Full transcript
Intro
0:00If I can figure out where a move to here
0:01is more likely than a move to here a few
0:03times per day, I now have a simple,
0:05repeatable, systematic approach to
0:07trading to be able to capitalize on
0:08opportunities. Okay, I've been trading
0:10for over 8 years. I've tested out
0:11hundreds of strategies and spent
0:13thousands of hours figuring out what the
0:15most simple and effective way to trade
0:16is using the model that I'm going to be
0:18sharing with you in today's video. Not
0:19only did I hit my largest single day P&L
0:22last week and clocked one of the best
0:23starts to my trading month in my career,
0:25but I've also got a ton of amazing
0:26amount of feedback. So, I'm going to
0:27outline the strategy fundamentals in the
0:29steps to follow. Then, I'm going to run
0:31through a mock trade example and show
0:32you all of the setup criteria and how I
0:34actually execute on these trades. Then,
0:36I'm going to show you live examples of
0:37me taking these trades in real time so
0:39you can see inside my decision-making.
0:41Then, at the end, I'm going to show you
0:42the extra layers of confidence that I
0:44use on each trade called confluences and
0:46how I use those to push up my win rate
0:47and be a little bit more selective on
0:49the trades that I do take. It doesn't
0:50have to be that complicated. You don't
0:51need to learn a thousand different ICT
0:53models or use any level of guesswork as
0:55long as you lock in and process the
0:56information that I'm going to give to
0:57you. So, you'll get a full look inside
0:59some of the strategy and framework that
1:01I've been using over the past couple
1:02months to have some of the best trading
I Made $12,723 In 2 days of trading
1:03of my career. So, let's get into it. All
1:05right. So, like I said, over the past
1:06several weeks, I've had some of the best
1:08trading of my entire career. This is the
1:10largest single trade that I've made
1:12using this strategy that I took just a
1:14few days ago. and understanding some
1:16simple analysis allows me to pick out
1:18perfect spots, let the market trade into
1:20my direction. And like I said, that's
1:21basically how I've been able to crush it
1:23just in a few days. Now, it doesn't mean
1:24that this is a straight line and this
1:26just happens every single day. Of course
1:27not. But the goal is to be able to put
1:29yourself in a position where you're
1:31repeatable, you have a strategy, and
1:32then you follow that daily so you can
1:34optimize over time and actually have
1:36proof of concept and execute on it. One
1:38of the most important things to
1:39understand and something to make sure
1:40that you're not doing is to keep your
1:42trading from being too abstract. So, an
1:44easy mistake to make is that have
1:46strategies that are way too confusing
1:48and you're not able to measure it
1:49properly and you're also not able to be
1:51repeatable. Just like any elite person
1:53at a sport, they're able to keep their
1:55process so refined and repeatable that
1:56they're able to execute it when their
1:58nerves are up and they're able to fall
1:59back on their systems. Okay? And when
2:01we're talking about professional
2:02trading, we need to be able to do the
2:03same exact thing. So, obviously, the
2:04trading strategy can't be too simple
2:06because then it's not going to be
2:07effective because you're not filtering
2:08through the data enough. that the more
2:10simple you can get once you get to that
2:11successful threshold, the easier it's
2:13going to be to be able to be repeatable.
2:15So having a simple checklist that you
2:16follow that you go through your
2:17repetitions each time is better than
2:19having too much abstraction where you're
2:20like, I think this is going to happen. I
2:22have a feeling this is going to happen
2:23and having way too much on your chart.
2:25You need to keep it simple. And if you
2:26look at professional traders, their
2:28charts are going to be very minimal,
2:29most hardly use many indicators and
2:31they're mostly reading price action.
2:33This is something that you'll realize as
2:34you get further into the game.
