jdub-price-action-strategy

> **Skill:** Jdub Price Action Strategy | **Domain:** trading | **Category:** strategy | **Level:** intermediate > **Tags:** `trading`, `strategy`, `price-action`, `jdub`, `direction`, `location`, `execution` # Jdub Trades — Direction, Location, Execution Strategy > Source: "Steal My Exact Price Action Strategy (Simple & Proven)" by Jdub Trades (7 years trading experience) --- ## Core Framework Three sequential steps that MUST be followed in order. Skipping any step = trading blindly. ``` Step 1: DIRECTION --> Step 2: LOCATION --> Step 3: EXECUTION (Who controls?) (Where to trade?) (When to enter?) ``` --- ## Step 1: Direction — Who Is in Control? Determine the market trend on the higher timeframe before anything else. **Three market states:** | State | Structure | Action | |-------|-----------|--------| | Uptrend | Higher highs + higher lows | Look for longs | | Downtrend | Lower highs + lower lows | Look for shorts | | Consolidation | Range-bound, no clear direction | Hands off / cautious | **Rules:** - Only trade trending markets — trending markets offer the best opportunities - If the higher TF is unclear, drop one timeframe lower (e.g., Daily unclear -> check 1H) - If still unclear after dropping one TF, do NOT trade - Check the past 20-40 sessions on the daily chart for trend assessment --- ## Step 2: Location — Where to Place Trades Identify key Points of Interest (POIs) where risk is lowest and reward is highest. ### POI 1: Old Highs and Old Lows - Classic swing highs/lows with liquidity above and below - Use as: entry zones (break+retest), profit targets, stop-loss placement - After a sweep of these levels, look for reversal entries in the opposite direction - These are your external liquidity levels ### POI 2: Previous Day Highs and Previous Day Lows (PDH/PDL) - Fresh levels marked every day — heavy liquidity concentration - **No directional bias needed** — tradeable both long and short - Act as support/resistance with multiple touches over time - Very high reaction rate when price revisits these levels - Best setups: break above PDH then retest from above = long; rejection at PDH = short to PDL ### POI 3: Opening Print + Previous Day Close - **Opening print** = first candle of NY session open (9:30 AM EST) — heavy liquidity - **Previous day close** = 4:00 PM EST close - Gaps between close and open create imbalances; price gravitates toward gap fill - Best on NYSE instruments (stocks, S&P, Nasdaq futures) - Pattern: Gap up -> push higher -> retrace to fill gap at opening print -> reaction --- ## Step 3: Execution — When and How to Enter ### Timeframe Alignment (Two-Timeframe Rule) Entry timeframe should be ~2 timeframes below the narrative/location timeframe. | Narrative TF | Entry TF | Style | |-------------|----------|-------| | Weekly / Daily | Daily / 4H | Position trading, long-term | | 4H / 1H | 1H / 15M | Swing trading, longer day trades | | 15M | 5M / 1M | Day trading / momentum trading | **Why:** Going too far apart (e.g., Daily narrative -> 1M entry = 6 TFs) causes confusion. You lose context of the higher TF thesis by the time you reach the entry TF. ### The Three-Bar Confirmation Entry The core entry model. Price must be pulling back into a key POI on the lower timeframe. **Candle 1 — Lead Candle:** - Pushes price toward the key level (down for long setups, up for short setups) - Evaluate: How aggressive is the move? Big candle = strong opposition. Small body = weak pullback (better for reversal) **Candle 2 — Reaction Candle (MOST IMPORTANT):** - Watch form in real time at the key level - Bullish: Are buyers stepping in? Price keeps getting pushed back above the level despite selling pressure? - Close above the POI = bullish. Flip to green = even better - Color matters less than the reaction quality at the level **Candle 3 — Confirmation Candle:** - Confirms if the setup works or fails - Closes above C2 high = fairly bullish, expect continuation - Closes above C1 high = VERY bullish, strong continuation - Big wick rejection / closes at lows / turns red = setup FAILING, expect breakdown ### Entry Models (Conservative to Aggressive) | Entry | Trigger | Stop | Probability | |-------|---------|------|-------------| | Conservative | C3 closes bullish | Below C3 low | Highest | | Standard | C2 closes, enter immediately | Below C2 low | Medium (no confirmation yet) | | Aggressive | C3 breaks C2 high while forming | Below C2 low | Lower (requires strong direction + location) | **When to use aggressive entry:** ONLY when Step 1 (direction) and Step 2 (location) are crystal clear. Strong HTF trend + price at key level with multiple confluences. ### Bearish Three-Bar (Inverse) Same pattern inverted for short setups: - Lead candle pushes up into resistance/level - Reaction candle: sellers step in, weak closure, close below level - Confirmation candle: breaks below reaction candle low, bearish close - Entry: short with stop above confirmation area --- ## Decision Flowchart ``` 1. Check Direction (higher TF) ├── Uptrend (HH/HL) --> Look for LONGS only ├── Downtrend (LH/LL) --> Look for SHORTS only └── Unclear/Range --> Drop 1 TF or STAY OUT 2. Mark Location (POIs on narrative TF) ├── Old highs/lows (swing structure) ├── PDH / PDL └── Opening print / prev day close 3. Execute (entry TF, ~2 TFs below narrative) ├── Wait for price to reach POI ├── Watch three-bar pattern form │ ├── Lead --> Reaction (buyers/sellers?) --> Confirmation │ └── If C3 confirms --> ENTER with stop below pattern └── If C3 fails --> NO TRADE, wait for next setup ``` --- ## Implementation ```python import pandas as pd import numpy as np def detect_three_bar_confirmation(df: pd.DataFrame, levels: list[float], tolerance_atr_mult: float = 0.5) -> list[dict]: """Detect three-bar confirmation patterns at key levels. Args: df: OHLCV DataFrame levels: Key price levels (PDH, PDL, old highs/lows, etc.) tolerance_atr_mult: How close price must be to level (in ATR multiples) Returns: List of detected three-bar signals with entry/stop/strength """ atr = (df["high"] - df["low"]).rolling(14).mean() signals = [] for level in levels: for i in range(2, min(20, len(df))): idx = len(df) - i if idx < 2: continue lead = df.iloc[idx - 2] reaction = df.iloc[idx - 1] confirm = df.iloc[idx] tol = atr.iloc[idx] * tolerance_atr_mult # Bullish: lead pushes down to level, reaction holds above, confirm breaks higher if (lead["low"] <= level + tol and lead["close"] < lead["open"] and reaction["close"] > level and confirm["close"] > reaction["high"] and confirm["close"] > confirm["open"]): strength = "STRONG" if confirm["close"] > lead["high"] else "MODERATE" signals.append({ "type": "bullish_three_bar", "level": level, "idx": idx, "entry": round(confirm["close"], 5), "stop": round(min(lead["low"], reaction["low"]) - atr.iloc[idx] * 0.1, 5), "strength": strength, "signal": f"BUY - three-bar at {level} ({strength})" }) # Bearish: lead pushes up to level, reaction holds below, confirm breaks lower if (lead["high"] >= level - tol and lead["close"] > lead["open"] and reaction["close"] < level and confirm["close"] < reaction["low"] and confirm["close"] < confirm["open"]): strength = "STRONG" if confirm["close"] < lead["low"] else "MODERATE" signals.append({ "type": "bearish_three_bar", "level": level, "idx": idx, "entry": round(confirm["close"], 5), "stop": round(max(lead["high"], reaction["high"]) + atr.iloc[idx] * 0.1, 5), "strength": strength, "signal": f"SELL - three-bar at {level} ({strength})" }) return signals def get_daily_pois(df_daily: pd.DataFrame) -> dict: """Extract key Points of Interest from daily data. Returns PDH, PDL, previous day close, and old swing highs/lows. """ if len(df_daily) < 2: return {} prev = df_daily.iloc[-2] pois = { "pdh": prev["high"], "pdl": prev["low"], "prev_close": prev["close"], } # Old swing highs/lows (last 20 sessions) from scipy.signal import argrelextrema recent = df_daily.tail(20) swing_highs = argrelextrema(recent["high"].values, np.greater, order=3)[0] swing_lows = argrelextrema(recent["low"].values, np.less, order=3)[0] pois["old_highs"] = [round(recent["high"].iloc[h], 5) for h in swing_highs] pois["old_lows"] = [round(recent["low"].iloc[l], 5) for l in swing_lows] return pois ``` --- ## 9:30 AM Open Scalp — Time-Specific Application > Source: "The Best 9:30 AM 5 Minute Scalping Strategy (Simple & Proven)" by Jdub Trades Same DLE framework applied to the NY open window only. ### Rules - **Timeframe:** M5 entries only - **Window:** 9:30–11:00 AM EST (13:30–15:00 UTC) — close all positions by 11 AM regardless - **Instruments:** Equities and US indices (USTECm, US500m, US30m, individual stocks) ### Pre-Market Checklist (before 9:30 