How To Use 1H/30M Candles — Transcript

Full transcript

1. 0:05Yo guys, Roes here. In today's video,
2. 0:07I'm going to talk about how I use the 1
3. 0:09hour and 30 minute candles. By the end
4. 0:12of the video, you will exactly know how
5. 0:14to trade reversals and continuations
6. 0:16without getting lost in the market.
7. 0:18Before I move on, I want to say I do not
8. 0:20claim any of these concepts as my own.
9. 0:22I'm just trading this day by day. The
10. 0:25topics I'm going to talk about today are
11. 0:27the key levels I'm using, the time frame
12. 0:30alignment, we are going to talk about
13. 0:32reversal and continuations, about the
14. 0:34confirmations, how to make this
15. 0:37mechanical, and great examples at the
16. 0:39end of the video.
17. 0:43The key levels I'm using on the 1 hour
18. 0:45and 30 minute are old highs and lows to
19. 0:48frame reversals and continuations, fair
20. 0:50value gaps to trade continuations from
21. 0:53the gaps and previous candles highs and
22. 0:55lows to frame the C2C3 candles and so
23. 0:58on. It would be nice if you have some
24. 1:00basic knowledge about these concepts.
25. 1:05The alignment I'm using to trade the 1
26. 1:07hour and 30 minute candles is starting
27. 1:09on the daily where I want to be in a
28. 1:11daily expansion candle and an expansion
29. 1:13candle is qualified with a small wick on
30. 1:16the opposite side you want to trade. So
31. 1:18if you want to trade longs, we want to
32. 1:19see a small wick at the bottom. If you
33. 1:22want to trade shorts, we want to see a
34. 1:23small wick on the top. We want to be in
35. 1:25a 4hour expansion candle as well with
36. 1:28the same qualifications as on the daily
37. 1:30with a small wick. And from there, we
38. 1:32want to be in a 1 hour or 30 minute
39. 1:35expansion candle as well. For me, the 1
40. 1:38hour and 30 minute candles are exactly
41. 1:40the same. So, it doesn't matter which
42. 1:42one I use to create my narrative on the
43. 1:441 hour and 30 minute.
44. 1:48So, how do we trade the reversal on the
45. 1:511 hour and 30 minute? This is starting
46. 1:53again on the daily where we want to be
47. 1:55in a daily expansion candle inside this
48. 1:59wick or at the bottom part of this daily
49. 2:01candle. We want to f find a 4hour
50. 2:04expansion candle as well to trade this
51. 2:06expansion. And it's the same for the
52. 2:084hour to 1 hour and 30 minute this
53. 2:11formation for an reversal. We want to
54. 2:13see this form around the wick or around
55. 2:16the open around the bottom part of this
56. 2:19potential for our expansion candle. Same
57. 2:22for bearish and shorts. We want to see a
58. 2:25small wick at the top for both candles.
59. 2:28We want to be in a daily expansion
60. 2:29candle lower expansion candle lower on
61. 2:32the 4our where this 4hour expansion
62. 2:35candle should form around the wick or
63. 2:38the open or the top part of this daily
64. 2:40candle. And we want to see this reversal
65. 2:43on the 1 hour and 30 minute form around
66. 2:46the open the wick or the top part of
67. 2:49this 4hour candle to trade the actual
68. 2:52reversal.
69. 2:55So how do we actually engage in
70. 2:57continuation trades? Once again on the
71. 3:00higher time frame you want to be in an
72. 3:01expansion candle on the daily and 4hour.
73. 3:04Same for shorts. We want to see a
74. 3:07reversal form in this 4hour wick around
75. 3:10the open or around the bottom part of
76. 3:12this expansion. So how do we trade a
77. 3:15continuation? Then after we get the
78. 3:17reversal, we have C1, C2 from the
79. 3:20reversal and then C3 expansion, we can
80. 3:24get a C4, C5, C6 expansion candle, but
81. 3:28in my opinion is way more high
82. 3:30probability to wait for a new fractal.
83. 3:32So we want to see a new C1 and C2 form
84. 3:36with a C2 closure to trade an expansion
85. 3:39again after uh the C2 closure with this
86. 3:42as the invalidation. This can go along
87. 3:44with a gap as well.
