After 5 Years Studying Candlesticks... This Is the Only 4 Hour Candle Close You’ll Ever Need — Transcript

Full transcript

1. 0:00Today we'll be learning exactly how I
2. 0:02determine my daily bias and market
3. 0:04direction perfectly every single
4. 0:06morning. Now I follow a very simple
5. 0:08three-step top-down analysis approach
6. 0:11that allows me to maintain an 82% win
7. 0:13rate and it's the same approach I've
8. 0:15used for the last four years of my
9. 0:17trading. No need for any complicated
10. 0:19analysis approach just pure price action
11. 0:22and candle behavior. Now our entire
12. 0:24story of the day starts on our daily
13. 0:26time frame. This holds the main
14. 0:27foundation of where the mark wants to
15. 0:29move for this day. We then move on to
16. 0:31the 4hour time frame where we then
17. 0:33identify what strategy we'll be using
18. 0:35depending on the mark condition. In
19. 0:36today's video, we're going only through
20. 0:38one of the five main strategies used. If
21. 0:41you guys want to get access to the rest
22. 0:42of them, you can get that by booking a
23. 0:44call with me. But we'll be going over
24. 0:45the 4hour box strategy today. Now, this
25. 0:48in nature is a continuator model. So,
26. 0:49you want to be looking for a
27. 0:51continuation across all your time
28. 0:53frames. That's where we also be getting
29. 0:54in depth into today. And then lastly,
30. 0:56the 5m minute time frame. Just very
31. 0:57briefly, it is where we finally get our
32. 0:59entry model as well as a few different
33. 1:01entry criterias that allows us to get
34. 1:03the final nail in the coffin. So, we get
35. 1:05our trade of the day. Now, on the daily
36. 1:07time frame, as we said, we're looking
37. 1:09for clear market direction. We're not
38. 1:10looking for any hustle and buster that
39. 1:12could confuse us. If the market is
40. 1:14showing you confusion, you don't want to
41. 1:15trade that confusion cuz then you lead
42. 1:17to regretting any mistakes that you
43. 1:19could fall into. Now, there are certain
44. 1:21situations where we can adapt to the
45. 1:23market condition. Once again, I do
46. 1:24discuss this with our members, but we're
47. 1:26going to be focusing on what's more easy
48. 1:28to identify a clear trend. Now, as you
49. 1:30can see, this is fulfilled by numerous
50. 1:33bullish candles that are taking
51. 1:34priority. So, with radio within this
52. 1:35market, you can already tell that very
53. 1:37easily. We want a bullish bias across
54. 1:39our 4hour and our 5m minute all day to a
55. 1:41long trade of the day. It's very
56. 1:43integral that we have the market showing
57. 1:45us in this clear direction. Now, you
58. 1:46don't need all of these candlesticks on
59. 1:47the daily time frame to confirm your
60. 1:49bias. I very much believe that if you're
61. 1:51trading a currency, you want to be
62. 1:52focusing on short-term price action to
63. 1:55determine that bias. This is still a lot
64. 1:57of data that would be more suitable for
65. 1:59swing traders. But if you're a scalper
66. 2:01looking for quick one to two hour move,
67. 2:03just look back at your last four daily
68. 2:06candlesticks. If they show you preceding
69. 2:08bullishness, then you want to be looking
70. 2:10for that next current day candle to also
71. 2:12fulfill that bullishness and then
72. 2:14continue upward. Very simple. Now once
73. 2:15again this is the flow of our analysis.
74. 2:18The daily time frame which we just
75. 2:19discussed the 4 hour where our strategy
76. 2:21is placed and the 5 minute where our
77. 2:23entry solidified. You can also look to
78. 2:25the one minute time frame if you're
79. 2:27still getting stuck with the lower time
80. 2:29frame movements. It does show you a bit
81. 2:30more detail but I do usually like to
82. 2:32stick to the 5m minute more solidified
83. 2:35less quick changes. So you can stick to
84. 2:38that if you are accountable. Now let's
85. 2:41quickly go over our far strategy. Now,
86. 2:44the 4 candle that we mainly focus on is
87. 2:47the 5:00 candle. Now, the reason why we
88. 2:49focus on the 5:00 Eastern Standard Time
89. 2:52candle is because when you're trading
90. 2:55the New York session, this kind of
91. 2:56closes exactly at New York open. Okay,
92. 2:59so just to clarify, a 4hour candle stem
93. 3:02from 5:00, 6:00, 7, 8, and 9. That's
94. 3:06four consecutive hours that's gone
95. 3:09through that candlestick and bang on
96. 3:12near close our 9:30 open. So, this is
97. 3:14all for the New York traders. If you
98. 3:15trade London, I would recommend that you
99. 3:18look into the 9:00 p.m. candle instead
100. 3:20cuz that pretty much closes very close
101. 3:22[snorts] to the 3:00 uh open for London.
