A price-reversion strategy that shorts when price moves away from a defined fair price. Two entry methods: displacement-candle entries when the current candle's body exceeds the previous one and closes below its wick, or break-of-structure entries when a wick dips lower than two prior candles. The break-of-structure approach is slightly more profitable.
Session open, price is coming in at whatever level. The initial move, whichever way it goes, it doesn't matter to me. All I'm looking to do is revert back towards what I claim to be the fair price. And in terms of the entry, there's a few different entries that you can do. The first one is a displacement candle. Means the body of the candle must be larger than the body of the previous candle, and it also must close below the wick. And if you're getting a displacement towards the fair price, I would take a short. The second one is a break of structure. It is pretty similar to displacement entry, but it's slightly more profitable. Now for the break of structure entry, when there's a wick down here that is lower than the 2 candles previous, the wick is lower, and then a candle comes in here and it breaks the structure, then I will take a short position.