AM) Mark these levels BEFORE the open — no marking during live price action: 1. PDH and PDL 2. Previous day close (4:00 PM EST) 3. Pre-market high and low 4. H1 trend direction (bullish = HH/HL; bearish = LH/LL) ### Opening Print Setup - **Opening Print** = the M5 candle that closes at 9:35 AM (first complete 5-min candle) - Mark its high and low — primary POI for the entire morning session - **Gap fill bias:** If 9:30 open ≠ previous close, expect first move to fill gap before trend resumes - **Entry model:** Same 3-bar confirmation at the opening print level or PDH/PDL ### Gap Fill Logic ```python def gap_fill_bias(open_930: float, prev_close: float, atr_daily: float) -> dict: gap = open_930 - prev_close gap_pct_atr = abs(gap) / atr_daily return { "gap_present": gap_pct_atr > 0.1, "gap_direction": "UP" if gap > 0 else "DOWN", "fill_target": prev_close, "bias": "Expect price to fill toward prev_close FIRST before trending", "note": "Only trade WITH trend after gap fill completes", } ``` ### 9:30 AM Scalp Entry Checklist ``` 1. H1/D1 trend direction confirmed? Y/N 2. PDH, PDL, prev_close marked? Y/N 3. Opening print (9:35 M5 candle) marked? Y/N 4. Gap present → gap fill likely first? Y/N 5. Price at key level (POI)? Y/N 6. 3-bar confirmation forming? Y/N 7. Time before 11:00 AM EST? Y/N → ENTER only if all Yes ``` --- ## Daily Bias Framework — Finding Direction Before the Session *Source: "The Ultimate Daily Pattern Trading Strategy (How To Find Daily Bias)" — Jdub Trades* ### Prior Day Candle Bias Signals Read the previous daily candle every morning to set bias: | Prior Day Candle | Signal | |------------------|--------| | Closed bullish, above prior high | Bullish — look for continuation longs | | Closed bearish, below prior low | Bearish — look for continuation shorts | | Long wick rejection at resistance | Bearish — sellers showing strength | | Long wick rejection at support | Bullish — buyers showing strength | | Doji / indecision at key level | No bias — wait for next candle to resolve | | Closed inside prior day range | Range-bound — trade extremes only | **Rule:** No clear candle signal = no daily bias = no trade. Skip the day. ### Daily Dealing Range (Premium / Discount) ``` Top of range (PDH, swing high, D1 resistance) = Premium zone Midpoint = Fair Value Bottom of range (PDL, swing low, D1 support) = Discount zone Bullish bias + Price in Discount → A+ long setup Bearish bias + Price in Premium → A+ short setup ``` ### Daily Location Quality Ranking | Grade | Location | Condition | |-------|----------|-----------| | A+ | D1 OB or D1 FVG | Fresh (first touch) + aligned with bias | | A | PDH / PDL | Confirmed BOS in same direction | | B | Weekly open level | General trend direction aligned | | C | Old swing high/low | Multiple prior touches — avoid | **Weekly open rule:** Price above weekly open = bullish weekly bias; below = bearish. Monday's high/low acts as reference range for the week. ### Daily Bias Entry Model ``` 1. D1 bias confirmed (bullish/bearish from prior candle + structure) 2. Price at key daily location (PDL, D1 OB, D1 FVG, weekly open) 3. Drop to H1 chart 4. Wait for H1 CHoCH in the direction of D1 bias 5. H1 displacement candle + H1 FVG formed 6. Enter at H1 FVG | Stop: below D1 location (distal line) 7. Target: next D1 level (PDH, swing high, D1 supply zone) ``` H1 CHoCH inside a D1 zone = institutional engagement confirmed = entry trigger. ### Pre-Session Daily Bias Checklist ``` [] D1 swing structure: HH/HL (bullish) or LH/LL (bearish)? [] Prior day candle: what did it do? (BOS, rejection, inside bar) [] Where is price in the dealing range? (Premium / Discount / Neutral) [] BIAS: Bullish / Bearish / No bias (wait) [] Key levels marked: PDH, PDL, D1 OB/FVG if present [] Price alerts set at key levels [] At session open: price at level? → watch H1 CHoCH + 3-bar → enter price NOT at level? → wait, do not force ``` **One trade per day is enough** — the daily framework produces 1–3 setups per week; selectivity is the edge. --- ## 1-Minute Opening Range Break & Retest Scalp > Source: "My Simple 1 Minute Scalping Strategy To Make $10,000/Month (Backtested Results)" — Jdub Trades A **no-bias, fully mechanical** variant — simpler than DLE, doesn't require directional conviction. ### 3-Step Checklist ``` Step 1: Mark PDH + PDL (daily TF) → these are your TARGETS