How To Frame A Daily Bias — Transcript

Full transcript

1. 0:05Yo guys, Roesious here. In today's
2. 0:07video, I'm going to talk about how I
3. 0:09frame my daily bias. Before I move on
4. 0:11with the video, I want to say that I do
5. 0:13not claim any of these concepts I'm
6. 0:15sharing in this video. This video is
7. 0:17just about how I approach the market day
8. 0:20by day and how I use these concepts. So
9. 0:23the topics I'm going to talk about are
10. 0:26alignment, key levels, candle types,
11. 0:28candle two, candle three and four,
12. 0:31confirmations, and I will show some uh
13. 0:34little examples.
14. 0:36So let's start with alignment.
15. 0:39The alignment I'm using um for the
16. 0:42higher time frame and to set a buy is
17. 0:44pretty simple. Um, of course it's
18. 0:46fractal, but I'm using the daily time
19. 0:49frame to 4our swing formations and um,
20. 0:52confirmations the most of the time. But
21. 0:54you can also use the monthly time frame
22. 0:56into a weekly, the weekly into a daily,
23. 0:59and the daily into a 4 hour. But um, the
24. 1:03weekly to daily and the daily to 4our
25. 1:05are the ones I'm um, using the most of
26. 1:07the time. So, I think this is pretty
27. 1:08straightforward and um of course it's
28. 1:11fractal.
29. 1:17The key levels I'm using to create my
30. 1:19daily bias are old highs and lows like a
31. 1:22swing high uh formation here, a swing
32. 1:24high low formation here. This is fractal
33. 1:27of course. So, if you use a monthly um
34. 1:30swing high or swing low, that's fine
35. 1:32too. If you use a weekly one, it's fine
36. 1:34of course. And I'm using the weekly and
37. 1:37the 4hour the most to frame my daily
38. 1:39bias. Same for fair value gaps. I think
39. 1:42this is pretty straightforward and
40. 1:44simple to use and to spot them on the
41. 1:47charts. Um and again it's fractal. You
42. 1:50can use monthly gaps into a weekly swing
43. 1:52formation. You can use weekly gaps into
44. 1:54a daily formation and so on. So I think
45. 1:57this is pretty straightforward um to
46. 1:59what levels I'm using to create my daily
47. 2:01bias.
48. 2:07So now let's go over to the candle types
49. 2:09I'm using in my trading as well. I'm
50. 2:12using reversal and continu continuation
51. 2:14candles. For a reversal candle, I want
52. 2:16to see price closing inside previous day
53. 2:19range paired up with a higher time frame
54. 2:21key level. And we use the alignment we
55. 2:24discussed earlier. Like we have a weekly
56. 2:26key level, we use a daily swing
57. 2:28formation. We have a daily key level, we
58. 2:30can use a 4hour swing formation. Um, and
59. 2:34we are using continuation trades as
60. 2:36well. If we can frame a higher time
61. 2:38frame key level like a monthly low, we
62. 2:41want to see price continue lower and
63. 2:44price closing beyond previous week low
64. 2:48and um trading aggressive lower like
65. 2:51this is a good signature to trade
66. 2:53continuation candle on the next week to
67. 2:55the draw liquidity. Of course, both
68. 2:58scenarios here are paired up with higher
69. 3:00time frame key levels using the
70. 3:02alignment I discussed earlier.
71. 3:09So now let's go over to the first candle
72. 3:11and this is candle 2. This is a reversal
73. 3:14candle where we hit a relevant level and
74. 3:17this is has to do with alignment like I
75. 3:20said earlier. For example, we have a
76. 3:22weekly relevant level here like a swing
77. 3:24low. We want to form a daily swing
78. 3:26formation and
79. 3:29um we want to see price actually reverse
80. 3:30and close back inside the range. We can
81. 3:33trade candle 2 as a reversal candle but
82. 3:36we do not expect to um see this candle
83. 3:39reverse and expand all the way higher.
84. 3:41So therefore we will target for example
85. 3:44the daily open or a relevant lower time
86. 3:48frame swing high. We do not expect um
87. 3:50this reversal candle to deliver the
88. 3:53price movement you want to see on the
89. 3:54higher time frame as well. So this is
90. 3:58basically the same for bears as well. We
91. 4:00have a key level a closure back inside
92. 4:02the range and we want to see the next
93. 4:04candles continue to um trade away from
94. 4:06the higher time frame level and again to
95. 4:09trade the C2 candle. We want to use some
96. 4:12um confirmations. We are going to talk
97. 4:14about this later to actually form a true
98. 4:17reversal inside this C2 candle.
