1H to M5 Trading Strategy — How I Find My Best Zones — Transcript

Full transcript

1. 0:00All right, guys. So, today I'm breaking
2. 0:01down exactly how I use my highest time
3. 0:03frame to find me the best zones to use
4. 0:06on my lower time frame. For example, I
5. 0:07like to day trade mainly on the 5-minute
6. 0:09time frame, and by using the hourly time
7. 0:11frame to find my zones, my 5-minute win
8. 0:15rate can go so much higher. By drawing a
9. 0:17zone on a higher time frame, you are
10. 0:19chopping out a lot of the noise, and you
11. 0:22are solely focusing on the high
12. 0:23probability areas to get in. We're going
13. 0:25to go through a real ex- We're going to
14. 0:27go through real examples step by step on
15. 0:29the chart. So, let's get into it. So,
16. 0:30why am I using the 1-hour and not
17. 0:32something like the daily monthly? Yes,
18. 0:33you can always say I can use this one or
19. 0:34this one or this one, but you need to be
20. 0:36relative to the time frame you like to
21. 0:37trade on. So, because I like to use the
22. 0:395-minute for pretty much my bias, my
23. 0:41zones, my entries, etc., I want to be
24. 0:43relative to that. Using the monthly
25. 0:45paired with the 5-minute, you're going
26. 0:46to get cooked. Using the hourly, that's
27. 0:47perfect. And again, I want to be able to
28. 0:49catch at least, you know,
29. 0:51five to six trades a week
30. 0:53uh when I'm only on for about 2-3 hours
31. 0:54a day as well. If I use something like
32. 0:56the monthly, the yearly, I'm never going
33. 0:58to catch a trade. If I use something
34. 0:59like the 1-minute, it's going to be too
35. 1:00much noise. So, for me, the perfect
36. 1:02sweet spot for my day trading is the
37. 1:041-hour and the 5-minute, but anything
38. 1:06matches the same. So, I'm not just
39. 1:08randomly picking
40. 1:10areas, okay? Thinking, "I'm going to buy
41. 1:12here. I'm going to sell here." No. Of
42. 1:13course, as always, you need to find the
43. 1:15trend. So, I can see that on this higher
44. 1:17time frame, the hourly, we are clearly
45. 1:19pushing higher. So, I need to look for
46. 1:21buyers, obviously. I don't care about
47. 1:22supply. I'm only looking for areas of
48. 1:24demand. Now, with the hourly, I can be a
49. 1:26bit more fussy with uh a bit less fussy
50. 1:28with my break structure. If you know how
51. 1:30I read market structure on the lower
52. 1:31time frame, we need to break big areas
53. 1:33for it to be a break structure. This
54. 1:35is a break structure.
55. 1:37This is a break structure. This
56. 1:40is not a break structure, too small.
57. 1:42This
58. 1:43too small. So, we only focus on the
59. 1:45bigger areas. However, with the hourly,
60. 1:46I can be a bit more lenient because,
61. 1:49like I said, it's the hourly time frame.
62. 1:50So, a small break structure on the
63. 1:51hourly is going to look like a big break
64. 1:53structure on the 5-minute. So, I can see
65. 1:55that we are bullish, and then I need to
66. 1:57find a break structure. That's when we
67. 1:58take a high. So, here we have
68. 2:00taken a high. That's the first step. I
69. 2:02want to find the aggressive move that
70. 2:05took this high because there needs to be
71. 2:06some sort of demand that pushed price
72. 2:09up, pushed price lower, and then pushed
73. 2:11price up again. You see, if price just
74. 2:14continued higher
75. 2:16like that, we don't have really a demand
76. 2:19cuz we want to see where sellers stepped
77. 2:20in, they tried, and then they failed.
78. 2:23So, that demand beat those sellers.
79. 2:25That's how we find a good zone. So, I do
80. 2:27need to see that slight pullback, and
81. 2:30not just a straight leg up. So, here I
82. 2:33can see we broke structure and we had
83. 2:35that slight high low pullback before
84. 2:39doing so. So, that's good because it
85. 2:41gives me a bearish candle. I need a
86. 2:42bearish candle to work with. So, I need
87. 2:43to see what area of demand caused this
88. 2:46higher timeframe break. And what I want
89. 2:49to see is two steps. I want to see
90. 2:51a swing low.
91. 2:53Okay, and a close above the lowest
92. 2:58bearish candle. So, where did we have a
93. 3:01swing low before we broke this?
