How To Profile 4H Candles — Transcript

Full transcript

1. 0:05Yo guys, Fos is here. In today's video,
2. 0:07I'm going to talk about how I profile
3. 0:104hour candles the easy way. Before I
4. 0:12move on, I want to say I do not claim
5. 0:15any of these concepts in this video as
6. 0:17my own. This is just a video about how I
7. 0:20profile for hour candles to find high
8. 0:22probability trades myself every day. The
9. 0:25topics I'm going to talk about today are
10. 0:27key levels, frameworks, reversal,
11. 0:31continuations, candle types and
12. 0:34examples. At the end,
13. 0:37the key levels I'm using to profile four
14. 0:40hour candles are old highs and old lows,
15. 0:42where I can frame reversals or
16. 0:44continuations. Fair value gaps, this is
17. 0:47a great key level to frame easy
18. 0:49continuations from, and previous candle
19. 0:51highs and lows. These are mainly used to
20. 0:54actually profile the certain for our
21. 0:56candles the easy way.
22. 1:00The frameworks I'm using to profile four
23. 1:02candles are internal to external. This
24. 1:05is used for conturation trades after we
25. 1:08made a retracement into a fair value
26. 1:10gap. External to internal. I use this to
27. 1:14frame reversal from old highs and old
28. 1:16lows with internal fair value gaps as a
29. 1:19target.
30. 1:20And I use range high low to range low
31. 1:23high. We reverse from one side of the
32. 1:25range to target the other side. In this
33. 1:27case, we take range low and we target
34. 1:29the opposite range, range high.
35. 1:34So now I'm going over the reversal
36. 1:36candles. Personally I'm only trading the
37. 1:396 and 10 am candles. So this is where I
38. 1:43focus on. First of all we have the
39. 1:46internal to external movement where we
40. 1:47can see C1 2 am hit our relevant key
41. 1:50level but it's failing to reverse yet.
42. 1:53So we can expect 6 a.m. to take previous
43. 1:55candle low and form a reversal to expand
44. 1:59to the external high as a is 6 am.
45. 2:02expansion candle. Here we have 6 am
46. 2:06hitting our relevant key level, but it's
47. 2:07failing to reverse yet. So we can expect
48. 2:1010 am. To take previous candle candles
49. 2:12low and reverse and expand to the
50. 2:16external high. For external to internal
51. 2:19is the same. We have our old high here.
52. 2:23We can see 2 am. Trading 2D high but
53. 2:26failing to reverse yet. So we can expect
54. 2:286 am. to take previous candles high and
55. 2:31reverse to rebalance this internal
56. 2:33fairfil gap. Same for the 10 reversal
57. 2:36where we can see 6 amm c1 hitting our
58. 2:39relevant high and we see c2 10 amm
59. 2:42taking previous candles high and reverse
60. 2:46to balance this internal gap. And here
61. 2:49we have the range play where we can see
62. 2:52C1 2 am hit our relevant range low but
63. 2:56it's fading to reverse yet. So we can
64. 2:57expect the C2 6cm candle to take
65. 3:00previous eh candle low on 4 hour and
66. 3:04reverse into an expansion to target the
67. 3:06opposite of the range range high. Same
68. 3:09for the 10 a.m play, we can see 6 a.m C1
69. 3:11hitting our relevant range low and we
70. 3:15can see C2 10 candle it's taking
71. 3:18previous 6 eh AM candle low and then
72. 3:23expand to the opposite range range high
73. 3:25in this case with the 10 amm candle.
74. 3:30So now I'm going to talk about the
75. 3:31continuation candles to profile 4
76. 3:33hourour candles with the same frameworks
77. 3:36we have a internal to external movement
78. 3:38where we can see 2 am C2 candle is
79. 3:41taking previous candles low is failing
80. 3:44to actually make the expansion we expect
81. 3:46to the range high so we can expect a
82. 3:49C36M candle to expand to the external
83. 3:53range high if it qualifies for an
84. 3:54expansion candle so a little opposing
85. 3:58run to the downside wick and then expand
86. 4:01higher. Same for the 10 play C2 6 make
87. 4:06the reversal but is failing to expand
88. 4:08yet to the range high. So we can expect
89. 4:11C3 10 am. To make the expansion if it
90. 4:13qualifies with a small wick on the
91. 4:15bottom. Same for external to internal.
