How To Day Trade As A Complete Beginner — Transcript

Full transcript

1. 0:00This exact strategy is what I use on a
2. 0:02day-to-day basis and has been back
3. 0:04tested thousands of times and every
4. 0:06month that I tested it, it has been
5. 0:08profitable in the long term. The core of
6. 0:10this strategy uses supply and demand.
7. 0:12Demand is the start of a strong move
8. 0:13upwards. Supply is the start of a strong
9. 0:16move downwards. The idea is pretty
10. 0:18simple. You want to buy from zones where
11. 0:20institutional buying and selling is
12. 0:22occurring. You know, where the big bank
13. 0:24boys are entering. Now, finding these
14. 0:25levels is extremely easy. You simply
15. 0:28find the candle before the strong move
16. 0:30and mark the low to the high of that
17. 0:32specific candle. You then wait for price
18. 0:34to come back to that zone, enter your
19. 0:36position, then proceed to make millions
20. 0:38of dollars. But there's a huge problem.
21. 0:41For example, if we look at this chart,
22. 0:43there's an area of demand here, here,
23. 0:45and here. So, which one do we use? Well,
24. 0:47if you don't know the answer to that
25. 0:49question, it could be the difference of
26. 0:50you losing a trade and you winning one.
27. 0:53So, going back to our example, we had
28. 0:55three different demand zones. Zones 1
29. 0:57and two are fake demand zones,
30. 0:59persuading traders to enter there when
31. 1:01in reality they just become the
32. 1:03liquidity and help move price to the
33. 1:05real zone, zone 3, and that's where
34. 1:07price actually reverses. Now, you might
35. 1:09be sitting there thinking, "Okay, cool.
36. 1:11So, you basically just want to pick the
37. 1:13lowest zone, and that's the one that has
38. 1:15the highest probability of going up."
39. 1:17While yes, lower prices is usually a
40. 1:20good thing when trading, the lowest zone
41. 1:22isn't always necessarily the best one.
42. 1:24For example, here on this chart, we have
43. 1:26two zones. If we waited for price to
44. 1:28come to this lower zone, we would have
45. 1:30never gotten into the trade because
46. 1:32price came down to the strong zone, zone
47. 1:34one, and it went upwards from here. So,
48. 1:37how do we decipher which zones to
49. 1:39choose? The answer,
50. 1:43inducement. If you go on Google and
51. 1:45search the word inducement, you will
52. 1:47find the definition, a thing that
53. 1:49persuades or influences someone to do
54. 1:51something. If we find inducement on our
55. 1:53chart, it will raise the probability of
56. 1:55finding the strongest zone. The easiest
57. 1:57way to do that is by finding liquidity.
58. 1:59The simplest form of liquidity is just
59. 2:02equal highs or equal lows. Whenever
60. 2:04there's equal lows like this, there will
61. 2:06naturally be loads of stop- losses below
62. 2:08this level. The market is programmed to
63. 2:11take out these stop- losses and then
64. 2:12proceed to do the actual move and go up
65. 2:15afterwards. So, if we go to this
66. 2:16example, we have two demand zones. At
67. 2:18zone one, we see right before the strong
68. 2:21upwards move, price consolidated and
69. 2:23made equal highs and equal lows. Meaning
70. 2:26there's tons of resting liquidity below
71. 2:28this demand zone. So as price comes down
72. 2:30to this zone, lots of traders will enter
73. 2:32as they think this is a strong zone.
74. 2:35Then proceed to set their stop losses
75. 2:37below these lows. So oftent times price
76. 2:39will do a little upwards move from here,
77. 2:41but then we'll want to proceed to take
78. 2:43out liquidity. And where better to do
79. 2:45that other than these equal lows. So
80. 2:48price will end up breaking this
81. 2:49inducement zone and move to the real
82. 2:51zone, zone number two. But you may not
83. 2:53always be lucky enough to get a clear
84. 2:55example like this. Sometimes it'll be a
85. 2:58little bit more tricky to identify the
86. 3:00true zone. Another way to find the
87. 3:02strongest zone is by identifying breaks
88. 3:04of structure. So in this example, zone 2
89. 3:07had so much strength that it broke the
90. 3:09previous high. Meaning there was tons of
91. 3:11buying power from this demand zone to
92. 3:13give it strength to break the previous
93. 3:15high. So we can identify this as a
94. 3:18strong zone. But that would completely
95. 3:20change if we had a scenario like this.