88. 3:47Same for shorts. We want to see a
89. 3:49reversal form with a continuation within
90. 3:51the triad. Then we can wait for a new
91. 3:54C1C2 formation to form to trade the C2
92. 3:58or C3 continuation. Right? This can go
93. 4:00within a gap and we wait for this new
94. 4:04formation to form. Even if we print a
95. 4:06C3, C4, C5, we can still wait for a new
96. 4:10C2C3 formation to form to trade the
97. 4:13continuation. By this you will get um
98. 4:16way high probability trades within the
99. 4:18continuation since after this first
100. 4:20expansion down or up price can
101. 4:23consolidate and then it's way more more
102. 4:25high probability to wait for a new
103. 4:27fractal to continue higher since lower
104. 4:30time frame can consolidate a bit.
105. 4:35Now I will go over the confirmations I'm
106. 4:37using to trade any C2 candle on any time
107. 4:40frame. This can be applied to the daily,
108. 4:434 hour or in this case the 1 hour and 30
109. 4:46minute to confirm the high or low of the
110. 4:48day to confirm the reversal. So the
111. 4:51first confirmation is the one stage
112. 4:53crack where we can see asset one is
113. 4:55taking out this old high and reversing
114. 4:58when asset 2 is doing the same taking
115. 5:00out this old high and reversing forming
116. 5:03this C2 closure as well on both assets.
117. 5:06And we can see S3 not taking out the old
118. 5:09high, but it is still reversing. And
119. 5:11that's what you want to see in a
120. 5:12cracking correlation where all the
121. 5:14assets are expanding away from the SMT.
122. 5:19So this one is with old highs and lows,
123. 5:21but we can see it um at consecutive
124. 5:24candles as well where we can see this C2
125. 5:27candle is taking out previous candles
126. 5:29high. Same for S2 but S3 is not taking
127. 5:33out this candle's high here but we can
128. 5:36see all SSR taking out this old high but
129. 5:39then we have to look for a SMT at the
130. 5:42consecutive candles. So the second
131. 5:44confirmation is the two-stage crack
132. 5:46where we can see asset one is taking out
133. 5:49this old high and forming a strength
134. 5:51switch. So it is initially stronger by
135. 5:53taking out this high but then it's
136. 5:54flipping weaker. Asset three is doing
137. 5:57the same. It's taking out this old high
138. 5:59and then it's flipping weaker here. And
139. 6:02asset 2 is not taking out this old high,
140. 6:05but it's making a higher high and still
141. 6:08taking out this old high. So, the best
142. 6:10asset here to trade is the asset one and
143. 6:13the asset tree since it's flipping its
144. 6:15strength to the downside. So, this one
145. 6:17is with old highs and lows. So we have
146. 6:20the consecutive candle SMT again for the
147. 6:22Tuesday's crack where we can see asset
148. 6:25one two and three are all taking out
149. 6:27this old high asset one C2 is taking our
150. 6:31previous candles high and making a lower
151. 6:33high then so we have this SMT same for
152. 6:37S2
153. 6:38but you can see S3 is different it's
154. 6:41making a lower high here with this
155. 6:43candle and then with the last candle is
156. 6:46making a higher high so the best assets
157. 6:48to trade here in my opinion are asset
158. 6:51one and two since they are initially
159. 6:54stronger but they are flipping its
160. 6:55strength to being relative weak against
161. 6:58the other asset and the last
162. 7:00confirmation I'm using to actually frame
163. 7:02the high or low of the day is the PSP
164. 7:05formation we can all see asset one two
165. 7:09and three all taking out this old high
166. 7:11but we can see um the strength and
167. 7:14weakness based on the candle closures
168. 7:16where asset 3 is closing like a bearish
169. 7:19candle. So it's indicating relative
170. 7:21weakness inside this triad where we can
171. 7:24see asset one and two making a bullish
172. 7:26closure when we take the high. So the
173. 7:29best asset to trade here is the S3 since
174. 7:32we all take out this high. So we have no
175. 7:34SMT there but we can see S3 is closing
176. 7:38weaker. So this is the weakest asset to
177. 7:40short.
178. 7:43So how do I make this approach as
179. 7:45mechanical as possible? To trade a C2
180. 7:48candle, one of the cracks is required.
181. 7:51So on a daily, we can trade a C2. If
182. 7:54there's a crack, we can trade the C3
183. 7:56continuation. Same for the 4hour and
184. 7:58same for the 1 hour and 30 minute. But
185. 8:00the thing is I do not need to be in
186. 8:02every on every time frame in the same C2
187. 8:06or C3 candle. So I can trade a daily C3,
188. 8:09a 4hour C2, and then a 1 hour or 30
189. 8:13minute C3 again. So to make this
190. 8:15mechanical, I require a C2 or C3 candle
191. 8:18on the daily, a 4hour C2 or C3. And for
192. 8:23the 1 hour and 30 minute, I do require a
193. 8:26C2 or a C3 once again, but the variance
194. 8:30are different, right? Same for bearish.