102. 3:24Now, that time is being taken care of.
103. 3:28There are three main quadrants we focus
104. 3:30on with this far candlestick. And this
105. 3:32can be derived from a simple Fibonacci
106. 3:35tool from the high to the low point. And
107. 3:38you want to be focusing on these levels
108. 3:4025, 50, and 75%. Now the first C is our
109. 3:45premature zone. This is where we look
110. 3:47for an early retrace for price to then
111. 3:50extend higher. The optimum zone is
112. 3:52between the 25 to 50%. This is where it
113. 3:56is a deep enough retracement for a
114. 3:59strong enough and more impulsive trend.
115. 4:02So if you're looking at this, this would
116. 4:03be a bullish candle in a very impulsive
117. 4:05market. This would be a short enough
118. 4:07retracement for price to continue
119. 4:08higher. Now these two zones here at the
120. 4:10bottom, the overextended and danger
121. 4:12zone. We like to stay away from them
122. 4:14because if we see price retracing beyond
123. 4:16it, this is not a signature for an
124. 4:19impulse market. By definition, an
125. 4:21impulse market is where we see very long
126. 4:24strides in continuation of the trend. So
127. 4:27in this example, a very long stride to
128. 4:30the upside and then want a very short
129. 4:32retracement to then continue a very long
130. 4:35stride. Once again, if we instead see
131. 4:38price create a long stride and then also
132. 4:39as well as a deep retracement, this is
133. 4:42more so looking to price creating a
134. 4:44reversal and that is not what we want.
135. 4:46We want pure simple continuation for us
136. 4:49to trade. That's why we usually focusing
137. 4:51on the upper quarter of this quadrant
138. 4:54for price retrace and then continue
139. 4:56into. Now once again as you can see this
140. 4:59would be your previous candle namely
141. 5:00your 5:00 candle and then this will be
142. 5:02your 9:00 candle the brand new candle
143. 5:04that you will be trading. You're looking
144. 5:06to enter around the wick and then trade
145. 5:08the entire candle as it then
146. 5:10distributes. And as you can see a very
147. 5:13key signature is that this wick is not
148. 5:15deep. it is just within the 25% of our
149. 5:19previous candle which is why we're
150. 5:20looking for those premature to optimum
151. 5:23retracements. Now this is the tax man
152. 5:26model. It's a very important one. Our
153. 5:29IRS system this helps us especially on
154. 5:32the lower time frame to really
155. 5:34categorize price action that could be
156. 5:36very complicated. Now the three steps
157. 5:41that price follows with this procedure
158. 5:43is our impulse which is in alignment
159. 5:46with our trend. So if in a bullish trend
160. 5:48move to the upside is the impulse. If
161. 5:51we're bearish moment to the downside is
162. 5:54then our bearish impulse. We then have
163. 5:56our range where price is simply in the
164. 5:59name consolidating creating liquidity at
165. 6:02the highs as well as the lows. Now our
166. 6:05third step is the sweep which is the
167. 6:06most important part where price needs to
168. 6:09sweep our liquidity. With ever market
169. 6:12trading there will always be some sort
170. 6:13of super liquidity. So this exactly what
171. 6:15we're looking for rather than said we be
172. 6:17patient and wait for a liquidity sweep
173. 6:19rather than be liquidated later on in
174. 6:22the market. So when you see that price
175. 6:23takes out the liquidity at the lows, you
176. 6:25then know that there's a high chance the
177. 6:26price wants to then continue and then
178. 6:28sweep the liquidity at the highs which
179. 6:29leads to a brand new impulse and then as
180. 6:32you can see price now restarts this
181. 6:35model once again impulse range sweep and
182. 6:38follows this loop. Once again it's the
183. 6:40same for bearishness impulse range sweep
184. 6:43at the highs and then moving lower. Now
185. 6:48using these into continuation are what
186. 6:50makes our top down analysis support very
187. 6:52important. So we already understand that
188. 6:54our dailies candle would be 4 to three
189. 6:58bullish daily candles are all showing
190. 7:00bullishness. Our 4hour we're then
191. 7:02looking for that 5:00 candle marking out
192. 7:04that entire high to low to get our
193. 7:08premature and optimum zones. Then on the
194. 7:11five minute we've been looking for our
195. 7:13IRS signature price to impulse range and
196. 7:17as it's making the sweep it also acts as
197. 7:20a retrace. As you can see this is
198. 7:22bearish and this is bullishness into
199. 7:25bearishness into new found bullishness.