96. 3:22In this scenario, zone 2 actually didn't
97. 3:25have enough strength to break the
98. 3:26structure of the previous high and
99. 3:28actually failed while doing so. While
100. 3:31zone one was the zone that actually had
101. 3:33the institutional backing, giving it the
102. 3:35power to break the previous high. So in
103. 3:37this example, despite zone one being the
104. 3:40higher demand zone, zone one is actually
105. 3:42the stronger zone and is the one we
106. 3:44would choose to enter a trade. The third
107. 3:46trick in finding the true zone is fair
108. 3:49value gaps. A fair value gap is simply
109. 3:51just a three candle formation where
110. 3:53price spikes up or down extremely fast
111. 3:55and is untested by any wicks. The fair
112. 3:58value gap is just the zone where price
113. 4:00is untested. So right here, price will
114. 4:03eventually want to test this zone again,
115. 4:05then move back up afterwards. So knowing
116. 4:07this, we can use it to our advantage.
117. 4:09For example, here we have two different
118. 4:11demand zones. So again, we're forced to
119. 4:13answer the age-old question. Which zone
120. 4:16do we choose? If we look closely, there
121. 4:18was a fair value gap formed right above
122. 4:20zone 2. And like I said before, price is
123. 4:23naturally attracted to fair value gaps
124. 4:26and we'll want to go to them. In order
125. 4:28to do that, it would have to break
126. 4:29through zone one. So we can instantly
127. 4:32remove the idea of zone one being a
128. 4:34strong zone as price will naturally want
129. 4:36to come to this fair value gap and in
130. 4:39order to do that it has to break through
131. 4:40zone one. So now we have crafted a
132. 4:43formula for finding powerful zones
133. 4:45finding inducement zones made with equal
134. 4:47highs and equal lows to generate
135. 4:49liquidity zones that have strength from
136. 4:51breaking structure and finding
137. 4:52inducement zones based off fair value
138. 4:54gaps. If we combine all of these tricks
139. 4:56we will raise the probability of finding
140. 4:58the best possible setups. So, let's put
141. 5:01all we've learned to the test and do a
142. 5:03reall life chart example. But before we
143. 5:05get into that, let me show you
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152. 5:27unlike most brokers where you have to
153. 5:29pay fees for every single trade you
154. 5:31take, I mean really sit down and think
155. 5:33about it. If you're taking hundreds of
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164. 5:52use my link. You're welcome. Now, this
165. 5:55strategy will work for all time frames,
166. 5:57but I personally like to use it for the
167. 5:591 hour or daily time frame as those
168. 6:01supply and demand zones tend to hold the
169. 6:03strongest. Here in this example, we have
170. 6:05a clear uptrend with price making higher
171. 6:07highs and higher lows. So, since we're
172. 6:09in an uptrend, we only look for areas of
173. 6:12demand. To find our areas of demand, we
174. 6:14need to find the start of moves with
175. 6:16strong impulses. So, there's an area of
176. 6:18demand here, here, and here. So, we now
177. 6:21have all of our potential demand zones,
178. 6:23but not all of them are valid. If you
179. 6:25were trading this chart, which one would
180. 6:27you choose? Would it be zone 1, 2, or
181. 6:30three? Now, right away, we can remove
182. 6:32zone one. The reason being is there's a
183. 6:34fair value gap right above zone 2. And
184. 6:37like I said before, price will naturally
185. 6:39want to come to this fair value gap. And
186. 6:41in order to do that, it'll have to break
187. 6:43through zone one. So, we can instantly
188. 6:46remove this as an option. That leaves us
189. 6:48with two zones to choose from. Now,
190. 6:49which one do you think we should trade
191. 6:51from? You may be thinking it's zone 3.