94. 3:04Here. Now, do we have any other bearish
95. 3:06candles? No. So, this is the lowest
96. 3:09bearish candle. Have we closed above it?
97. 3:11Yes. That's how we validate our zones.
98. 3:13It needs to be a swing low or swing
99. 3:15high, and then a close above the lowest
100. 3:17bearish or a close above or close below
101. 3:19the lowest bullish for a supply, but
102. 3:20we'll get into that. So, here this is a
103. 3:22swing low, and we closed above the
104. 3:24lowest bearish candle. So, I highlight
105. 3:26the area, right? The high of the candle
106. 3:29we closed above
107. 3:30to the swing low. That becomes my
108. 3:32demand. Now, if the second part sounds a
109. 3:34bit tricky, let me show you exactly what
110. 3:36I mean. Here
111. 3:38we have a swing low.
112. 3:40Okay.
113. 3:41But, this is not the lowest swing low.
114. 3:43Why? Because this swing low Oh, sorry,
115. 3:46this is not the lowest bearish candle.
116. 3:47Why? Because this bearish candle did not
117. 3:49close below
118. 3:51this bearish candle. So, in fact this
119. 3:53here is my lowest bearish candle and I
120. 3:56draw it from the high of the bearish
121. 3:59candle
122. 4:01to the swing low. And what did the price
123. 4:03do once we closed above it? That becomes
124. 4:05my area of demand. Price did what? Trade
125. 4:08back into it and push us higher. Let's
126. 4:10see what we do.
127. 4:11Boom, 50% to the T and what? Push
128. 4:14higher. Push higher on a lower time
129. 4:15frame.
130. 4:16There's the area we drew. We came
131. 4:18exactly back into it. Push higher. So
132. 4:21these zones are really strong. But
133. 4:22that's what I mean when it has to be the
134. 4:23lowest bearish candle. Can't be
135. 4:24contained within another bearish
136. 4:26candle's wick next to it.
137. 4:28So there we go. We have taken this high
138. 4:31on the hourly. Clear uptrend. We have
139. 4:33left a swing low.
140. 4:35Bearish candle and we have closed above
141. 4:37it. So I can highlight this area here.
142. 4:40Now this is not it. I don't just
143. 4:41randomly take a buy. Don't be stupid.
144. 4:43Drop down to your 5-minute time frame
145. 4:45and look for your six-step setup. What
146. 4:48do we have? If I don't have liquidity I
147. 4:49don't have a can't use it. I can't use
148. 4:51every random zone. It needs to follow my
149. 4:53six-step model. 1 2 3 4 5. Boom. This
150. 4:58follows my six-step model. So guess
151. 5:00what? I can use this zone here.
152. 5:12So once price comes and sweeps this
153. 5:14liquidity only after sweeps it. If
154. 5:16there's no liquidity in this zone I
155. 5:17cannot use it and I have to wait for a
156. 5:19new zone to form. But boom. Now we've
157. 5:21swept liquidity. Obviously I need some
158. 5:23sort of confirmation that we do indeed
159. 5:25want to bounce. I have no confirmation
160. 5:27so far.
161. 5:30Let's see. Okay, nice. We have now
162. 5:33got a good recovery inverse this gap.
163. 5:37Inverse this gap.
164. 5:40That tells me that this is now a good
165. 5:42long
166. 5:43to look for my buy in.
167. 5:46Stop loss below targeting
168. 5:48higher prices.
169. 5:50Boom.
170. 5:51TP smashed. So, I started on the hourly.
171. 5:54I found me my zone. I made sure I had
172. 5:56liquidity, etc. Came into it. Gave me
173. 5:59confirmation, and pushed higher. So,
174. 6:01it's the exact same thing, but you're
175. 6:02just using a higher time frame to show
176. 6:04you what the best zones are. Wait, same
177. 6:06thing on this chart. So, again, when you
178. 6:07go on a higher time frame, we do want to
179. 6:09gauge some sort of bias. Now, is this
180. 6:10buy or bearish? Is this bullish? We kind
181. 6:12of can see what we are respecting and
182. 6:13disrespecting. Well, we have bearish
183. 6:15fair value gap here. We have tapped into
184. 6:17that and respected it. So, it's not hard
185. 6:20to see that this higher time frame is
186. 6:22really, as long as this higher holds,
187. 6:24respecting bearish arrays. And my target
188. 6:26would kind of be these lows down here.
189. 6:28So,
190. 6:29I'd be bearish. Now, if I'm bearish,
191. 6:30where can I find a good zone? Well, this
192. 6:32is when I need, okay, a
193. 6:35swing high.