99. 4:26So now I'm going to talk about candle 3
100. 4:28and four. This is actually a
101. 4:30continuation of um the C2 candle we
102. 4:34discussed earlier. For example, we have
103. 4:36a weekly relevant level here. We want to
104. 4:38form a daily swing formation. We want to
105. 4:41see um C2 candle close back inside the
106. 4:45range and C3 and C4 expand all the way
107. 4:47higher to trade those continuation
108. 4:51trades. We do not want to see um the
109. 4:52daily candle form a large wick. So for
110. 4:55example, this C3 should not retrace all
111. 4:57the way down um near this low put in
112. 5:01here and we should just form a small
113. 5:03opposing wick and expand higher. Same
114. 5:06for the C4 candle. If the C3 candle did
115. 5:09not hit any relevant level to reverse
116. 5:11from or any higher time frame level, we
117. 5:13do expect C4 to continue to that level
118. 5:16as well. Same for um bears. We have a
119. 5:20relevant level C2 closing back inside
120. 5:22the range. There's no need for price to
121. 5:25continue higher. Since we already
122. 5:26reverse and you want to see C3, C4
123. 5:29continue the movement um C2 started um
124. 5:33to the relevant level we want to trade
125. 5:35to. And if C3 did not um trade into any
126. 5:38relevant level to reverse from, we do
127. 5:41expect C4 to continue to that level we
128. 5:45have in mind. So here we want to also
129. 5:47see um C3 open up and not retrace that
130. 5:50deep near this high and just continue.
131. 5:53Same for the C4 level as well to
132. 5:56continue to the drawn liquidity.
133. 6:04So now let's talk about the
134. 6:05confirmations I'm using to frame the C2
135. 6:08and the continuation candles. Um this is
136. 6:10one of the confirmations I use and this
137. 6:13is the one stage crack I use. So it's
138. 6:15just a regular SMT where one takes out
139. 6:18the relevant high. Set 2 is doing the
140. 6:21same when asset 3 is failing to take out
141. 6:24the high but we all expand away from the
142. 6:26SMD formation. That's very important. um
143. 6:30when we want to confirm an SMT, we want
144. 6:32to see all the S's expand away from the
145. 6:35formation. So this is basically an SMT
146. 6:37by using um swing highs and lows. But we
147. 6:40can also use SMT um based on previous
148. 6:44candles highs and lows. So consecutive
149. 6:46candles, right? So here we have asset
150. 6:49one taking out this candle's high when
151. 6:52asset 2 is doing the same while asset 3
152. 6:55is not taking out this high. But we all
153. 6:58take out the relevant swing. Only thing
154. 7:00is asset 3 is doing this way earlier and
155. 7:03making a lower high here while making um
156. 7:08an higher high on asset one and two.
157. 7:10This is basically another form of crack
158. 7:13we are using here. So this is the swing
159. 7:15cracking correlation and this is the
160. 7:16consecutive or
161. 7:19u previous candle high um cracking
162. 7:22correlation. Right? So now I'm going
163. 7:24over to the second one. This is a
164. 7:25two-stage crack. is basically very much
165. 7:28the same as the one stage crack. But we
166. 7:30can identify strength switches. For
167. 7:32example, here we have on asset one, two
168. 7:34and three all this relevant high. When
169. 7:37asset one and three are taking out the
170. 7:39high when asset 2 is fading to we form a
171. 7:44strength switch here. When asset one um
172. 7:47makes a lower high following um after
173. 7:51the higher high, right? So we have
174. 7:52higher high into a lower high. Same for
175. 7:55three.
176. 7:56while asset 2 is making a higher high.
177. 7:59So this identifies that asset one and
178. 8:01three are flipping strength and are
179. 8:03becoming weaker and the um these assets
180. 8:06become the most favorable to short in
181. 8:08this example. And of course it's um just
182. 8:10the other way around for a bullish one
183. 8:14and of course we have again the
184. 8:16consecutive or previous candles um SMT
185. 8:18as well. So here we can see all the
186. 8:21assets are taking out the swing high and
187. 8:23then we can start for uh to look for a
188. 8:26consecutive candle SMT on the high while
189. 8:30uh we can see asset one and two are
190. 8:32basically the same when asset 3 is a
191. 8:35little bit different. So in this
192. 8:37example, asset one and two are the most
193. 8:39favorable to short away from this um
194. 8:42swing high here since they are flipping
195. 8:44strength. And as a tree um is becoming a
196. 8:48little bit stronger, but it's still
197. 8:50weak. And this is a very good example
198. 8:52where you can see um a two-stage SMT
199. 8:55formed um by previous candles. And we
200. 8:58can see in both examples all assets are
201. 9:01expanding away from the SMT. And that's
202. 9:04that is how you can confirm through
203. 9:06SMTS. Um this is basically fractal. So
204. 9:09you can use this on lower time frames as
205. 9:11well. So now let's go over to the last
206. 9:14confirmation I'm using um to confirm uh
207. 9:18the high time frame candles. So this is
208. 9:20basically um all the assets are taking
209. 9:23out the relevant high but we uh identify
210. 9:26a strength or weakness due to candle
211. 9:29closures. Here we can see um asset one
212. 9:32and two are closing bullish when taking
213. 9:34out the high where um S3 is closing
214. 9:39bearish when S3 is initial stronger.
