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3 Technical Steps to Become a Consistently Profitable Trader — Transcript

by ChartTactix · 1,998 words · 356 segments · language en · Watch on YouTube

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0:00So in today's video, I'm going to show
0:02you the three key things you need to
0:04master if you truly want to become
0:07consistently profitable in trading.
0:11And those three things are
0:13bias,
0:14order flow,
0:16and entries.
0:17And honestly, these are three of the
0:19most important technical concepts you
0:21need to understand if you truly want to
0:23become profitable.
0:25So now, let's break them down one by
0:27one.
0:29Now, let's start with bias.
0:31Bias is simply understanding what the
0:33market most likely wants to do next.
0:36Is the market more likely to push to the
0:37upside?
0:39Or is the market more likely to push to
0:41the downside for that specific day?
0:44And this is extremely important because
0:46once your directional bias is correct,
0:49any trade you take in alignment with
0:51that direction automatically has a
0:53higher probability of playing out.
0:55Because at the end of the day, you don't
0:57necessarily need the perfect entry
0:59first.
1:00If your bias is correct, price will
1:03naturally keep delivering in that
1:05direction most of the time.
1:07Now, the question becomes, how do we
1:09actually get our bias?
1:12Now, there are two main concepts I
1:14personally use to build my bias. And
1:16I've talked about these concepts
1:17multiple times on this YouTube channel
1:19before. But I'll still give a brief
1:22explanation again in this video.
1:24The first concept is candle analysis.
1:27And the second concept is internal to
1:29external range liquidity.
1:32Now, let's start with candle analysis.
1:35Candle analysis is simply understanding
1:37how price closes relative to the
1:39previous candle's high or low.
1:42Because the way a candle closes gives
1:44you information about what the next
1:46candle will most likely do.
1:48For example, if price closes above the
1:51previous candle's high,
1:53the next trading day has a high
1:55probability of being bullish.
1:57But if price pushes above the previous
1:59candle's high and then closes back below
2:02it, leaving only a wick,
2:04that tells us something completely
2:05different. That tells us price is most
2:08likely going to move bearish.
2:10Now, on the other hand, if price closes
2:13below the previous candle's low,
2:15the next trading day has a high
2:17probability of continuing bearish.
2:20But if price pushes below the previous
2:22candle's low and then closes back above
2:24it, that usually tells us the next day
2:27has a high probability of being bullish.
2:29So, this is the first key thing you need
2:31to understand when it comes to building
2:33bias.
2:35Now, the second concept is internal to
2:37external range liquidity.
2:40And this concept is very simple.
2:42Whenever price comes into an internal
2:44range liquidity,
2:46the expectation is that price would
2:48eventually seek out external range
2:50liquidity.
2:51Or when price reaches external range
2:53liquidity, the expectation is that price
2:56would retrace back into an internal
2:58range liquidity.
3:00So, if you go to the higher time frame
3:01and notice that price is currently
3:03sitting inside a bearish internal range
3:06liquidity,
3:07the expectation should now be that price
3:10wants to move toward bearish external
3:12range liquidity.
3:13And once you understand that, every
3:16trade you take on the lower time frame
3:18should now be in alignment with that
3:19direction.
3:21Now, let's move to the second key thing,
3:23which is order flow.
3:25Now, order flow and market structure are
3:27very similar concepts.
3:29The main difference is understanding
3:30where each individual swing point forms.
3:34For example, a bullish order flow is
3:36simply a bullish market structure.
3:39But what confirms that the order flow is
3:41bullish
3:42is how price respects bullish fair value
3:44gaps during the move to the upside.
3:47If price keeps respecting bullish fair
3:49value gaps, that clearly tells us that
3:52price is in a bullish order flow.
3:55And one thing you should understand is
3:56this.
3:57In a bullish market, price creates
3:59higher highs and higher lows.
4:02Now, the best areas to look for entries
4:04are not at the higher highs.
4:06The best areas are at the higher lows.
4:09Because those higher lows are the
4:11cheapest prices price can give you
4:13during a bullish expansion.