195. 8:33I can trade a daily C2, then a 4hour C3,
196. 8:37and then a 1 hour or 30 minute C2 once
197. 8:39again where the C2 candles are confirmed
198. 8:42with one of the cracks I explained.
199. 8:48So now I will go over a few examples
200. 8:50about moves I actually traded with this
201. 8:53logic. Starting with the first one on
202. 8:55RTY, starting on the daily, what can we
203. 8:58see?
204. 9:00We can see Wednesday is taking previous
205. 9:03day low and starting to reverse. We have
206. 9:05a small wick. This is qualifying for an
207. 9:08expansion candle. So overall bias is
208. 9:11very bullish. So we want to look for
209. 9:13longs and this is actually very great to
210. 9:15look for. I think we have an SMT as well
211. 9:19with YM.
212. 9:21Yeah, we have SMT here on the lows. So
213. 9:23we have our C2 candle on RTY on the
214. 9:27daily. We have our correct to confirm
215. 9:29this candle. Then we can drop to the 4
216. 9:32hour. We have a clear target here to
217. 9:35target equal relative equal highs. A
218. 9:37range play for the people that watch my
219. 9:394hour um profiling video range play
220. 9:44range low to high. So here here on the
221. 9:464our what are we looking for? We want to
222. 9:49look for an expansion candle once again.
223. 9:52So this one is actually the C2 reversal
224. 9:54candle. We are taking
225. 9:57the low here, the range low and we start
226. 9:59to reverse. YM is making a reversal
227. 10:03signature here as well, forming the SMT
228. 10:05here.
229. 10:07So, what can we do? We can trade
230. 10:09potentially this candle since this is
231. 10:11not a very long wick. But what's easier
232. 10:14to do? Wait for the 10 a.m. candle to
233. 10:16open. Wait for the small wick to qualify
234. 10:18the 10 a.m. candle
235. 10:21to trade the 10 a.m. 4hour candle
236. 10:24higher. So from here we have the daily
237. 10:26expansion candle with the small wick.
238. 10:28Once again small wick we can trade the
239. 10:32reversal because we have SMT here. We
240. 10:34wait for the new 10M 4hour candle to
241. 10:37open. We have a small wick. So from
242. 10:39there we want to go to the 1 hour or 30
243. 10:41minute to look for an expansion candle
244. 10:44once again. Right. So what can we see
245. 10:46here? We can see this 1 hour is closing
246. 10:48like a C2 candle for higher prices since
247. 10:52the narrative is higher prices. So this
248. 10:54closure I do not care about this at all.
249. 10:57The overall narrative is higher prices
250. 10:59to this range high.
251. 11:02So we can see 10 a.m. open here with a
252. 11:05small wick on the opposite side. So, we
253. 11:07have the daily expansion candle aligned,
254. 11:09the 4hour 10 a.m. expansion candle
255. 11:11aligned, and we have the 1 hour 10 a.m.
256. 11:15expansion candle aligned. So, we can
257. 11:16look for entries around the 10 a.m.
258. 11:19open. So, this is basically the first
259. 11:21example with the first fractal. I think
260. 11:23you can narrow this down to the um 30
261. 11:26minute as well.
262. 11:28It's not that clean on the 30 minute,
263. 11:30but the 1 hour is looking very clean. We
264. 11:31have a reversal candle here and we can
265. 11:34look for the expansion candle once we
266. 11:35closed above this order block. But first
267. 11:38great example. So the second example is
268. 11:41on RTY once again and this is actually
269. 11:44after the move we just outlined. So we
270. 11:47have the same things applied here. We
271. 11:50are taking this high. We have SMT here
272. 11:52on the daily low
273. 11:55and we have
274. 11:58the C2 closure into an expansion here.
275. 12:00So we actually trading a daily C3 here.
276. 12:03So for a C3 we do not have any SMT or we
277. 12:06do not need SMT since we already have
278. 12:08SMT here on the C2. So we can trade this
279. 12:10as a daily continuation since we are
280. 12:12clearly closing strong and failing to
281. 12:15manipulate this relevant high. This is
282. 12:17where face of price comes in play. So
283. 12:19from the daily we go to the
284. 12:224our. So what do we want to look for? We
285. 12:24want to look for a shallow retracement
286. 12:27down right? We want to we do not want to
287. 12:29see a deep retracement to form the
288. 12:31continuation. We have a clear gap here.