2:35Everyone's trading the same information,
2:36has the same access to basically all of
2:39the tools. So the only thing that's
2:40going to separate a successful trader
2:41from a trader that is not successful is
2:43how they're able to structure themselves
2:46inside of this whole free world where
2:47you have infinite ways to try to make
2:49money. It's up to you to create that
2:50framework, that discipline, and then get
2:52the desired result out of that
2:53framework. So that's what I'm going to
2:54be sharing with you today. So after 8
2:56years of doing this, I can tell you that
2:57even though trading is advanced, you can
2:59really boil it down to three simple
3:01general things. And if you focus on
3:03this, it's going to sort of be your
3:04northstar from you getting too confused.
3:06So that's observing patterns, average
3:08riskreward and winning percentage. So
3:09the first step, observing a pattern, is
3:11basically if then conditions in your
3:13mind. If this happens, this is likely to
3:15happen. This is what I call
3:16observational level tendencies. So we're
3:18really not putting pen to paper trying
3:19to analyze that information on a deep
3:21level. We're just looking at it, seeing
3:23what happens, and seeing if we can start
3:25to develop ways to mathematically
3:27quantify the probability. And the next
3:28thing is calculating average riskreward
3:31and winning percentage. So whenever
3:32we're putting risk on the table, how
3:34much when we're right are we winning
3:36versus how much we're risking. So if you
3:37see say we're risking $100 on a
3:40position, we enter the market at a
3:41certain area. If the price moves down to
3:43this level first, we're losing $100.
3:46That's our risk on the position. If the
3:48market moves like this, it moves to this
3:49level before this level. So we're making
3:51say for example 300. So now we have a
3:543:1 riskreward. And that mixed with
3:56winning percentage. So how often are you
3:58getting price to move here versus here
4:00first is going to be your winning
4:02percentage which is represented up here.
4:04So you can see in this scenario where we
4:06have a 3:1 all we need is a 30% winning
4:09rate in order to be profitable. If you
4:11have 40 then you're definitely
4:12profitable 50 definitely profitable.
4:14This is truthfully how you can very
4:16simply boil down trading to make sure
4:17that you're staying on the right path.
4:19And this is almost always what we're
4:20focusing on with our private members.
4:21You can see they're always referring to
4:23trades in units of R, right? We're
4:25focused on the process, not necessarily
4:27just showing off big profits or talking
4:28about wins, right? We're talking about
4:30if I'm risking $100, this is $1,250.
4:33If I'm risking $100, this is $3,200.
4:3623r, 2,300, risking 100. 230, risking
4:3910. That's really what you're going to
4:40see more advanced traders talking about
4:42as percentage gains or riskreward units.
4:44Then it becomes more of a game. And
4:45that's really what we're trying to focus
4:46on here. So, let's get into some of the
4:48detailed framework of the strategies
Strategy Concepts & Steps
4:49that I've been using over the past
4:51several weeks. Before we get on to the
4:52charts, I'm going to go over in a
4:54diagram and sort of drill in the sort of
4:56observation level identity to the
4:58strategy and then we're going to get
4:59more into the technical with the tools
5:01and the charts and everything. So, first
5:02let's understand where these trade
5:04opportunities are coming from. So, say
5:05we have a chart that's moving up in a
5:07normal trend pattern like this obviously
5:09moving up and moving down. Every time we
5:11have these sort of corrective pull downs
5:13in trends, we can actually find
5:14opportunities to enter, play the move
5:16up, and continue playing into these sort
5:19of pullbacks in trends and ride the
5:20trend all the way back up. You can see
5:22we have trade opportunity 1 2 3 4 5 6 7.
5:26Okay. Often times with this trade
5:28strategy, if the market conditions are
5:29right, we can have a lot of
5:31opportunities in a single day. Sometimes
5:32I've had almost 10 individual trades on
5:35one single trading session, which if
5:37we're following all our rules and our
5:38confluences, can add up really, really
5:39quickly. So really dialing in on this
5:41can allow for a lot of ground to be
5:43covered in a short amount of time as
5:45long as we're actually containing risk,
5:46approaching it responsibly and in a
5:48smart way, and making sure that we're
5:49finding ideal market conditions. And
5:51we're going to dive more into that in a
5:52second. So that's step one is
5:53understanding that each what's called
5:55impulse and corrective wave is going to
5:57open up opportunities for us to be able
5:58to enter into trends, play into the
6:00dips, and play into continuations. We
6:02can do that so long as all of the
6:03criteria is allowing us, and we can play
6:05into the ups and the downs of the
6:07market. So, let's get into the second
6:08part of the strategy, which is going to
6:10be the tools and indicators that we're
6:12going to need to actually deploy this on
6:13our charts. So, the first thing that I
6:15add to my chart is a simple moving
6:17average. So, I call this simple moving
6:18average alignment. So, what that's going
6:20to be is plotted average lines here,
6:22which is going to track the general
6:23movement of price on a chart. That's
6:25going to show us the general direction.
