Change In State of Delivery (CISD)
Identification Rules
How to recognize when market delivery changes from bullish to bearish or vice versa.
- Market must be in a clear trend (uptrend or downtrend)
- Price must sweep liquidity at a key level (session/daily/weekly highs or lows)
- Price must quickly reverse direction after the liquidity sweep
- Price must close above/below the opening price that initiated the most recent trend
- Look for H-L-LH-LL structure for bullish CISD or L-H-HL-HH structure for bearish CISD
Entry Rules
Optimal timing and price levels to enter trades after confirming the delivery shift.
- Wait for price to retrace to a Fair Value Gap formed by the CISD candles
- Enter long after bullish CISD confirmation
- Enter short after bearish CISD confirmation
Stop Rules
Where to place protective stops to limit losses if the pattern doesn't follow through.
- Place stop loss below the Fair Value Gap for long trades
- Place stop loss above the Fair Value Gap for short trades
Target Rules
How to set realistic profit targets based on the new directional bias after CISD.
- Target 1:2 risk-to-reward ratio minimum
- Look for targets at next significant resistance/support levels
Confluence Factors
Additional signals that strengthen CISD reliability like volume and key levels.
- Fair Value Gaps forming during CISD candles
- Key liquidity levels being swept
- Higher timeframe market structure alignment
- Session/daily/weekly open levels
Failure Modes
Common scenarios where CISD signals false reversals or continues original trend.
- False reversal
- Weak momentum shift
- Choppy market conditions
Common Mistakes
Typical trader errors like entering too early or ignoring market structure context.
- Trading CISD as standalone signal
- Ignoring higher timeframe context
- Not waiting for proper retracement entry