92. 4:19We have our range high old high here. We
93. 4:23can see C1 approaching
94. 4:25C2 making the reversal is failing to
95. 4:27fall through. So we can expect C3M
96. 4:31can in this case to target the value gap
97. 4:35to rebalance.
98. 4:37Same for the 10 amm play we have our old
99. 4:39high here where C1 is approaching the
100. 4:42high and C2 makes the reversal but it's
101. 4:44failing to fall through yet. So we can
102. 4:46expect C3 10 am. to fall through with a
103. 4:50small opposing run here to target the
104. 4:52favelling gap and rebalance this area
105. 4:55here. Same for the range play, we have
106. 4:58our range low. We can see C1 approaching
107. 5:00this level but it's not reversing yet.
108. 5:03While C2 2 am is making the reversal,
109. 5:07but we still have this open target here.
110. 5:09So we can expect C3 to make the
111. 5:11expansion higher if it qualifies with a
112. 5:13small wick and the small opposing run.
113. 5:17Same for the 10 play we can see C26
114. 5:20making the reversal here from this
115. 5:22relevant level range low. We can see C3
116. 5:2610 making the expansion. It qualifies
117. 5:28with a small wick. So it's an expansion
118. 5:30candle to target the range high here.
119. 5:36So now I will talk about the candle
120. 5:38types I'm trading
121. 5:40with first the C2 reversal where we can
122. 5:42see C2 is taking previous candle low and
123. 5:45high for this example and making a
124. 5:48reversal into an expansion. We have the
125. 5:50C2 closure where C2 is taking previous
126. 5:53candles low or high.
127. 5:56It's actually reversing as you can see
128. 5:58but it's failing to make the expansion
129. 6:01yet. So we can expect C3 to make the
130. 6:03expansion or a C3 continuation where C2
131. 6:08in both scenarios is not closing inside
132. 6:10previous candles range but we hit a
133. 6:12relevant key level and due to this large
134. 6:15wick here we can expect C3 to expand
135. 6:19away from this reversal candle and we do
136. 6:22not expect to take previous candles low
137. 6:25C2 low and high in this example and we
138. 6:28just expand away from the reversal
139. 6:30candle
140. 6:33Now I will go over some examples.
141. 6:36These are moves I actually traded inside
142. 6:38the market as well. We are starting on C
143. 6:42oil. We can clearly see price displacing
144. 6:45lower leaving fair gaps. We can mark up
145. 6:50previous daily range
146. 6:54where we can clearly see previous day
147. 6:57range making an expansion lower. So what
148. 7:00do we look for? We look for a price move
149. 7:03movement lower right into those lows for
150. 7:05example let's mark up those lows here.
151. 7:09So we can look for a internal to a
152. 7:12external price movement to this low and
153. 7:14to these lows here as well. So
154. 7:18current daily candle is expansion candel
155. 7:20as well. We have a small opposing wig
156. 7:23making a small move higher into this gap
157. 7:27here. So again
158. 7:30internal to external framework. What do
159. 7:32we look for? We look for our candle
160. 7:35profile right? So what is this candle
161. 7:38profile? This is a C2 reversal into an
162. 7:40expansion. Right? So we have 2 am
163. 7:43approaching this key level where
164. 7:466 is taking previous candle high and
165. 7:49making a reversal.
