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How I Replaced Market Structure with One Line (Full Tutorial) — Transcript

by Iliya Sivkov - Trading Fanatic · 10,283 words · 1,364 segments · language en · Watch on YouTube

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0:00Hello fanatics. Welcome to this
0:02educational video in which I'm going to
0:04teach you a tool that replaced market
0:06structure for me. It's very simple and
0:09it's very effective. So come with me and
0:12let me teach you all about it. But now
0:14first you might be asking what is wrong
0:16with market structure. All right. So
0:18market structure has a little bit of a
0:20problem is that if I right now give you
0:22this chart and I ask you to pause the
0:24video and I want you to mark up how you
0:26see this market structure. I'm pretty
0:28sure if 10,000 people watch this,
0:30probably 9,000 of them are going to draw
0:33it differently. We're going to have some
0:34similarities, but most of them are going
0:36to be different, right? So, it can be
0:40drawn in many ways. Some guy can say,
0:42okay, we're going to draw from this low
0:44to this high and that is my bullish uh
0:46push. Then on the pullback at the 50%,
0:48I'm looking to go long. Right now, we're
0:50going under 50%. Are we still long? Are
0:53we bearish right now? Are we still
0:54bullish? When do we get bearish? What is
0:56the market structure? Right? Right? So
0:57that is tricky. Now what other people
1:00would do, which is what I would probably
1:02do a little bit more, is you are going
1:03to really zoom in a lot and you're going
1:05to draw all of these recent breakup
1:07structure and trend changes that allows
1:09you to kind of flow with the es and
1:12flows with the market. But then you get
1:14into a very common question is what is
1:17valid structure? What is invalid? Where
1:19is my high? Where is my low? Where do I
1:20draw the structure break from? So like
1:22for example in this very bullish move,
1:24uh do we draw it from here to here? Do
1:26we draw it from here to here? Like why
1:28is this the major low or why is this one
1:31then the major low? Then where is my
1:33trend change? Is it going to be here?
1:34Like why is it here? Why is it not here
1:36or why is it not here? So you kind of
1:38tend to get all of these questions which
1:40is the main drawback of market
1:42structure. And then of course we get to
1:44the other details which is like do I
1:47take a body break, do I take a wick
1:48break and so on and so forth. Now don't
1:51get me wrong, I love market structure.
1:54I've used market structure for many
1:55years and I still do but right now I've
1:57come to the point at which it's kind of
1:59ingrained in my mind. However, I always
2:02advise that everybody learns market
2:04structure especially at first and if you
2:06really want to learn market structure
2:07and everything that I have created I
2:10would like to send you a little bit of a
2:12playlist or just send you these three
2:13videos. So if you don't want to go and
2:15search for them, just comment below
2:17market structure if you want to leave a
2:18comment. Comment also market structure
2:21and I'm going to send you all the links
2:22because these three videos basically
2:24cover everything there is to market
2:26structure. How I personally read it,
2:28what are my exact precise rules, right?
2:32And then do I take wicks or body breaks
2:34and how the approach overall is.
2:36However, through uh a lot of work, I
2:39found something a lot simpler which I
2:41actually use for bias entries and also
2:43thresholds. So, what do I need about
2:45thresholds is u when to trade and when
2:48not to trade. So, what is the threshold
2:49between taking a zone or going with a
2:52trade and what is the threshold not
2:53going for it. So, let me teach you all
2:56about it and that tool you might be like
2:59that guy's going crazy adding indicators
3:00but that is the 50 exponential moving
3:03average. So here is that same chart that
3:06I showed you with market structure. Look
3:08how simple it is right at the bottom
3:10right there. We broke in, we retested
3:12the EMA. Since then, we have been in the
3:15long regime. The market is just above
3:16the EMA, acting as support, acting as
3:18support, acting as support. Here we
3:20broke the EMA and retested it. That is
3:22our trend change. Now we're in a bearish
3:24regime. We're looking for shorts. We
3:26keep shorting. We keep shorting,
3:27bouncing. Here we had a trend change,
3:29but right now we're kind of having a
3:32little bit of indecision. So here you're
3:33like longs or shorts, you got to wait
3:35and I'm going to explain all the rules
3:36that there is to the EMA. Then we break
3:39lower and then trend regime changes to
3:41bearish and we just continue going
3:43short. So you might not be convinced
3:45yet. You might be asking why why the 50
3:48EMA? What's with that EMA? So pretty
3:50much what I found is that the 50 EMA
3:52gives us an average market structure and
3:55an intermediate term trend. Uh this is
3:58the best EMA in my opinion for shorter
4:00term trades mainly for day traders,
4:02right? Because you have the 200 EMA, the
4:05150, the 100 EMA. These are very
4:07long-term. If you plot these on your
4:09chart, it's going to be like way above
4:10or way below price action is not very
4:12relevant. But the 50 EMA is very close
4:16to the price action and it's also
4:18exponential, which means that I mean
4:20there there's a lot of math behind the
4:22simple moving average is very easy.
4:24takes like the closing price of every
4:25single day and then if you have a 50
4:27it's going to take these 50 days and
4:29divide it by 50 the average and then
4:31it's going to give you the average. But
4:33the exponential it's putting more
4:34importance on the most recent moves. So
4:37you kind of put more importance to the
4:39most recent market structure. That is
4:40why I've chosen the EMA for my day
4:42trading approach. All right. What is
4:45also incredible is that it acts as
4:47dynamic support and resistance and it
4:49gives us a trend and it also helps us
4:51avoid bad trades. Right. So it serves
4:53three purposes. And also what is very
4:55interesting is that it is an
4:57institutional tool. So the big players,
5:00the big algos, they refer to the 50-day
5:03moving averages. And I've read this in
5:05the research and I've studied from
5:06mentors as well. For example, what I
5:08learned is that the big players, the
5:10algos and even like big hedge funds
5:13because they really don't look too much
5:15at market structure, supply demand,
5:17drawing order blocks and fair value gaps
5:19and all these things. They look at
5:20simple things. They just want to buy at
5:23a good average price, right? A lot of
5:25times this can, for example, be VWAP.
5:27All right? But for a lot of investments
5:29as well, they use the 50-day moving
5:31average. So you go long above it. So
5:34you're bullish bias above the 50. All
5:36right? You refrain from buying when it's
5:39reaching two standard deviations on top
5:41of that, which I'm going to show you
5:42just a bit. And you also refrain from
5:44buying when we're under the 50-day
5:46moving average because in this case,
5:47we're not trending. All right? So the 50
5:50moving average in the institutional
5:52world acts as a mean for price like a
5:55mean value like a fair value like what a
5:57VWAP is which is volume weighted average
5:59price. It's still an average price but
6:01it's also weighted with the volume while
6:03the 50 moving average is just price
6:06right it's a lot simpler so if I
6:08actually show you what I mean uh this is
6:10what I use for my investments for
6:12example that is again the 50day moving
6:14average with two standard deviation
6:16bands. All right. So, basically what you
6:18see is happening here. Do you spot a
6:20pattern? By the way, you can pause and
6:22like check it out. What we see happening
6:24here is that anytime we go outside of
6:27the upper band, all right, so that is
6:29what it is institutionally expensive.