4:15Now, where do those higher lows usually
4:17form?
4:18Most of the time, they form inside fair
4:21value gaps.
4:23So, whenever price creates a higher high
4:25and leaves behind bullish fair value
4:27gaps, the probability of price returning
4:30into one of those fair value gaps to
4:32create the next higher low becomes very
4:35high.
4:36And this is exactly why fair value gaps
4:38are so important in bullish order flow.
4:41Now, the next question becomes,
4:44how do you align your bias with your
4:46order flow?
4:48Now, let's say on the higher time frame,
4:50you have a bullish internal range
4:53liquidity.
4:54And inside that level, you also get a
4:57candle sweep.
4:58Meaning price swept the previous
5:00candle's low and then closed back above
5:02it.
5:03That immediately tells us that price
5:05most likely wants to continue bullish
5:08toward external range liquidity.
5:10But that does not mean you should
5:12immediately start buying randomly.
5:14Because having a bullish bias alone does
5:17not mean price will instantly move in
5:19your direction.
5:20You still need confirmation.
5:23And that confirmation comes from order
5:24flow.
5:25So, after getting your bullish higher
5:27time frame bias,
5:29you then go down to your intermediate
5:31time frame.
5:32And now you want to start seeing price
5:34gradually pushing upward.
5:36Once you start seeing that bullish order
5:38flow align with your bullish bias,
5:41that is when you can now begin looking
5:43for entries from the bullish fair value
5:45gaps price leaves behind on the
5:48intermediate time frame.
5:50Because those fair value gaps are the
5:52areas where price will most likely form
5:55the next higher low from.
5:57And now, that naturally brings us to the
6:00final step. Entries.
6:03And honestly, this is another very
6:04important part. Because after you
6:07understand your bias, and then your
6:09order flow aligns with that bias, you
6:12still need a proper way to actually
6:14enter the market. Especially because
6:17most of us are day traders.
6:19Now, in this video, I'm only going to
6:21teach you one specific type of entry
6:23model. Because I already have multiple
6:26videos on this YouTube channel where I
6:28explain different entry confirmations in
6:31detail.
6:32So, if you want to learn more entry
6:34models after this video, you can click
6:36on the video at the top right-hand
6:38corner after you're done watching this
6:40one.
6:41Now, the entry model we are going to
6:43focus on in this video is the
6:45combination of a liquidity sweep and an
6:48engulfing candle.
6:50Very simple, but very powerful. So, now
6:53let's talk about how this setup forms.
6:56The first thing you want is this. You
6:58want price to retrace back into your
7:01intermediate time frame fair value gap,
7:04which is the same time frame you used in
7:06identifying your order flow.
7:08Now, once price gets into that fair
7:10value gap, you then want to see a sweep
7:13of liquidity.
7:14And preferably, that liquidity sweep
7:17should happen with just a wick.
7:19Meaning price should quickly sweep a
7:21level, leave a wick behind, and reject
7:24immediately.
7:26Now, after that liquidity sweep happens,
7:28the next thing you want to see is an
7:30engulfing candle in direction to your
7:33bias.
7:34So, if you are bullish, you want to see
7:36a bullish engulfing candle.
7:39And if you are bearish, you want to see
7:41a bearish engulfing candle.
7:43And once that engulfing candle forms,
7:46your setup is complete. At that point,
7:49you can manually execute the trade,
7:52place your stop loss below the swing
7:53low,
7:54and then target a simple one to two risk
7:57to reward ratio.
7:59Very simple, very clean, and very
8:02effective.
8:03So now, when you look at everything we
8:06have talked about in this video,
8:08this is really the entire three-step
8:10process.
8:11Step one,
8:13get your bias. Step two, wait for your
8:16order flow to align with that bias. And
8:18then step three, once price comes back
8:21into your intermediate time frame fair
8:23value gap,
8:25you look for the liquidity sweep and
8:27engulfing candle entry, and then execute
8:30your trade.
8:31That's it. Simple process, simple
8:34framework, but extremely powerful once
8:37you truly understand it properly.
