Barky’s Diagonal Entry Model
BT/RT lines are location alerts, not entry signals. They mark where price has made a significant new high or low — identifying the level where the negotiation between continuation and reversal begins.
9BT / The Probe – BT / Confirmation – RT / Failed Break Reversal – EMA9 Backtest Level
OVERVIEW
BT /RT Line Alerts
When price breaks a setup high or low, the BT/RT line fires at that level. It does not tell you whether the break is genuine or false — that context comes from EMA structure, the surrounding imbalance, and whether the move displaced cleanly or merely swept a pivot. What it does tell you is that a significant level has been crossed and one of three things will happen next: an immediate EMA9 push through (9BT), a backtest confirmation (BT), or a failed break reversal (RT). The line marks the location, after which a directional break contraction has to form. That is always the lower timeframe Diagonal Entry Model.
THE THREE STAGES – ONE MOVE, THREE POTENTIAL DIRECTIONS
EMA 9BT – The Probe
EMA9 actively pushingWhen the higher low or lower high is already in place as the line triggers and the EMA9 is actively pushing price through the level, the immediate break can be entered. Without that structure, the 9BT can work, but has a high rate of failure — stop at the base of the push candle, anticipating the most common outcome: immediate exhaustion that creates the pullback and sets up the BT.
BT Concept – Confirmation Entry
Price closes away from the EMA9, then forms a two candle pull back into it, forming a higher low (or a lower high in downtrends). When this backtest respects the EMA9 the entry can be taken as price pushes back through the BT/RT line, and confirms trend structure when a new high (or low in downtrends) is made. It always forces at least some stop runs and fresh breakout entries, sometimes creating an explosive move, other times producing 1R or more. This setup has the highest win rate of the entire system. When all parameters are met as described above, the win rate is 97%, tested and executed over more than three years of price action.
Without a higher low (uptrend) or lower high (downtrend), there is no BT — only an untested 9BT.
Reversal Trigger Concept – RT – Failed Breakdown
Failed break, range reclaimed
The backtest sets up but instead of confirming, price loses the EMA9, closes back inside the range and plots a Control Bar instead. A failed breakdown exposing the opposing side’s stops. The first candle to close back inside the range is the RT entry. The confirmation is the Control Bar that forms inside the EMA9/21 cloud and plots a signal line. Target: EMA9 primarily, opposite boundary of the range secondary. Worth a risk if minimum 1:1 R:R can be projected towards the first target. At a higher timeframe level, the RT is often the earliest and best-risk entry in the whole DEM sequence.
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The elegance of this system: the BT trader and the RT trader are watching the exact same candle configuration — one needs it to break out, the other is waiting for it to fail. Same setup, opposite sides, both with defined risk.
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The 9BT is the probe: it initiates the breakout. A close beyond the range allows for the BT to form and confirm the break out confirmation, validating a BT entry. Similarly, the RT at the top of a failed swing sets up another BT on the return. Each stage feeds the next.
TRADING THE SIGNAL LINE
Day Trades · H1 → M5
H1 SIGNALS / M5 RISK
01 – H1
BT/RT Line Alert Fires on H1
A prior setup high or low has been broken. Note the level — this is where the negotiation begins. Assess EMA9 proximity and structure.
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02 – H1 Context
Identify the Stage
EMA9 close and pushing? → 9BT. Price pulling back to retest? → BT setup forming. Price closing back inside the range? → RT setup.
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03 – H1 → M5
Zoom to M5 for the DEM
The H1 BT/RT line is the HTF context level. Drop to M5 to find the DEM setup — CB signal, curl, or reversal bar — that confirms that the lower timeframe is ready to trend, providing the risk defined entry and stop.
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04 – H1 EMA9 BACKTEST LEVEL
Invalidation
After a break, the orange 9BT level marks the last EMA9 rejection zone. A close beyond it confirms the BT entry has failed.
Swing Trades · H4 → H1
H4 SIGNALS / M5 RISK
01 – H4
BT/RT Line Alert Fires on H4
A prior swing high or low has been broken. Note the level — this is where the negotiation begins. Assess EMA9 proximity and structure.
