Algorithmic trading is a method of executing trades using pre-programmed instructions or algorithms that automatically trigger trades based on certain conditions. It's a fascinating approach that can help traders make more precise and efficient decisions. Now, let's focus on a specific algorithmic trading model called the TGIF (Thank God It's Friday) setup. This is a day-based algorithmic trading model that can be applied to all assets. As the name suggests, this model is designed to be used on Fridays. The TGIF setup focus is on a market pullback into the current weekly range. It is particularly effective when anchored against higher time frame analysis.
» In the last portion of Friday’s trading, if it hasn't occurred yet, you can expect some retracement of the weekly range. «
When using the TGIF setup it's crucial to approach from a top-down perspective. This means starting with higher time frame analysis, such as monthly or weekly charts, to get a broader view of the market's direction. In candlestick analysis, there is a concept called the ICT Power of 3. This refers to a specific pattern and distribution phase that can indicate a potential reversal or exhaustion in the market. By studying the one-month chart, you identify the weekly range and its key levels. You apply Fibonacci levels to pinpoint the sweet spot where the TGIF setup is likely to occur. You also conduct top-down analysis by examining higher time frame charts to get a broader view of the market's direction. Keep an eye out for the ICT Silver Bullet formation.
To apply the TGIF setup, follow these steps:
- Start by analyzing the higher time frame charts, such as monthly or weekly charts, to get a broader view of the market's direction.
- Identify the Weekly Range Profile and its key levels, such as the High and the Low of the range.
- Use Fibonacci levels to pinpoint sweet spot where the TGIF setup is likely to occur.
- Look for the pullback into the weekly range.
- Pay attention to the ICT Power of 3 pattern in candlestick analysis, which can indicate potential reversals or exhaustion.
- Keep an eye out for the ICT Silver Bullet formation, a powerful pattern that provides valuable insights into market dynamics.
- Combine all these analysis techniques to make informed trading decisions using the TGIF setup.