289. 12:34So we have the 4hour profile of a
290. 12:36internal to external price movement here
291. 12:38to continue higher. So a lot of people
292. 12:42will think we do not have any clear
293. 12:44swing formation here. But we do actually
294. 12:46have SMT here
295. 12:49on this low with our correlated asset to
296. 12:52trade YM to trade RTY and that's YM
297. 12:56where we can see 10M is taking the 6M
298. 12:58low where this is not happening here on
299. 13:02RTY. So we have an SMT. So technically
300. 13:05this is a C2 candle on RTY since YM took
301. 13:09this low, right? So we can look for
302. 13:11trades inside this candle if we have a 1
303. 13:14hour swing formation. So we go for the
304. 13:16to from the daily C3 to the 4hour swing
305. 13:19formation to the 1 hour swing formation.
306. 13:22And what can we see? We can see us clear
307. 13:25clearly form a swing formation here
308. 13:30like this only 1 hour.
309. 13:33What do we look for? We look for a 10:00
310. 13:35a.m. small wick. We get that we have a
311. 13:37very small wick here to trade the
312. 13:39expansion inside this swing formation.
313. 13:42We have our SMT to confirm this swing
314. 13:44formation. So we have the 4hour aligned
315. 13:46here with a expansion candle. The daily
316. 13:49not that long of a wick to trade the
317. 13:51expansion higher. So daily 4hour into
318. 13:55the 1 hour is aligned here once again to
319. 13:57trade inside this candle for an
320. 14:00expansion. So this is actually the
321. 14:02second example. Now I will go over to
322. 14:05the third example on ENQ. This one is
323. 14:08coupled with ES since um that's cleaner
324. 14:11to outline like that. We can clearly see
325. 14:14in Q is not taking out this low and
326. 14:17reversing. So we have an SMT here on the
327. 14:19daily. We can see ES is taking out that
328. 14:22low. We put in the SMT and is reversing
329. 14:25too. So what can we look for? We can
330. 14:27look for Friday to trade to this swing
331. 14:29high and to this high on the try it and
332. 14:32Q ESYM. If we have an expansion candle
333. 14:36on the daily, assuming this is the
334. 14:38reversal, we can look for a small wick
335. 14:41on the daily and we get that. So from
336. 14:43there we have our daily bias created to
337. 14:46trade towards this high. So then we look
338. 14:48for the 4our what's the 4hour saying?
339. 14:53So we already have our daily C3 candle.
340. 14:56So we do not need any SMT on the daily.
341. 14:59But we can look for an SMT on the 4
342. 15:01hour, right?
343. 15:04So this is the 4hour and what can we
344. 15:06already see? This is the 6 a.m. candle
345. 15:09here. This candle 6 a.m. open. What is
346. 15:12this candle doing on ENQ?
347. 15:15Initially ENQ is stronger here since
348. 15:17it's making a higher low on the daily.
349. 15:19But then it's flipping weaker here. We
350. 15:22have the crack and we have the
351. 15:25C2 reversal candle here on the daily to
352. 15:27trade the expansion higher towards this
353. 15:30high from this order block as key level.
354. 15:33Same for ES. It's initially weaker and
355. 15:36it's flipping strength here and is
356. 15:39looking for continuation from this order
357. 15:42block higher. Right? We can see 2M
358. 15:44closed above 6M is continuing higher
359. 15:46with the daily logic there. So from
360. 15:49there, what are we looking for on the
361. 15:51lower time frame on the 1 hour and 30
362. 15:53minutes? Since we have the daily C3
363. 15:54candle, we have the 4hour C2 with the
364. 15:58SMT here. Then we can look for a 1 hour
365. 16:02swing formation, right? And what can we
366. 16:04see here?
367. 16:08We form a swing formation down here
368. 16:12like this
369. 16:15on ES as well.
370. 16:20or it made equal low here equal lows but
371. 16:23it doesn't matter since we have then
372. 16:24technically an SMT here but what do we
373. 16:27look for here again if I'm picking here
374. 16:30YM we can see YM is forming the low of
375. 16:34the day on
376. 16:377 a.m. and the 8 a.m. candle is starting
377. 16:40to expand higher. We can see the ATM
378. 16:42candle on and Q is taking its low and
379. 16:45starting to expand higher. So we once
380. 16:47again have the cracking correlation here
381. 16:49to trade this reversal here.
382. 16:52So if this C2M candlestick reversal, we
383. 16:55can look for a continuation during the
384. 16:579:00 a.m. SDC3. But it's already
385. 17:00possible to trade this C2 since we have
386. 17:02the SMT here, right? So this alignment
387. 17:07pretty clean once again on the daily.