6:27And you'll notice we have a shorter term
6:29and a longer term ones, which will show
6:31us critical levels of price can often
6:33times pull down to and the strength of a
6:35general trend in the market. The next
6:36thing that we're going to be using is
6:37something called a custom fib. And this
6:39is a simple tool on Trading View. I'm
6:41going to show you how we can set it up
6:42on Trading View in a second. So, this is
6:44the top of our fib, our one level. And
6:46this down here is going to be our zero
6:48level. This is the golden ratio in
6:50Fibonacci
6:52382.17
6:54and then.05
6:55level, which is going to act as our
6:57entry. So, if price is trading up here,
6:59that's going to be considered our entry.
7:01This is going to be our dip by one. If
7:03price continues to move down, this will
7:04be our dip by two. and we have our stop
7:06loss up here and up here is going to be
7:08our original takeprofit. So depending on
7:10how these markets sort of chop around is
7:12going to determine which levels were
7:14either adding to taking profit and we're
7:15going to be able to adjust it and sort
7:17of be responsive to the market to be
7:18able to simply follow these trends. The
7:20way we're going to do that is by using a
7:22simple calculation and this is something
7:23that we've tested over thousands of
7:25pieces of data without getting into too
7:27much of the nuances. We're basically
7:29able to put in the amount we're trading
7:30with. Then I can put in my entry, my
7:32original takeprofit, my stop loss, which
7:34is all being told to me by this custom
7:36fib. And then I can add in my dip by
7:38levels like this. And it shows me how
7:40much I need to enter with at each dip by
7:42level, where I need to move my new
7:44takeprofits. And this is going to be how
7:45I'm actually executing on the chart. And
7:47like I said, once I'm doing this on the
7:49chart, it's going to start to make a
7:50little bit more sense. So let's go over
7:51to the charts now and look at some mock
7:53examples so that you can understand the
7:55actual setup and the execution for this
7:57style of trading. And while we're going
7:58through this trading strategy, I want
8:00you to really remember this table right
8:02here as it relates to our riskreward.
8:04And every time we're making one of
8:05these, this is called one unit of R. So
8:08that would be 3 R. This is 5 R. We can
8:11also have fractional R. So say we were
8:13to make.5R,
8:15risking 1 R. But say our winning
8:17percentage was 75%. Even though we're
8:20risking more than our potential winning
8:22because we're right more often, this
8:23combination here is truthfully all that
8:25matters. So keep that in your mind as
8:26we're going over this example. So I'm
8:28going to go through this step by step
Real Trade Examples
8:29and as we go through it, I'll show you
8:30how I'm setting things up and why so
8:32that it starts to make a little bit more
8:33sense. So to start off, I have something
8:35called the IT Foundation Indicator,
8:37which if you also want access to, go in
8:38the description, follow me on Instagram,
8:40DM me the word tools, and I'll have that
8:42sent over to you automatically. But what
8:43this allows me to do is a few things.
8:45First, it allows me to toggle on and off
8:47the New York session open time, which
8:50pre-market starts around 8 and then 9:30
8:52here is when the market opens, which
8:54tends to, as we can see, drive a lot of
8:56volatility and a lot of volume into the
8:58market, which is something that we have
8:59to take note of with this style of
9:00trading. The second biggest thing is
9:02something called the EMA alignment here.