6:32The market tends to gravitate back to
6:33the mean. We go above the band,
6:35gravitate to the mean. And then the mean
6:37is where again there are institutional
6:40orders. People are looking to step in
6:42there to add to positions or to protect
6:43positions. You can see we're bouncing
6:46from here, getting outside the band,
6:47coming back and bouncing again. Then
6:49here we're kind of oscillating. Now look
6:50at the bottom by the way, right? That
6:52what is that? That is considered right
6:54now cheap. It's too low. And then when
6:57it gets too low, you can see these are
6:59the best opportunities, by the way, to
7:00be buying stocks. If you're not fearful,
7:02of course, this is where I buy stocks.
7:04That's how I make great returns buying
7:05stocks at these levels because there
7:07you're getting at a very great price.
7:09And then when the market starts trending
7:11back up, you're getting a really good
7:12deal. But then you always kind of see
7:14how it oscillates around the 50day
7:16moving average here, right? It's a the
7:19mean price and anytime we go above the
7:21band, come back above the band, come
7:23back to the mean, try to bounce, go back
7:25to the other extreme, bounce to the
7:26middle, extreme again, bounce to the
7:28middle, extreme, and then boom, boom,
7:30boom, always retracing back to the mean.
7:32So you can basically even swing trade
7:34stocks like this with this very simple
7:36tool. And if you kind of just look at
7:38how well it responds you know okay like
7:41this is definitely used by big players
7:43if from these kind of levels very often
7:45we are getting a move. All right so that
7:49is what also made me really consider it.
7:51All right. But for my day trading, which
7:52is on, for example, EU, GU, and gold,
7:55maybe even indices, right? But on
7:57indices, I use a bit more of a VWAP, I
7:59chose the 50 EMA. Why? It's objective
8:02and it's real, right? So, if 50 traders
8:05are given a chart and asked to draw
8:07market structure, probably everybody
8:09will do it differently, maybe with some
8:11similarities. But if we give that same
8:13chart, right, and we put the 50 EMA on
8:15that chart, everybody's going to have
8:17the same, right? And if everybody can
8:20see that EMA right alos can refer to it
8:23because in order for you to build an
8:25algo on market structure what is correct
8:28market structure how exactly are you
8:30going to draw it like where is going to
8:31be the low where is going to be the high
8:32the high candles of pullbacks you need
8:34no the 50 EMA it is a number it is
8:37strict and precise and that is why it's
8:40easier to to again put that into an algo
8:43so that the big players can actually put
8:45orders at that at those places you have
8:48liquidity liquidity and orders and
8:49that's what makes it very powerful. All
8:51right, so hope I kind of convinced you a
8:53little bit. Now, let me actually show
8:55you how to use this tool. We're going to
8:56keep this tutorial nice and simple and
8:58straight to the point. The rules and the
9:00guidelines. Let's have a look. So, the
9:0350 EMA has two uses.
9:07Hard time frame trend and average market
9:10structure. All right. So, if in your
9:12strategy you're doing any sort of a top-
9:14down analysis, right? So going from
9:16let's say daily 4 one hour or weekly
9:18daily 4 hour and and analyzing the hard
9:20time frames the 50 EMA can definitely
9:23help you add a little bit of an edge.
9:26All right. If you're not doing any sort
9:28of top down analysis then probably not
9:31really. So if you're just only staying
9:33on the one minute time frame then
9:35probably you don't really have a use for
9:36it. So if you're just a scalper just not
9:39moving away from the one minute time
9:40frame it's probably not going to be a
9:42very big use to you on the high time
9:43frames. But I still use it on the lower
9:45time frames to confirm an entry. So I
9:48use it for entry confirmation if you
9:50wait for any sort of confirmation
9:52entries as well. So if you're not trying
9:53to catch the top, the literally top or
9:56you're not trying to catch the bottom.
9:57So let's say you're waiting for some
9:58sort of a market structure shift or an
10:00imbalance out of your zone, you wait to
10:02see a reaction from your zone to confirm
10:05that your zone is actually holding. Then
10:07the 50 MA can also give you an
10:09additional confluence. All right. So now
10:13we know the two uses of the EMA. Let's
10:15see how do we apply for both cases. So
10:19the 50 EMA on the higher time frames.
10:23First, which are the higher time frames?
10:24Well, we have the weekly, the daily, the
10:264 hour, and the 1 hour. Those are the
10:29time frames I personally use to
10:31determine my trends, to determine my
10:33bias, and to also choose my zones or my
10:36points of interest or whatever you like
10:38to call them. All right. Now, you might
10:40ask, what about monthly? I personally
10:43don't use monthly anymore. Uh, I'm a day
10:45trader. I enter my positions and I exit
10:47them within the day maximum. Usually
10:50like around 1 hour, maybe two hours,
10:52sometimes, sometimes less than a 1 hour.
10:54I don't need too much the monthly time
10:56frame. And the monthly time frame is
10:58very slow. It t it takes a lot of time
11:00to react. So, I don't even look at it
11:01too much. I would even say the weekly. I
11:04don't pay too much attention on the
11:06weekly. I would just check it once per
11:07week to see kind of where we are. Maybe
11:09I'm going to check the EMA, but if it's
11:11not like something relevant right now, I
11:14just don't use it at all. The main time
11:16frames I use for my strategy are the
11:18daily, the 4 hour, and the 1 hour. This
11:20is where I determine the trend. This is
11:22where I pick my zones as well. All
11:24right? And then based on the time frame
11:27of the zone that I pick, all right, I
11:29want that zone to be aligned with the
11:31EMA direction. All right? So if I have a
11:33daily bearish zone, I want for the
11:36market to be bearish under basically
11:39under the EMA and I want to have a
11:41bearish EMA which means it's sloping
11:43down. But I'm going to tell you all
11:45about these rules. So these are the hard
11:47time frames. That is how we use it in
11:49general. But right now let's dive deeper
11:51into the general guidelines and all the
11:54rules. So you can take a screenshot of
11:55all this and you can immedately go and
11:57apply it. So the main uh guideline is
12:00basically trade in the direction of the
12:02EMA. All right. So if you have a fall
12:04bullish zone, price should be above the
12:064 EMA and the EMA should be sloping up.