8:40So now, let's go to the chart and look
8:42at some real examples of this three-step
8:44process playing out in the live market.
8:47Now, this is the example we are going to
8:49use.
8:52This happened on Euro to US dollar on
8:55the 14th of May, 2026.
8:59So the first thing we do is to get our
9:01bias, and that will be gotten from the
9:03daily time frame.
9:05When we look at the daily time frame, we
9:08can clearly see that price closed below
9:10the previous candle's low.
9:12And this immediately tells us that we
9:14are bearish.
9:15But that is not the only thing.
9:18>> [clears throat]
9:18>> Because when we look toward the
9:19left-hand side, we can also clearly see
9:22that price also disrespected a bullish
9:25fair value gap.
9:27So now we have two things aligning
9:29together. We have candle analysis, and
9:32we also have a bullish fair value gap
9:35being disrespected. And both of them are
9:38pointing toward bearishness,
9:40which clearly tells us that we should
9:42only be looking for bearish trades.
9:44Now, in terms of liquidity, the previous
9:47candle's low becomes our first draw on
9:49liquidity.
9:50And then this swing low sitting below
9:52price becomes our next draw on
9:54liquidity.
9:55So, overall, our bias is bearish.
9:59Now, the next thing we need is order
10:01flow.
10:02Here, the 4-hour or the 1-hour can be
10:04used. But we are going to use the 4-hour
10:07time frame to identify our bearish order
10:10flow.
10:12Now, right here on the 4-hour time
10:13frame, you can clearly see that price is
10:16currently sitting inside a 4-hour
10:19internal range liquidity.
10:21And since price is currently inside an
10:23internal range liquidity, and we are
10:25already bearish from the higher time
10:27frame,
10:28what should naturally be our
10:30expectation?
10:31We should expect price to seek out
10:33bearish external range liquidity.
10:36So, now we already have our bias, and we
10:39also have our order flow aligning
10:41perfectly with that bias.
10:43The only thing left now is our entry.
10:46And this is where we now go down to the
10:4815-minute time frame.
10:50Now, remember, what we are looking for
10:53on the lower time frame is very simple.
10:55We are looking for a liquidity sweep,
10:59and then an engulfing candle. So, now
11:02let's play price forward and see what
11:04eventually happened here.
11:06Right here, you can see price was moving
11:09around for a little while.
11:12And then eventually, we got the sweep of
11:15liquidity.
11:16Now, let's actually take price one
11:18candle back so you can see this clearly.
11:21Right here, you can clearly see that the
11:24liquidity sweep happened with just a
11:26wick.
11:27Price quickly swept the highs, left a
11:30wick behind, and immediately rejected.
11:33Now, after sweeping those highs, what
11:36did we get next?
11:38The very next candle became a bearish
11:40engulfing candle.
11:42And that is exactly the entry model we
11:44talked about earlier in this video.
11:46So, now at this point, all you have to
11:48do is manually execute the trade from
11:51that bearish engulfing candle, place
11:54your stop loss above the swing point,
11:56and then target a simple 1:2 risk to
12:00reward ratio.
12:02Or if you want, you can even extend your
12:04target toward the external range
12:06liquidity.
12:07Very simple, very clean, and very
12:11precise.
12:12So, now let's play price forward and see
12:14how this trade eventually played out.
12:17And right here, you can see that price
12:19immediately started moving in our
12:21direction.
12:22And within the next few hours, it hit
12:25take profit.
12:26And honestly, this is how simple trading
12:29can become once you truly understand the
12:31process.
12:32Get your bias,
12:34wait for your order flow to align with
12:36that bias,
12:37and then wait patiently for your entry
12:39confirmation.
12:41And once you keep repeating this process
12:43over and over again, you naturally
12:45become more confident, more disciplined,
12:49and more consistent over time.
12:51So, if this video was helpful to you, I
12:54would really appreciate it if you gave
12:56the video a thumbs up and subscribed.
12:59And I'll see you guys in the next video.

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