9:04So, you'll notice as I toggle these on
9:06and off, these lines are going to appear
9:08and disappear on the chart. So, we have
9:09our longer term and then our shorter
9:11term, which are obviously more
9:12responsive to temporary moves in the
9:14market. and we'll often times have
9:15response levels off these lines as well.
9:17So it can guide us in the general
9:18direction and give us critical areas to
9:20consider. So these are two things that
9:22I'm adding to my chart. So the next
9:23thing that I'm going to do is sort of
9:24follow this checklist. So the first
9:26thing I'm doing is waiting for 9:30 to
9:28open. So once this happens, I'm going to
9:30wait and see what direction generally is
9:32the market playing into. And I'm sort of
9:33going to mark off the highest the price
9:35went starting at 8 and the lowest the
9:37price went during that session. And
9:38that's going to give me a range to see
9:40where price is starting to move through
9:42and consolidate which is then going to
9:43allow me to establish a direction. So
9:45you can see here price kind of broke
9:47underneath that level but quickly sucked
9:49back up for this strategy. I'm really
9:50looking for price action to sort of go
9:52in one direction and commit to it. This
9:54swept out this level and reversed over.
9:56So I'm not really interested in taking a
9:58trade like that. If we look at this same
10:00exact level here, we've had a bunch of
10:02candles closing underneath this level
10:04which confirms to me a proper downtrend.
10:06So, I can kind of use that to understand
10:07like generally that the trend has sort
10:09of smoothened out and picked enough of a
10:11direction for me to be able to play into
10:13swings in that direction. The third
10:14thing that I'm going to be looking for
10:15is waiting for moving average alignment.
10:17So, you can see we have green here. The
10:19top one is still red. Once this sort of
10:21rolls over and pulls here, we have our
10:2320 or 50 and our 200 day EMA all
10:25aligning to the same color. So, once we
10:27have a direction picked in moving
10:29averages aligned, I'm going to basically
10:30consider this a range. So this whole
10:32thing is a range that I'm going to be
10:34looking to potentially take a trade in
10:36that direction. This is where I'm
10:37starting to use the fib. So in trading
10:38view, you can go over into your
10:40trendbased fib extension like this. And
10:42these are the settings that I'm using if
10:43you want to take a screenshot and sort
10:44of match it and save it as a template
10:46here. Then I'm going to take from this
10:47swing low point up to the most recent
10:49high before the moving averages started
10:51changing in one direction. So you can
10:53see they're green here. All of a sudden
10:54they start to turn red here. So I'm
10:56taking from this swing point to this low
10:58swing point. So now I'm going to be
10:59evaluating confluences and doing extra
11:01analysis. So I'm going to get into that
11:03a little bit later after a few examples
11:04because I'm going to show you how I
11:06understand this overall concept. So what
11:08I'm looking to happen is basically for
11:09price to make a push, come into this
11:11entry level and then roll over into our
11:14takerit level here and continue that
11:16trend. Now if that doesn't happen, we
11:19now have dip by one, dip by two, and our
11:21stop loss outside of this general
11:23movement on the trend. So if price is to
11:25move into this level and or this level
11:27now we're basically going to be dip
11:29buying into our position and moving our
11:31average up. So that now all we need even
11:33if the market changes direction on us
11:35completely is for a slight pullback in
11:36price to be able to exit the position
11:38still maintaining a win even if we're
11:40wrong about the trend direction. What I
11:42do is like to maximize the movement when
11:43I am right about these. But if I'm wrong
11:45this is a way that we can get out while
11:46maintaining a high winning percentage.
11:48Now there is a catch to this. So when
11:50we're entering a position like we were
11:51talking about our risk profile before
11:53this is our original riskreward ratio
11:55which you can see is basically one
11:57right. So our stop loss is back here
11:58take profit is here. So we'll play this
12:00forward. Price doesn't continue moving
12:02actually comes up and hits on this dip
12:03by one level. Now our average is going
12:06to move somewhere up to here and our new
12:07take-profit is going to be somewhere
12:09around here. Same thing is true if it
12:11comes up to this level. then our average
12:13will move somewhere up here and our new
12:15take-profit will be somewhere around
12:16here which is now at the end of the
12:18trade is going to make it so that we're
12:19actually aiming to make about 2R per
12:22trade while risking one unit of R. So
12:24once again higher probability of winning
12:26but lower amounts of reward per trade
12:28and you still have that full one unit of
12:30risk if you lose the entire position.