200. 7:27This is what's happening and price is
201. 7:29rebalancing that far box. It's very
202. 7:32important as price comes back to retest
203. 7:35this far box. We're then looking to then
204. 7:38find a very simple entry model and then
205. 7:40end our trade and then continue higher.
206. 7:42Okay. Now, once again, if you guys need
207. 7:44more context, this is what you'd want to
208. 7:46look for on your 1 minute time frame. A
209. 7:48simple change delivery. So, price
210. 7:50closing below a low and then rebalancing
211. 7:54off a breaker block. I do prefer this
212. 7:58over a FG or an order block because just
213. 8:01alleviates any stress. If price wants to
214. 8:03come to the extreme order block, it
215. 8:04will. If price wants to come to NEG, it
216. 8:06will. But majority of the time, it will
217. 8:07like to rebalance of a break block. It's
218. 8:10the easiest. It's the fast for price and
219. 8:12then pushes away with this candle.
220. 8:14That's when you're looking to enter.
221. 8:16Now, let's go into a live example we
222. 8:17actually took today. So, I can show you
223. 8:20guys in live top on how to use it. Once
224. 8:22again, you guys need more clarification
225. 8:24on this. Okay, we only delved into one
226. 8:27of the top down analysis I use for the
227. 8:30market. Once again, there's five more
228. 8:31which are using different market
229. 8:33conditions. This is made for
230. 8:35continuations impulse market. Okay, as
231. 8:38you know market always be like that.
232. 8:40There will be slower days. There will
233. 8:41market consolidations. There's different
234. 8:43approach to trade with that. If you want
235. 8:45to know about that, click the link
236. 8:46below, call me and we'll discuss that as
237. 8:49well. And everything that we discussed
238. 8:51today is also within our free ebook. And
239. 8:53everything discussed today is also
240. 8:54within our one candle mechanics ebook
241. 8:57which you can also get in the link in
242. 8:59the description. So you want to increase
243. 9:00your knowledge, make sure to take that
244. 9:03opportunity there. So we're firstly
245. 9:05starting on our daily time frame. As you
246. 9:06can see, I'm very zoomed in because once
247. 9:08again, we are not trying to predict the
248. 9:09next 10 years of price. We're just
249. 9:11trying to predict and trade the current
250. 9:13day. So right here, as you can see, this
251. 9:17is our last three to four candlesticks.
252. 9:22And you can see it's all following a
253. 9:23very strong bullish signature. There was
254. 9:25FG price tapped into that showed us a
255. 9:28very good extension model into the
256. 9:30upside. So this is our current daily
257. 9:33candle bullish. Previous daily candle
258. 9:35also as well bullish. What you can
259. 9:37actually notice is you just create our
260. 9:39little box here. What you notice is that
261. 9:43we are rebalancing into the optimum zone
262. 9:46of our previous day candle. This is very
263. 9:48good once again for a impulsive market.
264. 9:50So, we're just going to mark out our
265. 9:52daily high point solely as a draw on
266. 9:55liquidity. Okay, we want to look look to
267. 9:57target price higher. This is definitely
268. 9:58a target that we want to see price reach
269. 10:01within the day. I'm not going to really
270. 10:04mark out the daily low because we're not
271. 10:05really looking for price to move lower.
