Built For
Instruments: Forex/Futures
Trading Style: Day Trading
Playbook Overview
The Nexus Blast Strategy is a simple, mechanical trading system designed for traders who don’t yet have a consistent strategy. It helps you spot high-probability reversal trades using price action on the 5-minute chart.
The idea is to wait for the market to grab liquidity (by taking out a key level), then catch the reversal once a shift in structure is confirmed. The entries are based on Fair Value Gaps (FVGs) that appear after a break of structure, and the strategy works best on S&P 500 (ES Futures), but you can test it on Forex, Gold, or other assets.
Core Concepts
Before using the Nexus Blast strategy, it is important to understand a few key concepts. These ideas are used throughout the strategy and help you know where to enter and exit trades.
Fair Value Gap (FVG)
A Fair Value Gap forms when the market moves quickly and leaves a gap between three candles. It shows an imbalance where price did not trade fairly. Price often returns to this gap before continuing. In this strategy, the FVG is used as the entry zone.
Break of Structure (BoS)
A Break of Structure happens when price closes above a recent high or below a recent low. It shows that the direction of the market is changing. After a liquidity sweep, a BoS confirms that buyers or sellers are taking control.
Premium and Discount
Premium and Discount help us determine if the price is at a good level to buy or sell. Use the Fibonacci tool to find the 50% level of a move.
- The upper half (above the 50% line) is called premium. This is where you look for sell setups.
- The lower half (below the 50% line) is called discount. This is where you look for buy setups.
In this strategy, you only take long trades if the FVG is in discount, and only take short trades if the FVG is in premium.
Playbook Rules
Time Frame
Use only the 5-minute chart. All setups, entries, and exits are based on this time frame. No higher time frame is needed.
Liquidity Grab
Each trade starts after price takes out one of the key session levels:
- London High or Low.
- New York AM High or Low.
Once price breaks above a session high or below a session low, this is your signal that liquidity has been taken. You only look for trades after this happens.
Break of Structure (BOS)
After the liquidity grab, price must shift direction. Look for a break of structure, which happens when:
- Price closes above a recent high.
- Price closes below a recent low.
This candle should show strong displacement (not just a weak close). Ideally, this BOS candle also cuts through a previous FVG, this adds strength to the setup but is not required.
Fair Value Gap (FVG) Entry
Once the BOS is confirmed, you need to see a clean 5-minute Fair Value Gap form during or right after the break. This is where you will place your entry. A valid FVG looks like this:
- A 3-candle gap where the middle candle’s body does not overlap with the wicks of the candles before and after.
- Price moved fast here, creating imbalance.
- This is your entry zone.
Premium and Discount Zones
Use the Fibonacci tool from swing low to swing high (or vice versa) to find the 50% level:
- Above 50% = Premium zone → where you look for shorts.
- Below 50% = Discount zone → where you look for longs.
Only enter trades if the FVG is in the correct zone:
- Long trades must have the FVG inside the discount area.
- Short trades must have the FVG inside the premium area.
This ensures you’re buying low and selling high.
Entry, Stop Loss, and Take Profit
Entry
Use a limit order at the FVG. If price returns to fill the gap, you’ll be entered into the trade.
Stop Loss
Place the SL at the most recent swing low (for longs) or swing high (for shorts). Make sure it sits beyond the liquidity grab to avoid being wicked out.
Take Profit
Target at least a 2R reward. You can also:
- Take partials at 2R and leave a runner.
- Target the next liquidity level.
- Exit near 50% level of the recent trading range.
Trade Management
Once price hits 1R, you can:
- Move stop loss to breakeven.
- Take partial profits.
- Let the rest run to 2R or key levels.
Avoid trades near red-folder news events. If high-impact news is scheduled, skip the setup.
Factors for High Probability Setups
- FVG created on or before the break of structure (stronger reversal is required).
- FVG for entry overlaps with an iFVG (or balanced price range).
- Trade takes place during 'Silver Bullet' hours (10am-11am EST or 2pm-3pm EST).
Trade Breakdown
Trade Example 1 (Short Trade)
Liquidity Grab:
Price sweeps above the London High. This is our liquidity grab and signals we look for a short setup.
Break of Structure (BOS):
After sweeping the high, price breaks below a recent swing low. This confirms a shift in structure from bullish to bearish.
Displacement & FVG:
The move down creates a strong displacement and forms a Fair Value Gap (FVG). This FVG becomes our entry zone.
Premium Zone Check:
The FVG is located in the premium area of the recent trading range. This confirms it’s a valid area to sell from.
Entry and Stop Loss:
Wait for price to return to the FVG. Enter a short when it fills the gap. Place the stop loss just above the swing high (above the FVG zone).
Target (TP)
Target 1:2 RR minimum. TP is placed at a clear liquidity level below (highlighted blue zone).
Trade Example 2 (LongTrade)
Liquidity Grab:
Price sweeps below the London Low. This is our liquidity grab and signals we look for a long setup.
Break of Structure (BOS):
After sweeping the low, price breaks above a recent swing high, confirming a shift from bearish to bullish.
Displacement & FVG:
The upside move leaves behind a Fair Value Gap. This becomes our long entry zone.
Discount Zone Check:
The FVG is in the discount area of the move (below the 50% of the range), making it a good area to buy.
Entry:
Wait for price to return to the FVG. Enter a long when it taps into the zone.
Stop Loss:
Stop loss goes below the recent swing low under the FVG.
Target (TP):
Target at least 1:2 RR. The TP is set at a clean liquidity level above (marked blue zone).