12:32But what I've found in my trading is
12:33that if we're able to use all of the
12:35confluences and rules that I'm about to
12:37show you and with controlled risk and
12:38proper management, this can allow us a
12:40really cool strategy to be able to play
12:42into dips and trends and have a ton of
12:44trade opportunities on any given day.
12:46And actually, the way I was able to have
12:47one of the best trading sessions that
12:49I've ever had with this strategy was by
12:51adding another layer of confluence and
12:53sort of letting a trade run, which I'm
12:54also going to explain a little bit more
12:55on in a second. But you can see our dip
12:57by one level was filled and then price
12:59came back down to this level which
13:01allowed us to get out because of setting
13:03up our position with this calculator
13:05correctly which once again if you DM me
13:07on Instagram tools this will be sent
13:08over in a whole tool suite for you to
13:10also play around with. So you can see
13:11price definitely cleared that level and
13:13definitely clear this level which would
13:14result in a winning trade. So now I'm
13:16going to continue with the session and
13:17we're going to find several other
13:18opportunities. So once again we're
13:19waiting for 930 which is over. So really
13:21what we're looking for now is for a
13:23direction to fully be established again
13:24in the opposite direction and then we
13:26need to find a range and evaluate. So
13:28based off of trend analysis, this level
13:30is the level that needs to be broken. So
13:31price moves up, has a adverse reaction
13:34off of that level and continues to move
13:35down. So we still don't have an
13:37established direction. And you'll notice
13:38off of this level, we finally start to
13:40consolidate above that before making a
13:42pull back down. So once again, I could
13:44take my fib from this high level down to
13:46this swing low level. So once again we
13:48have directional confirmation. We find
13:50our trend which is here. Set up our
13:52fibs. And even though this breaks down
13:54now we have our entry filled which sets
13:56our position up like this. Price
13:58continues to move down against us. Fills
14:00our dip by one and our dip by two which
14:02puts our average somewhere around here.
14:04New profit somewhere in here. And then
14:06price oftent times responds off of these
14:08critical fib levels and support levels
14:10over here. Bounces up and we're able to
14:12once again using that mathematical
14:14strategy be able to pull off another
14:15win. So now we have a downtrend in this
14:17direction which gives me a new range.
14:19The trend level breaks off of here
14:21creates a new range. I can draw from
14:22this level here. Enter our position. We
14:24enter right here. We add dip by one, dip
14:27by two, comes back down, fills us once
14:29again for another full win. Now this can
14:32get even juicier as we add confluences
14:34to this which allows me to basically
14:36play the market to the upside once I
14:38have an even deeper order if I get an
14:40initial response which is how I was able
14:41to have that massive trade that I took
14:43last week. Even though with these trades
14:44you're typically making say 0.2 for
14:47every unit of risk, I was actually able
14:48to make 1.25R
14:50off of one single trade even though my
14:52win rate is like up over 90%. So let's
14:54find a few more. So now once again we're
14:56waiting for a direction to be
14:57established. Now we're looking at the
14:59lowest swing to the highest swing which
15:01would be here to here. And as you get
15:03good at trading, start to add
15:04confluences and you can start to do
15:05general analysis like what we do on the
15:07private side of our team. We're actually
15:09able to say like this is a really strong
15:11area of support. So if price is able to
15:13break through it and come down and
15:14retest it and then continue, there's a
15:16high probability of a win on this trade.
15:18So price comes down, fills our first
15:20entry level. So we're in, comes off of
15:22that level, fills our second one. You
15:23can see this is where price dipped down
15:25to before having a rebound and once
15:26again getting us out for a nice solid
15:29consistent win. Now we're once again
15:30waiting for a new level to break. You
15:32can rinse and repeat this cycle. But you
15:34can see over the course of say a 10-hour
15:36session, I've been able to find 1 2 3 4
15:39trades. Sometimes there's going to be
Live Trade Examples
15:40five, six, seven, even more potentially.