166. 7:51Even though this candle is making the
167. 7:53reversal, it's still qualifying for an
168. 7:55expansion since this is not a very large
169. 7:57wick. So this is actually a large wick
170. 8:01or this is a large wick, but this is
171. 8:03still a a decent wick to to trade an
172. 8:06expansion lower into the external low
173. 8:09from this internal gap. Right? So pretty
174. 8:11easy framework on where we use my daily
175. 8:14bias concept as well for my daily bias
176. 8:17video to now profile this to a 4-hour
177. 8:20price movement framework right so this
178. 8:22is basically the first example pretty
179. 8:24easy framework and the moves I trade are
180. 8:27very obvious on the daily and 4 hour as
181. 8:30well
182. 8:32so now we go to this RTY price movement
183. 8:35this is kind of a range play we can
184. 8:40prices ranging here and we see this 6 am
185. 8:44candle it's taking
186. 8:48this candle low here and it's closing
187. 8:49inside this candle so we have a range
188. 8:52low and we have a c2 closure to trade
189. 8:55die
190. 8:56c3 continuation right this is the 10 amm
191. 8:59candle so once again 6cm it's taking
192. 9:04previous candle low and this external
193. 9:07low of the range to trade
194. 9:11expion
195. 9:13is larger than normal
196. 9:17to trade this 10 expansion candle since
197. 9:20we have a small opposing run to trade
198. 9:22the expansion higher and once again
199. 9:24pretty easy framework this is previous
200. 9:26day low as well so we have a daily key
201. 9:28level paired up with the four hhour
202. 9:31profile and that's how you want to frame
203. 9:33those
204. 9:34four hourour candles right from the
205. 9:36daily to the 4 hourour
206. 9:39profilingasy
207. 9:42we go over example on nasdack where can
208. 9:46see we have a range once again with this
209. 9:49as range high
210. 9:51with this range low
211. 9:53this is actually the example where we
212. 9:55have a reversal candle where it fails to
213. 9:57close inside previous candle but what
214. 9:59did say we can still expect next candle
215. 10:02to be in expansion if it's not retracing
216. 10:04that deep if we have a small opposing
217. 10:07wick here we F is small opposing wick.
218. 10:09So this is actually
219. 10:13this continuation where C2 is hitting a
220. 10:15relevant key level the range low in this
221. 10:17example where it's making the reversal
222. 10:20with a large wick. So we can expect C3
223. 10:23as a continuation if it qualifies as an
224. 10:25expansion candle with a small opposing
225. 10:28run.
226. 10:30And since we already have this as a
227. 10:32reversal, we do not expect to price open
228. 10:34here to take the low again and then
229. 10:36reverse. That makes no sense. We can
230. 10:39expect a clear expansion higher if the
231. 10:43next candle is setting up for it. And
232. 10:44this is a decent wick. So we can expect
233. 10:47a expansion. But still we have those
234. 10:50highs here,
235. 10:51the range highs intact. So we can expect
236. 10:54the C4 in this case to make an expansion
237. 10:58tool right since we can clearly see the
238. 11:006cm candle has not hit any Ravent level
239. 11:03to reverse from after we make this
240. 11:06reversal here from previous day low as
241. 11:08well. So again we have a daily key level
242. 11:11into a four-hour profile reversal. In
243. 11:14this case we are not closing inside so
244. 11:16we can still anticipate this as a
245. 11:18reversal candle to trade the next
246. 11:19candles. This is a great candle and this
247. 11:22is a great candle to and we can clearly
248. 11:24see a very nice expansion higher to the
249. 11:26highs.
250. 11:28So these were basically the three
251. 11:31examples I had very clear examples where
252. 11:33we use range low and high or internal to
253. 11:36external. Those are my main um
254. 11:39frameworks I use.
255. 11:42You will see this a lot in the market
256. 11:44and it's very easy if you have a daily
257. 11:47bias.
258. 11:49So make sure to watch my daily bias
259. 11:51video as well if you wan to know how to
260. 11:53actually frame a clear daily bias the
261. 11:55easy way. And I think this is a great
262. 11:58follow-up video how to actually frame a
263. 12:02for our profile right after we make a
264. 12:05daily buy.
265. 12:06I hope you enjoy this video and I will
266. 12:08see you all in the next