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02 – H4 Context
Identify the Stage
EMA9 close and pushing? → 9BT. Price pulling back to retest? → BT setup forming. Price closing back inside the range? → RT setup.
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03 – H4 → H1
Zoom to H1 for DEM
The H4 BT/RT line is the HTF context level. Drop to H1 to find the DEM setup — CB signal, curl, or reversal bar — that confirms that the hourly timeframe is ready to lead, providing the risk defined entry and stop.
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04 – H4 EMA9 BACKTEST LEVEL
Invalidation
After a break, the orange 9BT level marks the last EMA9 rejection zone. A close beyond it confirms the BT entry has failed.
IN CONFLUENCE WITH OTHER SIGNALS
Gap Leads · BT/RT Confirms
HIGH CONVICTION
01
Continuation Gap confirms a structural break and establishes direction
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02
BT/RT line marks the level to watch for the backtest
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03
Control Bar signal forms at the EMA9 backtest inside or near the gap zone — providing the risk-defined entry
BT/RT Leads · Gap Confirms
REQUIRES CONFIRMATION
01
BT/RT line marks the level to watch and establishes intended direction
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02
Control Bar signal forms at the EMA9 backtest — providing the risk-defined entry
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03
Continuation Gap confirms the structural break and direction as price accelerates away
SIGNAL REFERENCE
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The orange 9BT level is the final invalidation line. It marks the EMA9 backtest zone after a break. A close beyond it means the break has failed. This level is only valid while price remains on the correct side of the EMA9 — a close through the EMA removes the context entirely.
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The BT/RT line does not tell you if the break is genuine. A break that sweeps an old high or low with immediate rejection reads very differently from one that displaces cleanly through structure. That context comes from the surrounding imbalance, which boundary was broken, and whether the move took out a significant pivot or merely a local one.
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Immediate breakout entries without structure are gambling. The 9BT is only valid when the higher low or lower high is already in place. Without that, the break is untested and the most probable outcome is exhaustion — which is the setup, not the entry.
TIPS
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Set the BT/RT alert, then assess on arrival. The alert fires at the break — you don’t need to be watching. When it fires, come to the chart and identify which stage is setting up. The decision is made at the chart, not at the alert.
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The BT is a patience trade. The most common mistake is entering on the 9BT without structure and getting stopped out, then missing the BT because confidence is gone. The BT entry’s reliability comes precisely from waiting — the higher low must be in place before the entry is valid, and price has to be trending. A 9BT out of a turning cloud is not an edge, it is a gamble.
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When the EMA9/21 cloud is turning or tested multiple times, expect RT over BT. A flattening cloud means the trend is losing conviction. In this environment, 9BT entries fail more often than they succeed, and you’ll rarely see a solid BT entry form — the RT becomes the higher probability play, because converging trend traps breakout traders. The RT capitalises on those stop runs, taking at least 1R every time.
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Each stage feeds the next. Don’t treat 9BT, BT, and RT as separate strategies. The 9BT exhaustion initiates the BT setup. The RT at the failed swing sets up the BT on the return. Reading the sequence and understanding the model is what separates a structured entry from an impulsive gamble.
SETTINGS — CONTROL BAR & CONTINUATION SIGNALS GROUP
SHOW BT/RT LINES
Master toggle for BT/RT lines and labels. Disables all drawings while alert conditions continue to run.
9BT – SHOW LINES / LABELS
Toggles the orange 9BT level lines and price labels independently. Hidden by default. EMA9 rejection is easy to spot.
BT/RT LINE LENGTH
Controls how many bars to the right the line extends. The default setting accounts for the average setup time.
BT/RT LINE STYLE / WIDTH
Dashed reduces clutter; solid is easier to spot at a glance. Width 1–5 for visibility preference.
MAX BT/RT LINES ( 0 = UNLIMITED )
Setting 1 keeps one bullish and one bearish line — two total. Increase for backtesting. For live trading, 1 is cleanest.
MAX 9BT LINES ( 0 = UNLIMITED )
Controls historical 9BT level retention. Setting 1 means one active level per direction — sufficient for live use.
