I really wish that I talked about this in my original AMD post. True manipulation, or key level manipulation, is a very very very important part of trading AMD. Normal manipulation is just a push that leaves the previous range or accumulation. The problem with this is that there is no real DOL (draw on liquidity), which often causes premature entries and a higher loss rate. I'm not saying that you can't be profitable trading non-true manipulation, but it makes it harder. True manipulation comes out of the range and then hits a key level (hence "key level manipulation"). The manipulation hitting a major DOL level gives a lot more power to the distribution.
Same range · same entry
No key level — the lossLoss
Price leaves the range and rolls over, so the entry looks the same as always. The problem is that nothing is sitting under it — the nearest real draw on liquidity is PDH, above, and that is where price was going the whole time. The short is fighting the actual target.
How to mark your key levels
Keep it simple and mark these.
PDH / PDLDaily
Previous day high & low
The highest and lowest price of yesterday's session, carried onto today's chart.
The most watched level on the chart. Every timeframe can see it, so the stops pile up on both sides of it.
AH / ALDaily
Asia high & low
The high and low printed during the Asian session, before London opens.
Asia ranges tight and slow, which leaves a clean box of resting liquidity for London and New York to come take.
LH / LLDaily
London high & low
The high and low of the London session, marked once London closes out.
London sets the day's first real range. New York spends most of its morning reaching for one side of it.
These are the ones I mark daily, but here are some other ones you can mark if you want extra confluence.
DH / DLConfluence
Data highs & lows
The extremes left behind by a news release — CPI, NFP, FOMC.
News candles move fast and leave thin, untraded price behind. Those wicks get revisited later.
WH / WLConfluence
Weekly high & low
Last week's extremes, left on the chart through this week.
Higher timeframe traders manage positions off these, so a sweep of one is worth more than a sweep of an intraday high.
MH / MLConfluence
Monthly high & low
The high and low of the month just gone.
Rarely touched, but when price does reach one it usually means the move has run out of room. Extra confluence, not a signal on its own.
What not to do
One thing I will say, do not fill up your chart with a bunch of bullshit, keep it simple and don't over complicate it. Before you know it you will have a chart full of lines and you will never take a trade again, since you're always at some random level you marked.
Every level you could mark
Twelve lines, so price is never more than a few points from one. There is no such thing as a clean setup on this chart.
The ones you actually trade
The same candles with three levels on them. Now a touch means something, because it does not happen every candle.