12:09As simple as that. Bullish zone, price
12:12above the EMA, meaning that the EMA is
12:14going to be holding price from the
12:15bottom and the EMA is also sloping up.
12:18Bingo, go for it. Right? But if you have
12:20a 1 hour bullish zone and price is below
12:23the 1 hour EMA and the one hour EMA is
12:25sloping down, that's not good. So if I
12:27kind of try to very quickly illustrate
12:28that let's take this example 4 bullish
12:31zone. So you have a 4 bullish zone right
12:33here and the EMA is pointing up and it's
12:36bullish. Go for it. Right? You are
12:38trading with the trend. However, if you
12:40have let's say a one hour bullish zone
12:42right here. However, the EMA right now
12:45is looking like this. The 1 hour EMA is
12:47bearish. It's sloping down and the zone
12:49is under the EMA. Not good because
12:53what's going to happen if you take this
12:55trade? either the market right now it's
12:56going to find the resistance here and
12:57it's going to dump and fail your zone or
12:59even if you take the trade and tap into
13:01the zone that is going to cause a lot of
13:03resistance and you're going to fail. All
13:05right, so these are just two very quick
13:07examples here to help you visualize the
13:09point. But I have a lot of examples for
13:10you incoming also. The second thing that
13:13you want to consider is the slope of the
13:15EMA. So if you have an inclined slope
13:18then you have a trending market. So that
13:20is the EMA kind of pointing up or
13:21pointing down clearly being sloped. All
13:23right. Now, what is a good slope? A 45
13:27degree one, right? I'm just joking.
13:29There is no good slope. You just need to
13:30see it visually trending higher or
13:32lower. And then, of course, you have the
13:34flat EMA. That is your consolidating
13:36market. In a flat EMA, it's going to be
13:38basically flat. But usually the EMA is
13:40very dynamic. So, when it turns flat,
13:43it's going to be more like a wave
13:45pattern. Like, it's just going to
13:46oscillate, but it's going to oscillate
13:47at the same place. So, that is your flat
13:49EMA. That means that you're having a
13:51consolidation market. So don't try too
13:54hard, but you're going to see later on.
13:56Okay. The third guideline is that the
13:58EMA is a dynamic support and resistance
14:01level. Okay. So if it's a support and
14:04resistance level, what do we want to do?
14:05We want to buy from support and we want
14:07to sell from resistance. So basically,
14:09we want to be looking for bounces from
14:12the EMA. What does a bounce mean? Well,
14:14we tap the EMA and then we bounce from
14:15it in the opposing direction. So once
14:18again, just to give you a very quick
14:19illustration, if we have a bullish EMA
14:22and the market is making higher highs
14:24and higher lows and then it pops into
14:25the EMA, we're looking for the market to
14:27bounce from here, which means we look to
14:29respond to the upside. And if we have a
14:31bearish EMA and the market is trending
14:33bearish and we pull back into the EMA,
14:34we're going to be looking for a bounce
14:36towards the way down. So what I mean by
14:39that is again, don't look for it to
14:40break and forecast the break and don't
14:42try to go against it. look for the
14:44market to bounce in the direction of the
14:46EMA because the EMA is a dynamic support
14:48and resistance level. All right, so with
14:51that in mind, never trade against it
14:54when it's tapped. I want you to pay
14:56attention. We're going to cover that a
14:57little bit later. Right? When the EMA is
14:59tapped, because it's a very powerful
15:01dynamic support and resistance, don't
15:03try to go against it. All right? Wait
15:06for it to clearly break and retest, but
15:08I'm going to give you clear guidelines
15:10on that as well. So, another little
15:12detail. So listen closely because this
15:14is where these are the stuffs that I've
15:16discovered through basically a year or
15:18more of using the 50 EMA. You can trade
15:21towards the EMA. All right? So if the
15:24EMA is bearish, you can go long towards
15:26it as long as it's not tapped yet. So
15:29that is going to be your counter trend
15:30trade. If I once again with my pen here
15:32very quickly illustrate, you might not
15:34see my cursor right now, so excuse me
15:35for that. But if we let's say have a
15:38downtrend and right now the market is
15:40very far away from the EMA, right? Look
15:41at where the EMA is. Look at where price
15:43is. Can you trade long? You can. All
15:46right. So, you can trade long. You can
15:48trade long until the EMA gets tapped.
15:50But when the EMA gets tapped, then you
15:51stop. All right. Why? Because right now,
15:54this was very this will very likely acts
15:56as a dynamic resistance and it's going
15:58to push price lower. Okay? So, that is
16:00what I mean for this one. Never trade
16:03against it when it's tapped, but you can
16:05trade towards it when it's not tapped
16:08yet. All right? A very key rule right
16:10here because uh you can be very u
16:14systematic about it. You can say I'm
16:15only going to look for longs when price
16:18is above the EMA. What if you get
16:19shorts? What if the price gets very far
16:21away from the EMA? So you would like to
16:23pull back to the mean. Okay, you don't
16:24need to be so fixated. Okay. And then
16:28the most important guideline is to look
16:29for EMA agreements across the different
16:32time frames. So what you want to have is
16:35the EMA direction to agree on two or
16:38more time frames. That is when you have
16:40a good bias. All right? And if the EMA
16:43direction is different across the time
16:45frames, you don't have a high
16:46probability bias. Now, how is this going
16:49to look like? If you have been watching
16:50my weekly outlan setups, which I publish
16:52every single Saturday, or if you're part
16:54of my community where I do daily
16:56analysis every single day, sometimes
16:58we're like, okay, weekly bullish EMA,
17:01but a weekly bearish zone, daily bearish
17:03EMA, then a follow bullish MA and a one
17:05hourly bearish EMA. What's going on?
17:07Bullish, bearish, bullish, bearish. So,
17:09what do we listen to? What that means is
17:11that the market is in a very um
17:14interesting zone where what I call like
17:17a determination zone where we're going
17:19to determine whether we go long or
17:20short. So if everything is mixed up,
17:23that means that something's wrong. We
17:25don't have a clear trend. While if you
17:27have a weekly bullish EMA, a daily
17:29bullish MA, and a 4hourly bullish EMA, I
17:32mean the high time frame bias is clear.
17:34Then even if your one hourly is bearish,
17:37it's not that big of a deal. All right?
17:38because we have three or more time
17:40frames agreeing that we're bullish. All
17:43right, so this one is very important,
17:46very important because if you start
17:47having that mismatch between the time
17:49frames, you're like, I don't know what
17:50to do, then just don't do anything. All
17:53right, so these are the the general
17:55guidelines for the hard time frames.
