2 Monster Trades. 1 Boring Strategy. — Transcript

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1. 0:00Last week, I caught these two monster
2. 0:03trades, and it came down to using only
3. 0:05one simple box, but not the way most
4. 0:09people use it. But, here's the thing
5. 0:11that makes me really sad. The majority
6. 0:14of the traders out there completely
7. 0:16ignored this move. Instead, they were
8. 0:19stuck on the 1-minute chart, chasing
9. 0:21candles,
10. 0:22>> [music]
11. 0:22>> and fixating on every little small move
12. 0:25just to end up donating money to the
13. 0:28market. And I get it because I used to
14. 0:30trade the exact same way. I thought more
15. 0:33screen time, more analysis, more trades
16. 0:36meant more profits. But, in reality, I
17. 0:39wasn't trading a strategy. I was just
18. 0:42reacting to noise. And everything
19. 0:44changed when I stopped focusing on every
20. 0:46candle and started focusing on areas
21. 0:50where price is most likely to react. Let
22. 0:52me show you what I mean. This box right
23. 0:54here is the only thing I look at. And I
24. 0:57call it the box strategy. And it's based
25. 1:00on one stupid, idea. The price usually
26. 1:03reacts between the previous swing high
27. 1:06and the previous swing low. That's it.
28. 1:09No magic, no complicated indicators.
29. 1:12Just understanding where buyers and
30. 1:14sellers are most likely sitting. It's
31. 1:16super easy, but unfortunately, a lot of
32. 1:18people are still doing it wrong. So,
33. 1:21here's how I find these levels. Let's
34. 1:23set this up. First, you want to switch
35. 1:25to the 1-hour chart. This is my higher
36. 1:28time frame bias, and this is where I
37. 1:31draw my liquidity zones. Next, take a
38. 1:33look to the left and see where is the
39. 1:35previous swing high and swing low on
40. 1:38that chart. As we can see here, this was
41. 1:41the high, and this right here was the
42. 1:44low. So, now I'm going to box in that
43. 1:47area, just like that. And this box is my
44. 1:50map for the day. And here are the simple
45. 1:53rules. If the price reaches the the part
46. 1:55of the box, I'm only looking to buy. In
47. 1:59this case, my target is the upper part
48. 2:01of the box. If the price reaches the
49. 2:04upper part of the box, I'm only looking
50. 2:06to sell and I'm targeting the lower part
51. 2:09of the box. If the price is in the
52. 2:11middle, I do nothing. This is where most
53. 2:14traders get chopped up. I'm only
54. 2:16interested in the edges of this box.
55. 2:19Now, before you roll your eyes and you
56. 2:21think, but what happens if we break out
57. 2:23of the box? Because this will happen
58. 2:25quite a lot. Don't worry, I will go
59. 2:27through the exact situation and show you
60. 2:30what to do in a case like that just in a
61. 2:32moment. Now, once I have my levels
62. 2:35marked on the 1-hour chart, I drop down
63. 2:37to the 15-minute chart. This is where I
64. 2:40look for my confirmation and this is the
65. 2:42step that most traders completely skip.
66. 2:45They enter too early or too late and
67. 2:47then blame the strategy. So, let me show
68. 2:49you the exact setup. Now, price comes
69. 2:52down into the lower part of the box.
70. 2:54What would you do here? Buy or sell? If
71. 2:57you said buy, you already got this.
72. 2:59You're on the right track. But, I'm
73. 3:00going to be honest with you. This drop
74. 3:02right here looks aggressive and scary.
75. 3:05And the truth is, most traders would see
76. 3:07that and they would start panicking.
77. 3:09They would think the market is dropping
78. 3:11lower, it's breaking down and they would
79. 3:13even start opening short positions
80. 3:16straight into that support where big
81. 3:18buyers are sitting with their buy
82. 3:20orders. And this is the trap. So, what I
83. 3:23want to see first is buyers stepping in
84. 3:26and my favorite pitchfork candlestick
85. 3:28formation. Watch this carefully. A few
86. 3:30aggressive emotional red candles
87. 3:33straight into the lower part of the box.