192. 6:53Considering what I just said, there's
193. 6:55also a fair value gap down here, meaning
194. 6:58price would have to break through zone 2
195. 7:00in order to get to that. But if we look
196. 7:01closely at our chart, something
197. 7:03interesting is happening. As you can
198. 7:05see, our previous high is marked out
199. 7:07right here. And if we look closely, zone
200. 7:093 didn't have the strength to break this
201. 7:11high. The zone that did end up breaking
202. 7:13this high was zone two, meaning zone two
203. 7:16is actually our stronger zone. We then
204. 7:19proceed to wait for price to come to the
205. 7:21zone. Enter as soon as it does. Put your
206. 7:23stop loss below the demand zone and set
207. 7:26your takerit at the recent high. Let the
208. 7:28trade play out. And zone two was indeed
209. 7:30our strongest zone. Here's another
210. 7:32example. Here we have the start of a
211. 7:34reversal to the downside. So this time
212. 7:36we'll look for short trades and areas of
213. 7:39supply. Now while looking at this chart,
214. 7:41I immediately see two areas of supply.
215. 7:44One right here and one right here. Which
216. 7:46one should we use? Well, both of these
217. 7:48zones broke the previous structure. So,
218. 7:51both of them passed that test. Zone two,
219. 7:53before creating its strong downwards
220. 7:55move made these equal highs. And like I
221. 7:58said before, whenever there's
222. 7:59consolidation or equal highs, that will
223. 8:02create liquidity above these equal highs
224. 8:04as traders will set their stop- losses
225. 8:07above them and price will naturally want
226. 8:09to take out these equal highs. Also,
227. 8:11there's a fair value gap above by zone
228. 8:14one. So that's a whole another reason on
229. 8:16why not to use zone 2. So we choose zone
230. 8:19one. We see what price does. It
231. 8:21hesitates at zone two because all these
232. 8:24traders think this is the correct zone.
233. 8:26But for the reasons I mentioned before,
234. 8:28we know it's an inducement zone. Price
235. 8:30then proceeds to break all these equal
236. 8:32highs, grab all of this liquidity. We
237. 8:35enter a short trade, set our stop loss
238. 8:37above the area of supply, set our
239. 8:39takerit at the lows, and get a beautiful
240. 8:41winning trade. Let's do one last final
241. 8:44example. Here we have a downtrend. Since
242. 8:46we're in a downtrend, we'll look for
243. 8:47areas of supply. Right? When I look at
244. 8:49this, I see an area of supply right
245. 8:51here, here, here, and here. So, we have
246. 8:54a total of four areas of supply. But
247. 8:56which one do we choose? All of them
248. 8:58created a break of structure. So, we're
249. 9:00good in that regard. When first looking
250. 9:02at this, I see something very
251. 9:04interesting. We see equal highs at this
252. 9:06area of supply. So we can instantly
253. 9:07remove zone one as price will want to
254. 9:10naturally take out this easy liquidity
255. 9:12at these equal highs. And in order to do
256. 9:14that, it has to break through zone one.
257. 9:16Zone two is an inducement zone. Lots of
258. 9:19traders will enter here thinking this is
259. 9:21the correct zone. But like I said
260. 9:23before, there's equal highs here. And
261. 9:25since this is an inducement zone, it'll
262. 9:27add even more liquidity. So we'll take
263. 9:29out zone 2. That leaves us with two
264. 9:31zones. Which one do you think it is? If
265. 9:34you guess zone 3, you would be
266. 9:35absolutely wrong as again there are
267. 9:38equal highs here creating natural
268. 9:40liquidity making zone 3 an inducement
269. 9:42zone. So now we know zone 4 is the real
270. 9:45zone. Let's see what price does. It
271. 9:47breaks through zone one instantly coming
272. 9:49to zone 2, the inducement zone,
273. 9:51hesitates, then proceeds to grab all the
274. 9:54liquidity, giving it fuel to head
275. 9:56higher. It then goes to zone 3, grabs
276. 9:58even more liquidity, then moves to the
277. 10:00real zone, zone 4. We enter a short
278. 10:03trade, set our stop loss above the
279. 10:05supply zone, set our take-profit at the
280. 10:07low, watch the trade play out, and we
281. 10:09get another winning trade. Liquidity
282. 10:11breaks a structure in fair value gaps.
283. 10:14Implement this in your trading and watch
284. 10:16your trading balance grow. Induce me.