17:57Now, I want to give you three extra
18:00little hacks. All right,
18:03now the EMA is not supposed to respond
18:05to precision. All right. It's not like a
18:07laser level that we're just going to tap
18:09and ping and reverse from it. No. Oftent
18:11times the EMA can body break, but then
18:14it can break back under or break back
18:15above it again. So, when you're looking
18:17for a trend change, all right, looking
18:19for for a shift of of the EMA and a
18:22trend change, look for a clear break and
18:24retest when observing for that EMA break
18:26on the higher time frames with a shift
18:28of the EMA slope. So, let me show you
18:30how that looks, for example, and and why
18:32you should not get caught up on that. So
18:34here for example we're having this
18:35beautiful downtrend. The market
18:37beautiful laser response but you can see
18:39at first it was looking very very very
18:41very bullish but it retraced back closed
18:44with a wick under the MA massive short
18:47and then here you can see we just
18:48absolutely slice through the EMA. So
18:50that is a break of the EMA with a body
18:52by the way. That is a sign of a trend
18:54change. And then you can see the EMA
18:56immediately starts turning flat. A
18:58little bit bullish but turning flat. And
19:00then what you see basically is the
19:01market consolidates and then immediately
19:04whoop breaks back in breaks back below
19:06it. All right. So that was not a
19:08successful retest. The market did not
19:10stay above the MA. It did not come to
19:11retest and to start actually going
19:13higher. So slope right now starts
19:15turning bearish. And then what we end up
19:16doing is we continue lower. Okay. So
19:19just because we're breaking the EMA like
19:21that, don't rush. And I'm going to teach
19:24you another hack to know when this fake
19:26out can potentially happen. Okay? And
19:28here is how a successful break and hold
19:30is going to look like. We had a very
19:32strong uptrend here very far away from
19:35the EMA in fact. And then we very
19:38sharply push and we body break under the
19:40MA. Okay, cool. We actually have a zone.
19:42Here is a little trick for you. So if we
19:44have a zone under the EMA, that is also
19:46very good. We retest the EMA and we push
19:48away. Okay, that is starting to look
19:50good. We're having a successful retest
19:52and the market is pushing away. The EMA
19:54right now is turning flat. That is what
19:56I call again the decision point. Is it
19:58going to break back above or is it going
20:00to hold? And you can see right here
20:01beautifully tap, reject, reject, reject,
20:04reject. All right, buyers try to squeeze
20:07but they cannot. They give up and then
20:09boom, sellers take control and then
20:11since then we have been bearish. So that
20:13is how a textbook break and retest or a
20:15break and hold of the EMA looks like.
20:17Always wait for that when you're looking
20:19for a trend change. All right,
20:22hack number two for you fanatics. When
20:25the EMA turns flat, price will just
20:27zigzag above and below it. All right, so
20:29in these conditions, be very careful and
20:32look for clear pushes away from the EMA
20:34and a creation of an EMA slope. Here is
20:37how that looks like. We had bearish
20:40reactions, beautiful bearish reactions
20:42here. Beautiful short, beautiful short.
20:43And the market comes and starts
20:45responding, break above it, breaks back
20:48under, break above, breaks back under.
20:51Stop looking at this pair right now. Not
20:53good. The EMA is turning picture perfect
20:56flat. All right. And then what you see
20:58happening is kind of tries to goes up
21:00but wicks tries to go again, rejects,
21:01tries to go reject, boom, boom, boom,
21:03boom, boom, boom. Oscillating right down
21:05around the EMA is not good. Flat EMA, no
21:08clear push away, no clear imbalances
21:10above that. This is not good. And then
21:13what you see is happening is uh we wait
21:16to wait and then the market boom. We
21:18have a very clear break, very clear push
21:21away from the EMA. The slope is starting
21:23to turn back down and what we also have
21:25is we have a zone and look what the
21:27market does. It pings the zone. It
21:29absolutely takes book to the tick tabs
21:32the EMA and then goodbye. We go lower
21:35and we keep taking shorts here, shorts
21:37here, short here, here. This one
21:39probably not. It was a sweep of this
21:41high. But anyway, we don't talk about
21:42setups right now. We talk about the EMA.
21:44So, always make sure to avoid the chop
21:47around the EMA, especially when it
21:49starts breaking and breaking back in.
21:51take a pause. Third hack for you here is
21:55to always check one time frame above you
21:58when you pick your zone to trade. All
22:00right? Because that one time frame
22:02higher, if it has the EMA against you,
22:05your zone can I don't want to say
22:08definitely, but very likely it's going
22:10to fail. All right, here's how that
22:13looks like. By the way, here is a setup.
22:16We tap reject. Tap reject. Okay, we
22:19broke it above right here. We pull back
22:21into the fall zone starting to reject
22:23above the MA. That looks like a good
22:24break in retest by the way. All right.
22:26So, we can take that one. We win this
22:28trade. And then the market starts having
22:30the 4 bullish zone. So, we try to take
22:32that one. This one fails. Then we start
22:34breaking under the EMA, but then break
22:36back above, retest above and starting to
22:38get choppy.
22:40Sketchy. Why is that? And then the
22:42market just absolutely crashes to hell.
22:45All right. So, why is this happening?
22:46This is, by the way, the 4-hour time
22:48frame. What did I just teach you about
22:49one of the hacks? Check one time frame
22:51higher. Check the daily. Look what's
22:53happening here. All right, the first
22:55zone actually worked. Why? Because the
22:58daily EMA was not tapped yet. And what
23:00did I tell you in the guidelines? If the
23:02EMA is not tapped, you can trade into
23:04it. But when it's tapped, look at that
23:07beautiful daily candle rejection from
23:08the EMA. And there you try to trade that
23:11fall zone. Not going to work. Yes, on
23:13the 4 time frame, we broke above it,
23:16right? We broke above it, right? But
23:18then look at the daily rejecting
23:20rejecting for day two and then we just
23:22absolutely dumped from the daily MA. Why
23:24again everybody? Because especially the
23:26daily MA that is where I believe
23:28institutions are really positioned. Look
23:30at this by the way here right look at
23:32this break break back in short rejection
23:34rejection rejection short rejection
23:36final rejection short. Like if you can
23:40tell me that there are no sellers at
23:41that level I don't know. All right. So a
23:44very key hack right here. always check
23:47one time frame above you. So right now I
23:50guess we can go have some practice,
23:52right? We can go to the chart. We can
23:54install the EMA and then I'm going to
23:55take you to Trading View right now and
23:57just teach you overall basically how to
24:00look at the EMA and how to analyze the
24:02charts. All right, here we are on the
24:04charts on Trading View. So how do we add
24:07the indicator is we go to indicators
24:09right here and we type exponential
24:12moving average. We click on that one.
24:14All right. Then we go to indicators
24:16here. There is it the EMA. We click on
24:19the settings. All right. And then we go
24:21to inputs and on the length we just type
24:2450. It should be close. Yes. And now
24:26what I like doing is I like making it
24:28from here a little bit thick. Right. The
24:30blue line is fine. Voila. There we go.
