Step 2: Configuring Your Chart and Settings

For the Backdraft strategy to work as intended, your chart needs to be set up correctly.

1. Select Heiken Ashi Candles: This is crucial. In the top-left of your chart, click the candles icon and select “Heiken Ashi” from the dropdown menu.
2. Use 1-Minute or higher Timeframes: 
3. Default Settings: Our indicators come pre-configured with the optimal settings for the strategy. You don’t need to change anything.

Your chart is now set up and ready to display the Backdraft signals!

Step 3: Understanding the Basic Rules of a Trade

Flashpoint Quick Trading Guide 

1) What Flashpoint Is

Flashpoint is a precision system built around liquidity sweeps, reaction at key HTF zones, displacement, and a Fibonacci pullback entry with strict confirmation (arrow + candle colour).

2) Direction Is Automatic (Trade the Colour)

Flashpoint determines the higher-timeframe bias automatically.

• Green = bullish (longs only)

• Grey = bearish (shorts only)

If the zone/lines are telling you one direction, don’t fight it unless you accept higher risk.

3) Zones of Interest (Where Trades Start)

Before you think about entries, identify where price is relative to the key zones:

• H1 High/Low liquidity zones (colour-coded)

• Previous Day High / Low (PDH / PDL)

• H1 Fibonacci levels (golden zone is key)

• Asian Session High/Low sweeps (still valid liquidity events)

Tip: Set alerts at these zones so you only pay attention when price reaches “decision areas.”

4) The Setup Logic (What You’re Waiting For)

A) Reaction + Sweep

You’re trading liquidity sweeps, not break-and-retest.

• Bullish idea: price sweeps below PDL / Asian low / green H1 zone, then reverses.

• Bearish idea: price sweeps above PDH / Asian high / grey H1 zone, then reverses.

Rule of thumb:

• PDL sweep = primarily long opportunity

• PDH sweep = primarily short opportunity
  Opposite direction is higher risk (only if confluence supports it).

B) Displacement (Required)

After the zone reaction, you must see clear displacement: a strong, decisive move away from the zone (not choppy/weak).

Stronger setup: you also get a micro BOS (micro break of structure) after displacement.

5) Fibonacci Entry Rules (How You Actually Enter)

Draw the LTF Fib

After displacement:

• Draw your Fib on the entry timeframe (commonly M1 / M2 / M5) from the start of the displacement leg (the swing point where the move began).

• Wait for a pullback to at least 50%.

• The ideal entry area is the golden zone (50%–61.8%).

Invalidation

• If price retraces past 78.6%, the setup is no longer recommended.

• If price breaks the 100% level (full displacement leg), it’s completely invalid.

Important: Flashpoint displays the 50% and 61.8% zone, but the 78.6% is a hidden level used for the stop.

6) Entry Confirmation (Non-Negotiable)

You only enter when BOTH are true:

1. Flashpoint Arrow prints after the pullback into the Fib zone

   • No arrow = no trade

   • Arrows during displacement do not count.

2. Correct candle colour

• Buys: green candles

• Sells: grey candles

• Gold candles are transition candles — safer to wait for the colour change.

Correct sequence:
Zone reaction → displacement → draw Fib → pullback to 50%+ → arrow prints → enter on correct candle colour.

7) Risk & Trade Management (Simple Rules)

Stop Loss

Place SL at the 78.6% Fibonacci level of your LTF Fib.

Targets

• Counter-trend: target 1R

• With trend: target 1.5R+

Management

Do not manage trades:

• no partials

• no moving to break even
  Set entry, SL, TP — let it play out.

8) When to Skip a Trade (Fast Filter)

Skip if any of these are true:

• No clear sweep / no clean reaction at a key zone

• No real displacement (choppy / corrective)

• Pullback goes too deep (past 78.6%)

• No arrow after pullback

• Candle colour not aligned / stuck in gold transitions

9) Alerts (Quick Setup)

TradingView alert setup (fast method):

1. Add Alert (right-click chart or Alt + A)

2. Set Condition = “Flashpoint”

3. Choose alert type (signals or touches)

4. Set expiry/notifications → Create

Recommended:

• Use “With Trend” signal alerts to filter out counter-trend signals.

• Enable Touch / Any Touch alerts so you’re notified when price hits zones of interest.
  
  Please read the Flashpoint Guide.