15:43So, let's take a look at me actually
15:44executing some of these trades in real
15:46time. And then I'm going to show you
15:47some of the added confluences and extra
15:49analysis that tend to push up my
15:51conviction, allow me to allow trades to
15:53run and get my win rate up higher. All
15:54right, so you can see I've done my
15:56analysis. I've waited for my moving
15:58averages to align. I've entered and set
16:00up my position. Okay, so I have my entry
16:01level here. Then you can see price
16:03starts to move down against me and break
16:05underneath this trend level. And that's
16:06where my dip by two level hits. And so
16:09price starts moving against me and fills
16:10me on that sort of dip by. And so here
16:12I'm assuming that the price is going to
16:14react on the underside of this trend,
16:15which is something I call an underside
16:17overside retest. But price continues to
16:19move really really strongly up, which
16:21puts me, you can see, up $2,600 now,
16:24just off of that one flip, even though
16:25my original entry was right here. Okay,
16:27so I'm going to dive a little bit more
16:28into some of the other confluences, but
16:30I'll just sort of show you some of the
16:31stuff that I do look for as this trade
16:33sort of playing out. So, this trend
16:34level I was assuming would catch some
16:36level of support. Since it broke through
16:38it, I actually expect a bearish
16:40sentiment to basically respond off of
16:42this level and then continue moving
16:43down. If that was the case, I would hope
16:45for a dip by off of this support level
16:47and then a correction up and I'd get out
16:49of the trade as normal. But once I was
16:51well into profit at this level and I
16:53started to see that the price was moving
16:54through that level, that shows an
16:56extreme amount of strength. And so, I
16:57deployed something called an L1 bomb.
16:59Okay? And so, that L1 bomb allows me to
17:01have now a dip by one fill. But now I'm
17:03going to be taking profit at the
17:05original take-profit level. So I'm
17:06actually going to play for a full move
17:08with a slightly deeper retracement.
17:09Okay? That way if the price continued to
17:11move down, I'm still getting out as
17:12normal. But if it plays in my direction,
17:14I can sort of gauge it and allow it to
17:15run. And you can see now I'm up 5500.
17:18And I'm really playing this into my
17:19advantage. Okay. And you can see it sort
17:21of pushes from there, reclaims that
17:22trend. We're up 8,200. All right. We
17:24started to get some consolidation. And
17:26this is where we started pushing over
17:27this high range. And that's where
17:29Unrealized was up over $10,000, which is
17:32more than my entire risk on the entire
17:34trade. Even though I was assuming to get
17:3602, now I'm up over a whole risk factor.
17:38So, it's actually 5x more than I was
17:40expecting to make on profit. Okay? So, I
17:42wanted this high level to break. I moved
17:43my stop loss up and then we started to
17:45consolidate up in this range. Then I
17:46ended up taking the trade off for a
17:48little under 10,000 in full profit. So,
17:50I kind of teased some of the confluences
17:51there, but there's a lot more to it that
17:52I'll get into in just a second. Let's
17:54take a look at this second trade. Okay,
17:55so once again, we have the New York open
17:57happening. we have a full consolidation
17:59under the range and all of our moving
18:00averages starting to align. This is
18:02where I take my initial entry. Okay? And
18:04you can see another confluence that I'm
18:06using is something called that underside
18:07overside retest. So, I'm doing analysis
18:09on this trend trying to figure out where
18:11we could have a possible test of the
18:13trend that was being supported before
18:15price breaks underneath it and then
18:17tests off of critical levels like right
18:20here. So you can see I knew my dip by
18:22two was going to happen right into that
18:24critical level which added to my
18:25conviction in the statistical
18:27probability of this trade working out.
18:28So you can see dip by two fills responds
18:30beautifully off of that level. Okay. So
18:32you can see now I'm getting a response
18:34off of that area. I'm already up 1,900.
