For 169 fade trades to work, they must be in the sequence of HH-HLs or LL-LH and there needs to have a level to support the trade. The 169 fade is also valid if price hits the level while outside the 3Min Bolli Bands.

In this example, the market hits the 169 while in the momentum phase of the move off the futures gap. It has been seeing new highs and HLs and when it hits the 169, it is with a new high, which disqualiofies the trdae.

And here’s an example of a perfect 169 fade setup – this time the trades coherent with the market’s flow.

The market has made a LH above a KL and then found sellers; on the first hit price goes straight through the 169, but then it returns to retest, giving a lovely fade entry.

Here’s another example, where as in the first chart, price hits the 169 while in a LH-LL sequence so I wouldn’t fade it against the market flow. Instead of a fade, it setups as an Igloo which is a continuation trade.

Even when it’s not a valid setup – as in this case because the market is in a LH-LL sequence – the 169 still gives an opportunity but as an Igloo which gives a with-trend entry using the minor bounce at the 169.

169 fades that don’t meet the trade criteria often turn out to be Igloos or J-Los as the level usually sees a small reaction even when it’s counter trend

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