With the four-layer trading framework, Krown puts a system in place to examine every market move in detail. It is a way for traders to be confident in their decisions and make calls with greater certainty.
Breaking Down Krown’s Four-Layer Trading Framework
He has covered this on his channel: there is an order to how a trade or investment should be made. First comes the trend, then you have to look at the market’s structure, check the volatility, and lastly, the impulse. The idea is to build a process that is as logical as it is repeatable, no matter where a trader is in their career.
The Role of Trend and Structure in Trading Decisions
For Krown, solid trend analysis is what his four-layer trading system is built on. He will be the first to tell you that there is no need for any fancy indicators to see where the market is heading; in most cases, just watching the price action is all it takes to put a trade in perspective.
Then comes the work of structure. It is a matter of looking at support and resistance. But as Krown sees it, those are not set in stone—they move with the trend. Being able to spot when the structure has changed is what allows for on-the-fly adjustments to one’s approach.
Assessing Volatility and Impulse for Market Timing
The third of Krown’s layers is volatility, for which the BBWP indicator is an essential part. In Krown’s view, what makes BBWP so useful is that it puts present-day volatility in context with the past, giving a sense of how prone the market is to big moves. It is a matter of keeping an eye on these fluctuations to be ready for any abrupt changes and to handle risk in a more informed way.
Then there is impulse, the last piece of the puzzle. Krown’s approach is to keep it simple and rely on one solid measure of momentum like the RSI. There is no need to clutter up the charts with a host of different tools. If the price and the RSI start to diverge, it is often a sign the trend is running out of steam and a reversal may be coming, which can be put to good use.
Leveraging Technology: Central Command and AI Strategies
There is value in turning to a modern system such as Central Command, as Krown sees it. With this kind of platform, a trader can put together and test a new strategy without having to write any code, thanks to AI. In Krown’s view, that sort of technology not only makes for a more efficient way to build out a plan, but it also puts some of the more sophisticated methods of trading within reach of more people.
Source — Krown: https://www.youtube.com/watch?v=hNfjyrJEytI
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