ADDITIONAL READING
About BT/RT Setups
A setup requires an existing trend to trade against. A range is isolated using the most recent setup high and low. Price breaks one boundary in the direction of the trend, triggering the BT/RT line alert, initiating the two-sided negotiation that underlies every continuation and reversal. The three concepts below are not independent entries — they describe the same move unfolding in stages, each one setting up the next.
9BT (EMA9 Push): The probe. When the higher low or lower high structure is already in place as the BT/RT line triggers, and the EMA9 is close and actively pushing price through the level, the immediate break can be entered. Without that underlying trend structure, the 9BT is a false break and requires a backtest to confirm. The stop sits at the base of the push candle in anticipation of the most common outcome — immediate exhaustion — which creates the first pullback along the EMA9 and sets up the BT.
BT (Backtest Entry): The confirmation entry, with a 97% success rate compared to the 9BT’s 70% failure rate. It is the most disciplined of the three because it requires the ability to suppress FOMO. Price breaks the level, closes away from the EMA9, then pulls back into it — sellers attempting to maintain balance and force price back inside the range. When the EMA9 holds, it confirms that the break is real and pushes price back through. That failed attempt to reclaim the range is the entry, triggering at least the stops of those that attempted to reclaim the range — but because the BT/RT line alert had fired, price is also making a significant new high or low, which draws breakout traders into the play. The combination of forced stop runs and fresh breakout entries is what creates the explosive follow-through that makes the BT so reliable. Without a higher low in uptrends or a lower high in downtrends, there is no BT — only an untested 9BT.
The orange 9BT level marks the EMA9 backtest level and the final invalidation line: a close above it confirms the break has failed.
RT (Reversal Trigger): The same formation that sets up the BT entry forms the reversal setup. When a backtest sets up, but doesn’t trigger the confirmation entry but instead closes back inside the range, it sets up a failed breakdown, exposing the opposing side’s stops. The first candle to close back inside the range is the RT entry, targeting EMA9 primarily, with the opposite boundary of the identified range secondary. The minimum requirement is a 1:1 risk/reward ratio to the first target. The RT is essentially a scalp, but when the setup coincides with a higher timeframe context, the RT is not a standalone signal — it emerges from a specific point within the Diagonal Entry Model, identifying where the earliest possible reversal entry exists, before price sets up a formal breakout consolidation. In practice it proves more consistent than the entry diagonal itself, primarily because the earliest entry offers the best risk/reward by far.
The sequential relationship: These three entries are not independent choices — they describe the same move unfolding in stages. The 9BT push frequently exhausts and creates the very higher low that validates the BT. The RT at the top of a failed swing sets up the BT entry on the return. Understanding that each stage feeds the next is what separates a structured, risk-informed entry from an impulsive one.
The elegance of this is that the BT trader and the RT trader are watching the exact same candle configuration — one needs it to break out, the other is waiting for it to fail. Same setup, opposite sides, both with defined risk.
What the BT/RT line does not tell you is whether a break is genuine or a sweep. That context comes from the surrounding imbalance structure — which boundary was broken, what timeframe imbalance sits above or below, and whether the move took out a significant pivot or merely a local one. A break that sweeps an old high or low with immediate rejection reads very differently from one that displaces cleanly through structure.
How The Indicator Signals Work Together
Every signal in the indicator is an expression of the same underlying principle: price can only reverse through a failed break or a failed swing. The signals don’t just layer on top of each other — they describe the same move from different angles, and recognising that is what separates a readable chart from a cluttered one.
A BT/RT line fires when price makes a significant new high or low, marking the level that must hold for the move to continue. A CB signal plots when the EMA9 backtest confirms a higher low or lower high at that level — defining the entry. A Continuation Gap confirms that the break was real and that price has left the range behind.
The gap doesn’t always form before the entry. Often it forms as price accelerates away, confirming what the BT/RT line and CB signal already suggested. When all three align, the conviction is highest. When only two are present, the trade is still valid — but the missing piece is worth knowing about.
Each signal alone tells part of the story. Together, they tell you where price came from, where it broke, and whether the break is holding. That is the complete picture, and learning to read it in real time is what the course is for.
The honest version is simpler: the three signals describe one move, they just don’t always arrive in the same order. Sometimes the gap leads, sometimes it trails. The entry is the same either way.