388. 17:09We'll go over it once again. We have the
389. 17:12C2 reversal here. Since we have the SMT
390. 17:14with ES, we can look for a expansion
391. 17:16towards this high within the C3. If we
392. 17:19get a small wick, we get that. Then we
393. 17:22look for a move on the 4 hour. Again,
394. 17:26we have the SMT here on the low. This
395. 17:29being a C2, we do not have that long of
396. 17:31a wick. So, we can trade this expansion
397. 17:33during the 6 a.m. candle towards the
398. 17:35drawn liquidity and we look for a swing
399. 17:38formation on the 1 hour or 30 minute and
400. 17:41we get that down here with the SMT. So,
401. 17:43this is the third example and now I will
402. 17:46go over the last example.
403. 17:49This one is on oil. We can look for a
404. 17:52continuation play off of this gap here.
405. 17:55We actually already formed a swing
406. 17:57formation. So technically by trading
407. 18:00this daily candle we are in a C3 4 we
408. 18:03are in C5. But what do we look for then?
409. 18:05We look for an SMT like this. We can see
410. 18:10HO Monday candle is taking Friday's low
411. 18:13and it's putting in an SMT here.
412. 18:16So we have the SMT to trade this as an
413. 18:18expansion candle towards this high and
414. 18:21this high. Let me mark this up.
415. 18:26So we have the reversal here. We have
416. 18:28the continuation here on the daily. We
417. 18:30have the relative small wick to trade
418. 18:32the expansion towards this high. Then we
419. 18:34look for the 4hour right
420. 18:38towards this high. Let me remove this
421. 18:40one. So from there we are forming a
422. 18:45swing formation here on the 4hour. We
423. 18:48have the SMT here with HO
424. 18:52on the daily
425. 18:54where this is the Monday 10:00 a.m.
426. 18:56candle
427. 18:58and this is the Monday 10 a.m. candle.
428. 19:00We have a clear SMT here.
429. 19:04So, what do we look for? We look for a
430. 19:06swing formation on the 4hour. And we get
431. 19:08that. We get this C2 reversal from this
432. 19:12previous 2 a.m. candle low. We reverse.
433. 19:16This is our first target.
434. 19:18But as you all know, I'm only trading
435. 19:20the 6M candle. So this is getting
436. 19:22interesting since the 2M is already
437. 19:25expanding. So as we all can see,
438. 19:30we are already reversing down here
439. 19:35making the C2 closure reversal. So
440. 19:39people think, I missed this move
441. 19:41since I cannot catch any of this
442. 19:43movement since I'm trading the 6 a.m.
443. 19:46candle. So I miss this movement. I miss
444. 19:48this expansion and this expansion. So
445. 19:50what do we look for then? Like I
446. 19:52explained, this is the reversal
447. 19:53confirmed with SMT. We can see the SMT
448. 19:56here again. This is an SMT as well.
449. 20:00We have SMT here. As you all can see,
450. 20:04making a higher low here on RB SMT. So
451. 20:07reversal then we look for a new fractal
452. 20:10continuation like I explained this is
453. 20:12the C2 formation here C3 4 5 6. So we
454. 20:16can look for a C1C2 formation again and
455. 20:19that's what we're getting here.
456. 20:22This is the first opportunity to trade
457. 20:23the reversal C2 or C1 C2 continuation
458. 20:29but we form a C2 reversal here once
459. 20:34again. And we can clearly see every time
460. 20:35we do this, we do not invalidate this
461. 20:37low. We do not invalidate this low. We
462. 20:40have a C2 here. Again, we do not
463. 20:43invalidate this low.
464. 20:46And once again, we do not invalidate
465. 20:49this low. And we do not invalidate this
466. 20:51low. So every time we make a C2 reversal
467. 20:55signature, we do not invalidate that low
468. 20:58until we took our target right this
469. 21:01high.
470. 21:02So this is basically a very good example
471. 21:04on the continuations when we miss the
472. 21:07reversal down there but we can look for
473. 21:10a continuation we are taking these
474. 21:13relevant high but we are failing to
475. 21:15actually reverse here. So we can look
476. 21:16for continuations within these candles.
477. 21:20So this is basically the uh the examples
478. 21:23of how I apply this reversal and
479. 21:25continuation on the 1 hour and 30 minute
480. 21:27when everything is aligned from daily to
481. 21:304 hour to the 1 hour and 30 minute. So
482. 21:32my next video will be about how to find
483. 21:35entries within those um continuation or
484. 21:37reversal signatures. I hope you all
485. 21:40enjoy this video and make sure to leave
486. 21:42a like and a comment and subscribe to my
487. 21:45channel since I'm already working on the
488. 21:46next video about the entries. Right. See
489. 21:49y'all later.