The Rule of 7
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01 Context
What is the market doing right now? Is it balanced, imbalanced, or transitioning? Is the setup pro-trend or counter-trend? Without context, every other decision is a guess.
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02 Location
Where is price sitting within the bigger structure? Are we at the highs, the lows, mid-range, or approaching a key area? Location determines whether an opportunity even exists.
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03 Level
Is there a specific price zone worth watching? A decision point where behavior is likely to show itself — a support, resistance, POI, or liquidity cluster. Do we have confluence of multiple levels?
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04 Confirmation
What is the order flow showing at this level? Absorption, exhaustion, initiative — or nothing? This is where the X-ray reveals what candles can't.
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05 Execution
Does the evidence justify the trigger? Aggressive or conservative execution? Can you compound? Not every setup deserves a trade. Execution is earned, not assumed.
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06 Trade Management
How do you protect profit and manage the position? When to de-risk, trail, hold, or exit — based on live behavior, not hope.
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07 Risk Management
Where is the invalidation? How much capital is at risk? No control, no longevity. This is the skill that separates good traders from elite ones.