24:33Simple. I told you that is a simple
24:35tool.
24:36Now again, I already gave you all the
24:38the guidelines by the way. So there is
24:40not much for me to teach you right here
24:43to show you how to use the EMA. All
24:45right. Now what I usually do is I make
24:47like a very nice top down analysis every
24:49single day. And I would for example I'm
24:51on a random pair right now. This is
24:52goat. Again I'm basically freestyling
24:54this one. So what I would do in this
24:55case is of course I would draw all of my
24:58zones but of course here we're we're
24:59talking about the EMA. Now where are we
25:02right now? We came in we swept this
25:03liquidity on the bottom. The EMA is very
25:05far away. So can I trade into it? Yes.
25:08So can I be long? I can. All right.
25:11However, how can I go long towards that
25:13EMA? I'm going to need some sort of a
25:14zone and then I'm going to drop to the 4
25:16time frame. All right. So, if I was
25:19looking to long here somewhere, right?
25:21Is that good? No. Because what we do, we
25:23just tapped into the EMA. Again, guys,
25:25I'm just going to walk you through the
25:26charts and you're just going to see how
25:29often that EMA gets responded to. Right
25:31here, massive short. Then again, from
25:33here, you continue with the shorts.
25:34Shorts. Shorts. Another short here.
25:36Right. What do we have right now? By the
25:39way, we are starting to have the very
25:41first sign of a break. So, this is fresh
25:43charts, guys, from today. It's live
25:44market. It's not a back test or
25:46anything. We're having a fresh break of
25:48the EMA with a fall zone above it. Now,
25:49what did I tell you in the rules? Okay.
25:52What I would like to see right now is a
25:54retest of the zone, a retest of the EMA,
25:57a hold, and then potentially we can
26:00expand. However, if we break back under
26:02the MA, then basically what's going to
26:04happen is the flow EMA is going to turn
26:06bearish. the daily MA is going to be
26:08bearish and I'm going to be overall
26:09bearish bias as simple as that. So that
26:12is how for example very quickly I
26:14analyzed what kind of bias I have and
26:16then for example that is my 4hour zone I
26:18would like for the zone to be uh above
26:20the MA which is good. So if the market
26:22actually retest this zone is going to
26:24also be retesting the EMA which is very
26:26good and then of course I can check the
26:271 hour. The market has definitely broken
26:29the 1 hour uh here we again had this
26:31what I call everybody the determination
26:33level. So, starting to break above,
26:36break back below, resistance,
26:37resistance, resistance. Ah, what are we
26:38going to do? What are we going to do?
26:39Boom, expand and push away. Now, on the
26:41one hourly, I'm definitely bullish. The
26:43flow is also turning bullish. The daily
26:45is bearish, but we're far away. So, I
26:47can potentially be looking for longs
26:49maybe into the coming weeks. Okay. Then,
26:52of course, you can see on the time frame
26:55again, resistance here. Here we had a
26:58little bit of a determination area. We
26:59kind of break above. Try try try. When
27:02it finally broke and then basically this
27:03is a good short and ju and just look at
27:05it guys. I mean open the 50 EMA there.
27:07There is not much of a homework to do.
27:09Just open and just look at all these
27:11things right here. We broke we broke
27:13back under right. So this is all short
27:15regime here. Here we had a little bit of
27:16a consolidation. Again as I told you
27:18it's not perfect like just look at this
27:22right beautiful bounce. Here we had
27:24again a determination area. What is
27:25that? It's a flat EMA. As I told you,
27:27when the EMA turns flat, it starts like
27:29doing these wave pattern there. We're in
27:31a consolidation, right? What do we have
27:33before that? Uh, a little bit of a
27:36choppiness here, but shorts, shorts,
27:38shorts, break, retest. That is a long
27:39right there. I can see, right? So, you
27:41can go in, you can go and you can do the
27:42case studies. All right. So, I'm just
27:45giving you the guidelines here and you
27:46can definitely do the work. Now, this
27:48works on every single time frame by the
27:49way and every single pair. For example,
27:51if I go to EuroUSD real quick and I
27:53change the time frame to the daily, same
27:55thing. All right. Now, we have been uh
27:58very very bearish, but you can see once
28:00again we were overall bullish here above
28:01the EMA. Longs, longs, longs. We broke
28:03the EMA. How did we break it with a
28:05zone? The market retested that zone.
28:07Beautiful short. And since then, we have
28:08been short under and under and under the
28:11EMA. Here we had acting as support. We
28:14don't want to short. So, for example, if
28:16you try to take a short here, don't take
28:18it. We tap the EMA. Bounce, bounce,
28:21bounce, break, retest, short, retest,
28:24short, lower highs, short, break,
28:26retest, hold above, long, right? Break
28:30retest, absolutely short. So now, in
28:32this case, if I'm to do an outlook on
28:33EU, what I would say, well, we're very
28:36far away from the EMA. So in in such a
28:38case, it's not 100% relevant because
28:40we're very far away from it. But what
28:42could that mean is that the market might
28:44soon want to gravitate towards it. So,
28:46I'm going to be open for longs. Then I
28:49drop to the 40. Can I take long? No. The
28:52market is uh above the 4 EMA. Very
28:54bearish. We haven't really pulled back
28:55into the EMA for a very long time. Like
28:57since here we actually entered into the
28:59decision area on the fall. Then it broke
29:02on the 4 hour and here it also broke on
29:04the daily and then since then we have
29:05been absolutely flushing. So the bias
29:07for us on EU has been absolutely short.
29:11If you check out a little bit to the
29:12left, shorts, shorts, shorts, break
29:15immediate long, long regime, support,
29:18long regime, long regime. Right there,
29:20we actually dipped some shorts decision
29:23area break under the daily MA right
29:25here. This is the daily zone that we
29:26drew uh just a little bit ago and now
29:29we're flushing. Can you use it on the 1
29:30hour? Yes, for sure.
29:33All right, look at the 1 hour
29:36acting as dynamic resistance. Here we
29:38broke and broke back in resistance here.
29:41Broke and broke back in resistance.
29:44Beautiful resistance here. Here we
29:46definitely broke and pushed away. All
29:48right. Um now you can be looking for
29:50example for a quick long here. But again
29:51as I told you the EMA is not a tool on
29:53its own. So would you really look for a
29:55long hair? Um probably not. There was
29:57also a validator high but this is not
29:59part of this video. Then we break and
30:00retest with an imbalance flush decision
30:04area here. Right now we're starting to
30:06slowly break above the EMA. started to
30:08turn a little bit flat. So it's a little
30:09bit 50/50. So that is how I use the EMA.