88. 3:36We even broke straight through the box
89. 3:38just enough to grab people's stops. And
90. 3:41then suddenly, one green candle. That
91. 3:44green candle tells me selling pressure
92. 3:46might be over and buyers are stepping in
93. 3:49ready to reverse the price. So, my entry
94. 3:51happens as soon as the next candle
95. 3:53starts taking the high of this green
96. 3:56candle and the stop loss is slightly
97. 3:58below. Now that we've got the
98. 4:00confirmation, I'm in that trade and
99. 4:02moving the stop loss slightly
100. 4:04underneath. Now once the price start
101. 4:06moving significantly in my favor, I
102. 4:09start moving my stop loss above my entry
103. 4:12and slowly trailing it step by step and
104. 4:15locking in profits. As we can see, the
105. 4:18market broke straight through our box
106. 4:20and it continues further higher and
107. 4:23because it already made such a nice
108. 4:24move, I'm just going to go ahead and
109. 4:27book these profits and call it a day.
110. 4:29Now let's go ahead and see what happens
111. 4:30if we break out of the box. What to do
112. 4:33in that situation? So, let's take a look
113. 4:35at this chart. This right here is the ES
114. 4:38futures and the one-hour chart. And
115. 4:41remember, we want to box in the previous
116. 4:43swing high and swing low on that time
117. 4:47frame. So, as you can see, this right
118. 4:49here was a previous high and this seems
119. 4:51to become a previous low, which is by
120. 4:53the way also a breakout area. So now
121. 4:57we're going to box in these two zones.
122. 5:00And as you can see, the price shoots
123. 5:02immediately straight through our upper
124. 5:04zone of the box. And that happens quite
125. 5:07a lot, especially in a bullish market.
126. 5:10So, what do we do next? We don't want to
127. 5:12start forcing trades or looking for
128. 5:14shorts. We want to wait for the price to
129. 5:16calm down and to build a new structure.
130. 5:19In a few hours later, the price is back
131. 5:21down into our breakout area. So, this
132. 5:24breakout area becomes our new structure.
133. 5:27We want to go with the trend and look
134. 5:29for long setups at that zone. Now I'm
135. 5:33going to switch down to the 15-minute
136. 5:34chart. And on the 15-minute chart, we
137. 5:36have our pitchfork candlestick
138. 5:38confirmation. We have four red candles
139. 5:41right into our new structure, which we
140. 5:44want to use for longs because we want to
141. 5:46go with the trend. So, what I'm waiting
142. 5:48for now is the next candlestick to go
143. 5:50above the high of this candle. This is
144. 5:53going to be my entry, and my stop loss
145. 5:55is going to be placed just below. Now
146. 5:57that I got my confirmation, I'm in this
147. 5:59trade, and my stop loss is slightly
148. 6:02underneath. Now, my first target is the
149. 6:05previous high right here. Because I
150. 6:07don't know if the price is going to
151. 6:09reverse or continue higher, what I like
152. 6:12doing in cases like that is just moving
153. 6:14my stop loss above my entry and booking
154. 6:17partial profits. In this case, I'm going
155. 6:20to close half of my position and let the
156. 6:22remainder of the position go. As we can
157. 6:24see, I booked partial profits already,
158. 6:27and the market continues further higher.
159. 6:29Therefore, I'm going to move the stop
160. 6:31loss tighter, because I don't want to
161. 6:33give back any more of my profits. And as
162. 6:35you can see, the remainder of my
163. 6:37position was hit, and I'm out of this
164. 6:39trade for a nice profit. And that is the
165. 6:42exact way I use the box strategy in
166. 6:45trending and bull markets, especially
167. 6:48when trading the ES or NQ futures, which
168. 6:51are designed to go up and go up 75 to
169. 6:5480% of the time. I rather prefer to
170. 6:57stick with the trend. Now, if you want
171. 6:59to know the exact liquidity areas, each
172. 7:02week I send our gains guide in video
173. 7:04format. Feel free to check that out.
174. 7:06It's right in the description below.
175. 7:08Thank you so much for watching, and I
176. 7:10cannot wait to see you back here on our
177. 7:12channel again.