194. 6:38And a close below the lowest, sorry, the
195. 6:41highest
196. 6:44Oops. Can't spell.
197. 6:48bullish
198. 6:49candle. So, where do we have a swing
199. 6:51high? We have a swing high here.
200. 6:55But, is this a bullish candle? No. So, I
201. 6:57always go to the left. Where's my
202. 6:58bullish candle? We have this bullish
203. 6:59candle here.
204. 7:00Did this bullish candle close above
205. 7:02these gap these bullish candles? Yes.
206. 7:04Can you see it's not contained
207. 7:07within another bullish candle's wick.
208. 7:09So, this is my highest bullish candle. I
209. 7:11don't need to look at a candle prior.
210. 7:13For example,
211. 7:15if I didn't have this,
212. 7:17right now, if we look at these bullish
213. 7:18candles, this is contained within this,
214. 7:20which isn't contained with this. We
215. 7:21haven't had a bullish candle close above
216. 7:23this bullish candle. So, this would be
217. 7:25my highest bullish candle. What I'm
218. 7:27looking for a close below would actually
219. 7:28have to close below this bullish candle,
220. 7:30not these two.
221. 7:32Okay, so when I play it back to where we
222. 7:33were,
223. 7:35okay, we established that this is my
224. 7:37highest bullish candle. So, we have to
225. 7:38close below the lowest point of here,
226. 7:41which is a not wick close. Boom, we
227. 7:43close below that. So, guess what? I can
228. 7:45now highlight the low
229. 7:47to the high
230. 7:49as my area of supply. Now, let's drop
231. 7:51down to the 5-minute and let's look for
232. 7:52where we have a six-tap. Well, this is
233. 7:54our zone. Do we have any liquidity? Yes.
234. 7:58Here.
235. 8:00So, I can mark this as my one, two,
236. 8:02three tap lower low. Here again, no
237. 8:05liquidity, we could not use this.
238. 8:07Let's wait for a sweep. It doesn't sweep
239. 8:10something, all right? It doesn't always
240. 8:11come back, but if it does, perfect. Now,
241. 8:13we have swept this.
242. 8:15Again, I can look for some sort of
243. 8:16confirmation.
244. 8:23Let's see. I'm watching that this fair
245. 8:24value gap failing to put in a new high.
246. 8:31And if we can stop this fair value gap
247. 8:33from making a new high and breaking it,
248. 8:35nice. I like that rejection there as
249. 8:36well. I'm happy to enter these shorts.
250. 8:39Stop loss above.
251. 8:41Target lower prices. Again, we can
252. 8:42really target this low, that hourly low
253. 8:44that we were saying.
254. 8:45But I'll take most of my profit at this
255. 8:47low here.
256. 8:48And boom, what do we do?
257. 8:50We dump. If we go back to the hourly,
258. 8:53you can see we had that bearish bias.
259. 8:54We're expecting this low to get taken.
260. 8:57As we said, came back into here. Boom,
261. 9:00and now we have, for example,
262. 9:02another swing high here.
263. 9:04All right? This is also the highest
264. 9:06bullish.
265. 9:08I can mark this as my new
266. 9:10area and do what? Wait for a price to
267. 9:13trade into that. Again, I need to see if
268. 9:14I have a 5-minute six-tap.
269. 9:16Okay, this is interesting. This here,
270. 9:19I don't have a six-tap.
271. 9:21Look, this is the area.
272. 9:25But there's no liquidity in this leg at
273. 9:26all. Unless we form a mini break
274. 9:29structure below that. Now, I cannot use
275. 9:30this because no liquidity, I just can't
276. 9:33use the area. It needs to still fit that
277. 9:35same criteria. Let's keep it simple.
278. 9:37Let's doesn't overcomplicate it, and it
279. 9:39keeps it so, so effective. It's actually
280. 9:41what I've been going through a lot with
281. 9:43my one-on-one mentorship students,
282. 9:44showing them exactly how going through
283. 9:46loads of price action. One member
284. 9:47actually back tested it and got 10 wins
285. 9:49out of 10 using these exact concepts
286. 9:51shown. If you do want to join the
287. 9:52one-on-one where it's guaranteed
288. 9:53profitability, or you want to join the
289. 9:55premium Discord where you can watch me
290. 9:56live stream every day, etc., both the
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292. 9:59you did like this video, appreciate any
293. 10:01likes, comments, subscribes as always.
294. 10:02Any questions, drop them in the comment
295. 10:04section below. And apart from that, I'll
296. 10:06catch you in the next one.