30:12If I do it for example on GBPUSD once
30:15again I would let's even start from the
30:16weekly time frame. What is the weekly
30:18time frame EMA doing? It's pretty flat
30:20right now. It doesn't really give me any
30:23value. Comes in chops chops chops. Right
30:25now it's under which is fine. Okay. Then
30:28I go to the daily. Okay cool. The daily
30:30the last time it responded was here and
30:32here. All right. Acting as support. So
30:34don't try to short this level because we
30:36tapped the MA. Don't do it. Can you
30:38short up here? You can towards the E MA.
30:40But can you short down there? Not
30:41against the EMA. Then the MA gets broken
30:44and then since then we have been
30:45relatively bearish. All right. However,
30:48what you see what do you see here
30:49happening on the daily? It's just
30:51absolute crap. So what do you expect in
30:53this case the fall EMA or the one hour
30:55EMA to be? I would expect that right now
30:57the one hour or the fall EMA is just
30:59going to be in a wave pattern down
31:00there. Well, not entirely. Uh actually
31:03look at this. By the way, the quality MA
31:05because we very hardly we flushed very
31:08hard. The MA turned in a with a very
31:11steep decline incline acted as a very
31:14nice resistance here again. We broke and
31:16broke back in resistance again yesterday
31:19and right now it's right at the EMA. So,
31:21can I look for shorts right now? No,
31:23because I don't have a short zone. Can I
31:24look for longs? No, because we're at
31:26resistance. All right. If we actually
31:28start breaking above right now the
31:30structure if we start if the EMA start
31:32turning bullish and I start getting
31:34longs on GU then what I can do by the
31:36way is I can look to trade into the
31:38daily MA. So that is how I do it and if
31:40you watch if you want to watch me do
31:42that live you can definitely show up in
31:44the weekly outlook and setups but this
31:46is basically it everybody read the
31:48guidelines again listen to to to them
31:51like uh note them down trade in the
31:54direction of the EMA that is your trend
31:56right trade into it if you want to go
31:58counter trend right sure go counter
32:00trend here all right but ensure that the
32:03EMA is not tapped so here we pushed we
32:05didn't tap the MA we pull back into the
32:06zone then we come into the MA and then
32:08look what happeneds
32:10All right. And if you want to ensure
32:11that you get a very clear um break and
32:14retest, wait for that to happen and then
32:16trade the next setups here. Bearishness,
32:19bearishness, break and retest, longs,
32:21longs. All right, I'm going to end it
32:24here not to make the video too long
32:25because right now we go and we start
32:28talking about entries and then I'm going
32:29to give you a lot of examples about
32:31entries as well. All right, back at the
32:34presentation. Now, we're going to talk
32:35about the EMA on the lower time frames.
32:38Once again, which are the lower time
32:40frames? Well, for me personally, the
32:42they are the 15 minutes, the five
32:44minute, the three minute, and the one
32:46minute. So, those are the time frames
32:48that I use to confirm my entry. Those
32:50are the time frames that I drop to when
32:52a higher time frame zone is tapped. And
32:54do you remember which are my higher time
32:55frame zones? There are the daily, the 4
32:57hourly, and the one hourly. So, if
32:59either of these zones get tapped, I drop
33:01to these lower time frames to confirm my
33:03entry. Now, sometimes I also use one
33:06hourly for entry, but very rarely. I
33:08have to be trading from a weekly or from
33:09a daily zone. And if I trade from if I
33:12use the 1 hour as an entry, it usually
33:15turns into a swing trade. And I don't
33:17like swing trades. So I very rarely use
33:19the 1 hour for an entry. Mainly 15
33:22minute, 5 minute, 3 minute, and and also
33:24rarely the one minute, but it definitely
33:25does happen. All right. So yes, these
33:28are the time frames that I use to
33:29confirm an entry from my zone. And the
33:32usage of the EMA here is very simple,
33:34guys. I need for price to break the EMA
33:37on the entry time frame in the direction
33:40of the trend of my trade, right? Or if
33:43uh the EMA and the price is already
33:45established in that direction, then
33:46there is no need for a break. It's very
33:48simple. It's an EMA alignment, right?
33:51So, if you're looking for a short, but
33:53the EMA uh but the price is above the
33:55MA, then you would need for the market
33:57to break under the EMA. So, right now,
33:59price is aligned with the bearish EMA,
34:01right? But I'm going to show you a lot
34:02of examples. And what that basically
34:04means is that the lower time frame is
34:07aligning with the higher time frames,
34:09right? And it also confirms a shift of
34:12the average market structure. So as I'm
34:14about to go into examples right now, you
34:17know, a lot of uh traders enter with
34:19like a trend change or a market
34:20structure shift. And you're going to
34:22spot that if you use the 50 EMA on the
34:24time frame of your entry very often. It
34:27kind of depends on the pullback and how
34:29uh aggressive the pullback is or how
34:31prolonged it is. Very often your trend
34:34change or your ch what many traders like
34:36to call it is going to be at the break
34:38of the EMA as well. And this is why I
34:40don't try to pinpoint too much these
34:42market structure right now. I just wait
34:44for the break of the EMA. So let me show
34:46you how the simple rule we don't have a
34:48lot of guidelines here for the like we
34:51had uh for the higher time frames,
34:53right? We have one simple rule on your
34:56entry time frame. We look for an EMA
34:58alignment. That's it. If you have a 1
35:01hour zone and you're using a fivem
35:02minute entry, then price must be above
35:04or below the fiveminut EMA to confirm
35:06it. Now again, this depends on the
35:08direction. So if you're bearish, we need
35:10to see price break under the MA. If
35:12we're bullish, then we need to see price
35:14break above the EMA, right?
35:17How does the break work? We need the
35:19body closure above or below the MA. That
35:21is our confirmation. Uh on the lower
35:23time frames, by the way, I don't wait
35:25for the clear breaks and retests. The
35:28clear breaks with a zone uh like we do
35:30on the higher time frames. However, the
35:32the concept is fractal. So the exact
35:34same thing that can happen on the higher
35:36time frames can also happen on the lower
35:38time frames. But in order not to
35:39overthink it and and also to make it
35:41very easy for my members also to execute
35:43the entry models, I have really
35:45simplified it. Right? We just need a
35:47body closure above or below the EMA if
35:49it's not aligned.