18:37Right? There's going to be slippage in
18:38fees in there. Right? So it's not
18:39actually 1,900 realistically. It's a
18:41little bit less. Price pushes back down.
18:43We're up 23 24 and the trade gets taken
18:46off the table. So even though once again
18:48I was playing this level, we got a push
18:50up break through this level. I was
18:52aiming for my response here. I actually
18:54meant to hold this trade longer because
18:55we did get such a good response off this
18:57level in strength. I was going to sort
18:58of play into the strength a bit, right?
Extra Confluences
19:00That's just personally what I do. Ended
19:01up screwing something with the orders.
19:03So I took the trade off the table for
19:04about $2500. And like I was showing you,
19:07you can basically go do the repetitions
19:09and follow trends this way and find a
19:11ton of trade opportunities. Okay, I
19:12can't share everything here because I
19:14have to be fair to the private side of
19:15the team who has the education, but I do
19:17want to provide value to you guys and
19:18show you that you can even further
19:20refine this down. So, we did talk about
19:22support and resistance, oversight,
19:24underside. This is something that I'm
19:25applying to all of my trading basically.
19:27Okay, I did go a little bit over the L1
19:28bomb. I want to talk about some of the
19:30other confluences that I like to see,
19:32which are RSI avoidance and something
19:34called Elliot wave avoidance. Okay, this
19:35is getting a little bit more
19:36complicated, but it's something that
19:37personally improves my trading. Okay, so
19:39there's something called Elliot wave
19:40theory which basically assumes that
19:42trends move in five wave patterns. All
19:44right, so you have 1 2 3 4 5 followed by
19:48something called a ABC wave which is our
19:51corrective pattern A B C. So there's
19:54overall rules and a ton of ways to read
19:55this that I'm not going to get into in
19:56this video, but effectively one thing
19:58that I'm doing with this strategy is
20:00making sure that I avoid trading into a
20:02wave that has a fivewave, right? because
20:04this is going to indicate we could have
20:06a pullback and then a corrective pattern
20:08which is not in the direction of our
20:09trend. So I'm always avoiding five waves
20:11and I'm taking this type of analysis
20:13into consideration to be able to get in
20:15on low volatility areas that have a high
20:17probability of continuing in my
20:19direction. Okay, so as an example, the
20:21first trade that we took, I was kind of
20:22biting my tongue showing the examples
20:24because I actually wouldn't have
20:25probably taken this trade because if we
20:27look, we have our 1 2 3 4 down to five,
20:31which indicates to me we could have A B
20:34C and have a counter move in that
20:36direction. And you can see that's
20:37exactly what happened where price ended
20:39up flipping. still got us in and out
20:41luckily of the trade but ended up
20:43reversing completely in the direction
20:45where something like this trade breaks
20:46out of that previous trend as a 1 2 3
20:50this would be four and then a five
20:51assumption down and you'll notice even
20:53though this did eventually change
20:55direction moved well within our range to
20:58get us out multiple times without having
20:59to be super precisely accurate. Okay, so
21:02when I'm trading the strategy, I'll go
21:03into my trading view, click on this bar
21:05replay, and just go back through tons of
21:07historical data, do all of my analysis,
21:09learn what works for myself, build up
21:11these confluence rules. That way, I have
21:13my systematic approach in terms of R,
21:15and now all I need to do is follow the
21:17process and follow my training. Okay?
21:19And that's basically all we're working
21:20on with our community is being able to
21:22work in terms of R and focus on the
21:24proper process. Okay? And once again,
21:25month is off to a crazy start with this
21:28strategy. also another strategy. I'm
21:29going to be going over other trades on
21:31the channel. So, make sure if you're
21:32still here, you hit the like button, you
21:33subscribe to the channel if you want to
21:34know when we put videos out in the
21:36future. If you need the resources, go in
21:38the description, follow me on Instagram,
21:39DM me the word tools. I'll have
21:41everything sent over to you. Okay? Check
21:42out the resources on the screen here.
21:44And until next time, I will see you all
21:46in the next video.