272. 10:07Okay, so now going on to the 4hour time
273. 10:10frame. Okay, now where we currently are,
274. 10:13this is our daily high point and this is
275. 10:16our 5:00 candle. I certainly just jump
276. 10:19on here because by the time I'm trading
277. 10:21it's very close to my 9:00 9:30 open. So
278. 10:25don't really focus on any before that.
279. 10:28So very easily we are marking out that
280. 10:304hour high and low point. Once again
281. 10:33remember we're looking for bullish
282. 10:35intention. So this is how we're want our
283. 10:38next 9:00 candle to pretty much trade.
284. 10:42Okay up towards those highs. So now we
285. 10:45at least envision where we're going. We
286. 10:47want to go down to our 5 minute time
287. 10:50frame and pay close attention to this.
288. 10:52Once again, remember not to forget to
289. 10:55draw your 4hour box. So here you go. As
290. 10:58you can see, this is my 5:00 4 candle.
291. 11:02And I also want to make note guys, I am
292. 11:03using UTC minus 4 New York time. So make
293. 11:06sure you're using the same times as me
294. 11:07so there's no discrepancies with time.
295. 11:10Okay. So there you go. Now we're waiting
296. 11:12for is simply for price to push out of
297. 11:15this area and then rebalance around
298. 11:17here. Okay. So actually what we get now
299. 11:19at 9:00 is that we just immediately get
300. 11:21price come into this area and then give
301. 11:23us a very sharp reaction out of it. That
302. 11:26is really good. That is just what we
303. 11:27want to see because it actually now
304. 11:28starts to draw our categories here. This
305. 11:31is our impulse and right here this is
306. 11:35our range that price created and this
307. 11:38one candlestick will act as our sweep.
308. 11:40So that's our impulse range and sweep.
309. 11:42So right now what is the next phase
310. 11:44looking for impulse exactly? So really
311. 11:48just from this we can already go ahead
312. 11:49and enter a trade right there. But if
313. 11:51you guys want a bit more context I'll
314. 11:54show this to you guys on the 1 minute
315. 11:55time frame. So as you can see there now
316. 11:57it's a lot more clear on the 1 minute.
317. 11:59Very strong impulse there. We start to
318. 12:00consolidate and here we then take out
319. 12:03that liquidity. Where's the next
320. 12:05liquidity? At the highs. So we're going
321. 12:06to end up pushing up higher. So, that
322. 12:08being said, stops just below here. We're
323. 12:10going to wait for a little nice bullish
324. 12:12kind of push here. So, pretty much right
325. 12:14there. So, I'm not really sure if this
326. 12:16is our entry point. I think we entered
327. 12:18around lower or higher, but relatively
328. 12:20close to entry and then we are targeting
329. 12:24that daily high. So, there's our daily
330. 12:26high gloss a lot of room to breathe.
331. 12:29Okay, still a very good R. So, that
332. 12:32being said, very simple top down
333. 12:34analysis approach. Daily was bullish. 4.
334. 12:36We're looking for that same bullish
335. 12:38continuation. And now in the final, it
336. 12:40shows us very clear indications of our
337. 12:41IRS RS model impulse range sweep into
338. 12:45new impulse into our trade. And then we
339. 12:48look at how price reacts. And there you
340. 12:49go. That was the TP we got. So I will
341. 12:51post the exact entry screenshot. Now if
342. 12:54you guys want to actually learn this a
343. 12:55lot more in depthly and actually see me
344. 12:57do this live with my community, you can
345. 12:59get access to our W and Discord
346. 13:01community below to trade with me every
347. 13:04single day. see the market through my
348. 13:06lens, get my daily outlook and be able
349. 13:09to follow that every single day makes
350. 13:11the learning curve a lot less steep. So,
351. 13:14it just helps you with your entire
352. 13:15trading journey and just reduces the
353. 13:17success time. Now, once again, there has
354. 13:20been a full video. I go deeply into this
355. 13:21for box strategy. I'll also link that
356. 13:23above. Once again, everything I've
357. 13:25discussed today has already been
358. 13:26discussed in our full ebook as well as
359. 13:28some extra bits and hints on examples
360. 13:31and how to really refine this. Want
361. 13:32that? Grab that in the link below.