Reading market flow to choose the highest probability 169 fades
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.
And here’s an example of a perfect 169 fade setup – this time the trades coherent with the market’s flow.
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.
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