A trader shows how to find a high-reward entry by combining a higher-timeframe liquidity zone with a lower-timeframe confirmation pattern. He spots a Da Vinci pattern on the 1-minute chart, enters when the low gets stabbed, and achieves a 1:12 risk-reward ratio by keeping the stop tight.
You can see how we printed this high. From that point, we sell off, grab old lows. Perfect. From there, trades back up to the upside. We have this high, we have this high respecting this whole liquidity zone. These highs we've already identified as a future target. So there you go. We have engineered liquidity, which we are going to target, and then we move to the downside. We grab internal. Now, how do we enter? You would take an entry here. So the stop loss is too big. When the stop loss is too big, the RR is shot. But for myself, I do want to see a higher RR on the table. Now, what do I do? I need to identify a confirmation-based entry on the lower time frames. So we're going to dive into this price action right here, the 1-minute chart. Now look at this price action, this very, very choppy PA on the weighted upside. Now there's a Da Vinci forming in front of us on the lower timeframes. From here, this level was respected, which means there's going to be liquidity below here. And watch this. You have your entry as soon as the low gets stabbed, stop loss goes below the low and the target to the upside. You're looking at a 1 to 12. And if I just zoom out, there you go.