35:51That's it. Simple as that. Now, of
35:54course, you need an entry model. You
35:56need the strategy overall because the
35:59EMA alignment can be an entry model by
36:01itself. It sure can be, but I use it
36:04more as a confluence to the entry model
36:06that I have rather than a standalone
36:08entry. But you can back test it. I'm
36:10pretty sure that it's going to actually
36:11work great. All right. And what is also
36:13very important is to not micromanage
36:15after the entry. So this is where the
36:18higher time frame guidelines do not
36:19apply on the lower time frame
36:20guidelines. Right? If you have, for
36:22example, a break of the MA but then a
36:24break back in, don't exit your trade,
36:27right? If you get that broken in the
36:30opposite direction, you stay. Don't
36:31exit. Don't bail out. Ensure that your
36:33stop loss is safe and then just accept
36:36the outcome of the trade no matter what
36:38that is. All right. So very key detail
36:41here. That's basically it. So, right
36:43now, I guess it's time to check some
36:46examples. All right, EMA entry example
36:49number one. I'm going to give you some
36:51of the some of, by the way, of our most
36:53recent trades, uh, my trades and the
36:55community just to give a very quick
36:56impression on of how the EMA uh, works
36:59and how simple it is. What do we have
37:01here, everybody, is we have the market
37:03breaking under the MA. Now, in this
37:05case, again, we're going to merge the
37:07higher time frame with the lower time
37:08frame. What do we have is we have an EMA
37:10pointing down. The one hourly zone is
37:12under EMA. Beautiful. Nothing more that
37:15I can want. The one hourly zone gets
37:18tapped. Cool. If you watch, by the way,
37:21my 11-hour tutorial, you would know how
37:23I enter from these zones. So, if you
37:25have not, go check it out. I also talk
37:27about the EMA there. What do we have is
37:29we have the zone getting tapped right
37:31here. The market gives me the entry
37:33model, the fivem minute V. I enter the
37:35trade here and I then check immediately
37:37the EMA. So, in this case, do we need
37:38alignment? We don't because the market
37:41is already cracking down like like
37:44crazy. Price is already under the EMA.
37:46So there is no need for the MA to get
37:48broken. All right. So we are immediately
37:50taking the trade and we exit at the
37:53target. All right. There's a trade. This
37:56is my my live executed trade by the way
37:58just to show you that I'm not just
37:59cherrypicking some examples. Uh
38:02sometimes of course if I want to really
38:03prove a point I will cherry pick an
38:05example. That is perfect but um I
38:07wouldn't do that very often. So in this
38:09case uh okay let me fix that one. Okay
38:13here we go. What do we have is
38:14relatively a similar setup to the
38:16previous one. All right we're having
38:18price under the EMA. This is on the one
38:19hour time frame on gold under the MA
38:22bearish EMA. Now again I want you to
38:24also pay attention what happens before
38:26look at our resistance. By the way look
38:28at the short. Look at this break and
38:30retest with an imbalance above it. Look
38:32at this bounce and then look at this
38:33very clean break and just push away. Do
38:35you spot the patterns? All right. one
38:38hour zone under EMA. What do we have is
38:40the market coming into the zone here,
38:42right? It actually tapped the zone here,
38:44but it didn't offer the trade and it was
38:46also not in the right time. Then we come
38:48into the zone and look what happens. The
38:49market starts rejecting the MA, breaks
38:51above the MA and stays above the MA,
38:54right? But then what we have is a break
38:57back in this very nice bearish candle.
39:00Breaks back under the MA. We have the 5m
39:02minute V forming and then we execute a
39:04trade from here. We're under the MA. And
39:05I want you to have a look at that final
39:07spike. By the way, right, the market
39:09just spiked into the EMA and just
39:11sellers just took control and it just
39:13absolutely dumped price to hell. This
39:15trade was this week, I believe. There is
39:18just to to prove that uh we have people
39:20taking this these exact trades. This is
39:22from our community where everybody's
39:24explaining the trades in great detail.
39:25And if you actually check it out, we
39:27were using the EMA. You can see the
39:29keyword EMA here across all the time
39:31frames. Right? There is another trade
39:32here. You can see the execution once
39:34again. That was a two hour trade. This
39:35one was a This one actually ended up
39:38pushing very hard to like 6 hour or 7
39:41hour even more. But we followed the
39:43plan. Okay, so that is a gold example.
39:46And then if we check out some more,
39:48there is yet another one hour zone. So
39:50I'm I keep showing one hour zone. Should
39:52have picked some more. But exact same
39:54pattern here. We have a decision area, a
39:56little bit of a consolidation. We broke
39:58under and since then we have been short
39:59short one hourly zone under the EMA.
40:02Nothing more to want. We drop to the
40:04five minute. There is our zone that is
40:06stopped. Now look at this one. Because
40:08we had a very big push right here. The
40:10market has definitely merged above the
40:12EMA. What did I tell you? We need EMA
40:14alignment. So even though we had the
40:16five minute um the fivem minute entry
40:19here, the market was still acting as
40:21support at the EMA. So in this case, we
40:23wait for the body break of the EMA. That
40:25confirms the average market structure
40:27shift and that is when we take the
40:29trade. And you can see the market comes
40:30back, retest, pushes down away. Great.
40:33Breaks in. This is why you don't
40:35micromanage. Oh it broke back
40:37above. Oh no, you exit the trade at a
40:39break even, breaks back in, retests, and
40:41dumps to hell without you. So again,
40:43guys, on the entries, don't micromanage
40:45it. All right, I mean for the higher
40:47time frames, you cannot micromanage it.
40:48But there it's like a little bit more
40:50detailed because you really have to wait
40:51to see clear breaker retest in order to
40:54say, "Okay, right now my trend has
40:56shifted." All right, beautiful trade by
40:58the way. Once again there is proof.
41:00There is another proof which is within
41:02here.
41:03Here is gold on the 1 hour time frame.
41:06Now this one I picked this one uh
41:08intentionally because look at where the
41:10EMA is on the 1 hour. We are bearish on
41:12the EMA. So technically bearish bias.
41:15Okay. However, we have this one hourly
41:17zone. And uh before that we found a
41:20bottom. We made a 1 hour zone here. It's
41:22following through another one hourly
41:23zone. So the market is starting to pick
41:25up some longs and we potentially target
41:28this high right here to the left. All
41:29right, one hour is zone. Price is under
41:32EMA. However, remember the higher time
41:35frame guidelines. We can trade towards
41:37the EMA as long as it's not tapped yet.
41:40Because as I told you, the EMA is like
41:42the the fair price, the mean value. So
41:44if the market gets very overextended
41:46from the EMA, that should not stop you
41:48from continuing to take shorts, for
41:50example, down there. But you should know
41:52the further away we are, the higher the
41:54likelihood is that the market is going
41:56to start gravitating towards it to kind
41:58of get towards its mean value. So this
42:00trade idea was exactly this. We saw the
42:02market actually establishing uh overall
42:04bullish here. The EMA was far away. So
42:06we trade into it and then again same
42:09thing everybody. But look at that this
42:11case right the market pulls back into
42:13the one hour zone taps it right here and
42:14the EMA was already bullish. So the five
42:17minute EMA in this case responded uh
42:20perfectly. It was exactly at the 1 hour
42:23zone and we had a beautiful bounce. All
42:25right, we have our entry model. We
42:27execute a trade. Price is above the MA.
