond the value area, showing acceptance rather than a brief breakout.
Order flowAggressive participation in the direction of the break supports acceptance. I need this to align with context and price reaction.
Context + price reaction + order flow · Risk defined first
2.2Reading confluence across the auction
Balance
Price rotates between the value area high and low. I look for rejection at an edge together with absorption or exhaustion in order flow.
Confluence to look forRejection with order-flow confirmation