215. 9:41Here you can see it expanding higher on
216. 9:45S3 closing near this high when S2 and uh
217. 9:49one are um a little bit further away and
218. 9:53you can see S3 flipping strength by
219. 9:56being um stronger in the first place and
220. 9:59then we are flipping strength and we can
221. 10:02identify this due to this candle
222. 10:04closure. So asset one two are closing
223. 10:07bullish here and S3 is closing bearish.
224. 10:10So this is actually the last example I'm
225. 10:12using for confirmations and form true
226. 10:15reversals on the C2. And of course this
227. 10:18a fractal. So you can um apply this to a
228. 10:204hour candle as well to for example um
229. 10:23form a low of the day or high of the
230. 10:25day. And you can use this on the daily
231. 10:27to form a high or low of the week.
232. 10:35Now I'm going over two examples with u
233. 10:38both being moves I actually traded as
234. 10:40well. First one is RTY. We have a
235. 10:44alignment of monthly key level into um
236. 10:47looking for a weekly swing formation.
237. 10:49Right. So um this monthly f value gap um
238. 10:53caught my eye. So what I'm looking for
239. 10:55on um the aligned time frame is a swing
240. 10:58formation like we get here. We can see
241. 11:01this week hitting the relevant level
242. 11:03here and closing inside this low and
243. 11:06actually inside previous week low marks
244. 11:09up being a C2 candle. Looking for a C3
245. 11:13expansion higher. What do we want to
246. 11:15look for inside this candle to expand
247. 11:17higher? We do not want to see this week
248. 11:21open and trade all the way near this low
249. 11:23here. We want to see it um make a small
250. 11:26opposing run and then expand higher. We
251. 11:29can actually fractal fractalize this
252. 11:31move as well into the daily
253. 11:35since we have our higher time frame key
254. 11:37level. We can see we form a daily swing
255. 11:39formation here as well by trading
256. 11:42higher. We have our CISD here. And we
257. 11:45can clearly see price
258. 11:48closing
259. 11:50through the highs. Right? Like I said in
260. 11:53my slides, we can see price is closing
261. 11:55um actually through the previous candles
262. 11:58high here marks up like this.
263. 12:04So it's pretty bullish and we can
264. 12:06clearly frame continuation trades here
265. 12:08by seeing all those candles closing um
266. 12:12through previous days highs making
267. 12:14little opposing rundown little opposing
268. 12:16rundown. Same for this one into relevant
269. 12:19highs.
270. 12:21this weekly relevant high. So we can all
271. 12:23fractalize it down from the monthly
272. 12:25making a weekly swing formation into the
273. 12:28daily making a swing formation as well
274. 12:31with uh with this SSC2 candle making a
275. 12:34CISD here trading a continuation since
276. 12:36we can clearly see price is willing to
277. 12:39go higher by this um these daily
278. 12:42closures here through previous day high
279. 12:44and closing way beyond that as well. So
280. 12:47this is basically the short first
281. 12:50example by making a top down from
282. 12:52monthly to weekly to daily fractal as
283. 12:54well by just only looking at candle
284. 12:56closures uh around previous candles
285. 12:59highs and lows for reversals and these
286. 13:02ones inside here for continuations.
287. 13:05Right? So now let's go over to the
288. 13:07second example. This one is on the
289. 13:08NASDAQ where we have our weekly relevant
290. 13:12swing here by um with our aligned time
291. 13:15frame. We want to look for the daily to
292. 13:17form a swing formation down here. So
293. 13:20let's drop to the daily time frame
294. 13:27like this. We actually form our swing
295. 13:29formation down here by this candle
296. 13:32trading all the way down hitting the
297. 13:33relevant level by this candle making a
298. 13:36C2 closure by trading through the low
299. 13:39and closing back inside the range. Then
300. 13:41we can see this candle being a
301. 13:43continuation candle. So on this day we
302. 13:45can look for continuations.
303. 13:48Same for all the other days here. All
304. 13:51closing through the highs. We can look
305. 13:52for continuations
306. 13:54um to trade higher. And we did actually
307. 13:57had an SMT
308. 14:00on the daily here as well. And like I
309. 14:02said in
310. 14:04the video, how do we qualify an SMT? By
311. 14:07all assets trading away from it. We can
312. 14:10see NASDAQ taking the low, making a
313. 14:12swing formation. And at the same time,
314. 14:17YM is not taking the low, but it's also
315. 14:19making a swing formation here and making
316. 14:21a CISD here.
317. 14:24So this is basically how I do my um
318. 14:27analysis on the higher time frame into
319. 14:30the aligned time frame looking for um
320. 14:32confirmations and we qualify the
321. 14:36reversals here for example on this low
322. 14:38with an SMT uh one stage two stage or a
323. 14:41PSP like I explained in the video and
324. 14:43then we want to look for continuation
325. 14:45trades on the daily time frame as well
326. 14:47by seeing little opposing run runs down
327. 14:50on the daily and then trading higher
328. 14:53working on the next video already. So,
329. 14:55I'm likely going to drop this next week
330. 14:57as well. And I hope to see you all um in
331. 15:01that. Right. Peace.