42:29Stop loss goes safely under the low. The
42:31market comes to retest the MA for a
42:32second time. Bounces again. Third time
42:35coming in very close and then it rushes
42:37to take profit. Beautiful trade. Once
42:40again, there is proof of the trade. The
42:43exact same trade that I'm showing
42:44executed, right? because these are
42:46trades executed by me or by community
42:48members. I'm not just cherrypicking
42:49examples here. These are real trades by
42:51the way. There is another trade here
42:53with proof as well. And I do believe the
42:56final example here, I picked a 4hourly
42:59example. What do we have? Look at this.
43:01By the way, like recently we have been
43:03very bearish. Look at the MA. Very far
43:05away. So in this case, as we get so far
43:08away, should you be worried that the
43:10market's going to start pulling back to
43:11the EMA? You should be, I guess. But
43:14first, you really need to see some sort
43:15of a shift in terms of like the more
43:17recent price action. And in this case,
43:19I'm going to give you a tip. By the way,
43:21if you're looking to trade towards a
43:23fall bearish EMA, ensure the 1 hour EMA
43:26turns bullish at least. So, very key
43:29point here for those of you who are
43:30still here, right? So, if the 4 EMA is
43:32here, then on the 1 hour one time frame
43:35under, if for example, you start getting
43:37a shift here, the 1 hour EMA is going to
43:39start turning bullish. So then you're
43:41going to be trading a bullish 1 hour EMA
43:43towards the fall bearish EMA. So you're
43:45going to stop somewhere here. And then
43:47from the fall bearish EMA, the market's
43:49probably going to flip. It's going to
43:50break the 1 hour and then both of them
43:52are going to align and you're going to
43:53get a bomb setup. Right? That's how easy
43:56the EMA is, by the way. So let's see
43:58what is happening here. That is the
44:0015minut. We have a top of the zone here.
44:03The market was above the 15-minut EMA.
44:05So again, on the entry time frame, we
44:07need EMA alignment rejection. rejection.
44:10We cannot enter yet. Boom. Massive
44:12bearish engulfing candle under the EMA
44:15body closure. Let's go. We got to take
44:17the trade. Look at what the market does
44:19next. It tries to push up, bounce
44:20resistance at the EMA again, and dumps
44:22to take profit. All right, once again,
44:25there it is. This is actually the trade
44:26that I took. There is my live execution
44:28and also with the explanations as well.
44:31So, just to show these are not
44:33cherrypicked. Oh, I have one more. Ah,
44:35this one. Nice. I also included a stop
44:37loss for you to see that it's not not
44:39everything is a whim. Now, what do we
44:40have here, by the way? So, just pause
44:43for a second. Well, I already show it
44:45right here what it is, but check what we
44:47have. We tapped here with a beautiful
44:49resistance. We flushed. We broke back
44:51above, broke back in, above support,
44:55above, breaking in, reject, reject,
44:58reject, reject the EMA right now, what
45:00is it started doing? It started doing
45:01these this wave pattern, right? It's
45:03just like I don't know rejects, rejects,
45:06rejects, flushes lower and then it pulls
45:09back into my fui zone. At this time
45:11again the EMA is very flat and when you
45:13see this sort of a flatness what I told
45:15you everybody is you're trading in this
45:16sort of a decision zone, this sort of a
45:19determination zone where you kind of
45:21don't know yet is it going to pump or is
45:23it going to dump. So usually it's always
45:25better to wait for it to dump. That's
45:27also another key here is wait for it to
45:29dump. All right. And then there is your
45:32zone. That is when you can start getting
45:33high quality trades. But in this case, I
45:35do believe I took this trade. Uh all of
45:38the community took it because we trade
45:39together. We pull back into the fall
45:41zone. Is the fall zone under the EMA? It
45:44is. Are we bearish? We are. What do we
45:46do is we drop to the 15-inut once again.
45:48The market taps into the the zone here.
45:52But I want you to also spot the 15-inut
45:54EMA. Flat, very flat. Active support.
45:59Active support. acts as support and then
46:01bing, we broke it here with a body.
46:03Well, guess what guys? I got to take the
46:04trade, right? So, we take the trade,
46:07tries to move, breaks back above, tries
46:09to move once again, comes in once again,
46:11and then hit stop loss. Losses happen.
46:14There it is. Showing you that I actually
46:16took the loss. There's the trade,
46:18there's a stop-loss, and of course, the
46:20full breakdown. All right. So, hopefully
46:23these few examples were sufficient. I
46:25can talk for hours about this one, but I
46:27totally feel that this one is going to
46:28give you uh a general idea of how I use
46:32the EMA. So again, just a quick recap.
46:34We have the two EMA usages. We have the
46:37hard time frames where we determine the
46:39trend, the bias, and we can also confirm
46:41our zone. All right? And we use it as
46:43dynamic support and resistance because
46:45you see when the EMA gets tapped, it has
46:47a very high chance of actually acting as
46:49support and resistance. And what I mean
46:51by zone confirmation, so we have a
46:53bearish zone. I need to ensure that I'm
46:55trading uh under the EMA. So, we're
46:58bearish. If I have a bullish zone and
47:00the EMA is coming bearish, then I need
47:02to ensure for example that the EMA is
47:03not tapped. So, that is how I confirm my
47:06zone. When I found a zone, I immediately
47:08refer to the EMA and it's going to be in
47:10either one of these two conditions. I'm
47:11either going to be trading towards the
47:13EMA in a counter trend or I'm going to
47:15be trading with the EMA with the trend.
47:17All right? And then for the lower time
47:19frames, it's very easy for an entry
47:21confirmation with just a body break
47:23under or above the EMA. [snorts] And
47:26once again, everybody, it is just a
47:28confluence. So the 50 EMA is just an
47:30extra tool. It's just a confluence. You
47:32cannot just use it on its own. You still
47:34need your strategy. You still need to
47:36know how to determine bias. You still
47:37need to know how to determine zones,
47:39entries, how to manage the trades. DMA
47:41is just like that little extra. All
47:44right? And actually in my next video I'm
47:47going to teach you another extra tool
47:48which is volume profile. So let me know
47:50in the comments if you would like to see
47:51that. And when you combine all these two
47:53together under the system which is what
47:55I call again the BCE bias context entry
47:59and you add the EMA and you add little
48:01confluences here and there you get a
48:02very high probability of success. But
48:04you should also not overthinking and not
48:06over complicated too much. So my
48:09challenge to you right now is put the
48:10EMA on your chart. See if it can work
48:13for you. Follow the guidelines, study
48:15this once again, and let me know in the
48:17comments what you think about it.

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