I Took My #1 Trading Setup Live — Transcript

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1. 0:00Yesterday, I showed you the strategy
2. 0:01that I trust the most. And today, you
3. 0:03will actually watch me take this trade
4. 0:06with this strategy in real time. If you
5. 0:08guys trade RSI divergences like I showed
6. 0:11in yesterday's video, like this example
7. 0:14that just fired on the chart on EuroUSD
8. 0:17on a one minute time frame, the one
9. 0:19thing that you need to keep in mind more
10. 0:20than anything else on the entire planet
11. 0:23is the time of day. We get so lost in
12. 0:26the charts and trying to analyze things
13. 0:28that when you see some setup and you're
14. 0:31like, "Cool, this is perfect. I'm going
15. 0:32to get in. Everything's fine." You
16. 0:34forget that it's like 8:58 a.m. And then
17. 0:39you get into a position 2 minutes later
18. 0:41it starts going crazy. The volatility
19. 0:43makes no sense. All of the structure is
20. 0:46broken because before that it was low
21. 0:48volume, low volatility. And now the
22. 0:50market's open and it's nuts. Jeez, I
23. 0:54can't even do this without glasses
24. 0:55anymore. Now, this trade that fired
25. 0:57right here with the regular bearish
26. 0:59divergence, I didn't get in right away
27. 1:01because I had to take my kid to school
28. 1:02and I just got home. It's raining and
29. 1:04traffic was a pain in the ass. But now
30. 1:06that I'm down here in my trading
31. 1:08dungeon, I realized that it was like
32. 1:108:50. The Frankfurt session's about to
33. 1:13start in Germany, same time zone as me.
34. 1:15And I was like, dude, that's a pretty
35. 1:16strong divergence, man. RSI peaked out
36. 1:19of the 70 range. The next high is deep
37. 1:22within the 7030 range. And all I wanted
38. 1:25to do, I just got into this trade. It
39. 1:27went against me for a little bit, but
40. 1:28all I want to do is hold this until the
41. 1:31RSI gets down here to the 30 range. And
42. 1:33then I'm out. So basically what I did
43. 1:35was I entered right here and I put my
44. 1:37stop loss between these two right here.
45. 1:39This high and this high. I don't know
46. 1:41where my target is. All I want is that
47. 1:44RSI to get down to the 30. I think it's
48. 1:46healthy trade. It's got good structure.
49. 1:49Bullish momentum died off with the
50. 1:51divergence breaking down below previous
51. 1:54structure. And you can see it's
52. 1:56maintaining that bearish structure. I'm
53. 1:58loving the shape of this move.
54. 2:00Everything's good. We don't even have
55. 2:02any high impact news right now until
56. 2:04like the next 5 hours. So, I'm going to
57. 2:06let this roll for a little bit and we'll
58. 2:08see what happens because trading is
59. 2:10boring and the best thing that you can
60. 2:11do is wait. In the meantime, I clean my
61. 2:14desk. And this is where I think a lot of
62. 2:16traders actually hurt themselves because
63. 2:18once you're in a trade, suddenly every
64. 2:21candle feels important. You get a candle
65. 2:24going against you and you start thinking
66. 2:26maybe I should move my stop. Then price
67. 2:29moves in your favor and you think maybe
68. 2:31I should take profit now. And then
69. 2:33there's pullbacks a little bit and
70. 2:35suddenly you're questioning the entire
71. 2:37setup. But none of those things were
72. 2:39part of the plan when you entered.
73. 2:41You're basically making new decisions
74. 2:44every 60 seconds based on whatever the
75. 2:47last candle did. And I've done this
76. 2:49enough times to know that for me,
77. 2:51sometimes the best thing I can possibly
78. 2:54do is just get away from the screen. So
79. 2:56that's literally what I'm doing here.
80. 2:58I'm cleaning my office. The trade
81. 3:00doesn't need me watching it. My stop
82. 3:03loss is already there. My risk is
83. 3:05defined. I know exactly what I'm waiting
84. 3:08for. If this trade hits my stop, then I
85. 3:11was wrong, and that's fine. That's what
86. 3:13the stop loss is there for. If price
87. 3:16continues moving in my direction, I'm
88. 3:18going to let it do its thing until the
89. 3:21reason I plan to exit actually happens.
90. 3:24And I think that's an important
91. 3:26distinction. Having discipline doesn't
92. 3:28always mean doing something. Sometimes
93. 3:31discipline is not interfering with the
94. 3:34plan. It's allowing the trade you
95. 3:36planned before all the emotions kicked
96. 3:38in to actually play itself out. So, I'm
97. 3:41going to shut up now, speed this up,
98. 3:44clear the disaster of an office that I
99. 3:46have, and we'll see whether the price
100. 3:48gets down to that RSI 30 level, or maybe
101. 3:51I'll just showcase a huge failure.
102. 3:53Either way, this is going to be valuable
103. 3:55content for you guys.
104. 3:59All right. [clears throat] So,
105. 4:02RSI currently right now is 31.9
106. 4:05and my target was 30. So, we've had some
107. 4:09nice bearish momentum. I mean, it took a
108. 4:12while. It consolidated for a little bit,
109. 4:15but this is a really nice healthy move
110. 4:17because of that divergence and because
111. 4:19the market is opening. And when the
112. 4:21market opens, it chooses a direction for
113. 4:24the day usually or at least for the
114. 4:27session. So, now that we're at 31.98
115. 4:31on the uh on the RSI, I think it's a
116. 4:34nice healthy level to close. So, what
117. 4:36I'm going to do is I'm going to open up
118. 4:38my MT5 account. You can see I am $25 in
119. 4:43profit. Zoom this out to the five minute
120. 4:45chart. You can see that's where I
121. 4:47entered and uh right now it's here at
122. 4:50previous structure. You know, we're
123. 4:52oversold. If you want to see that on the
124. 4:54one minute chart, you can see we I
125. 4:56entered and then we had that spike up
126. 4:58and it's been going down ever since. So,
127. 5:00this is a nice little exit area for me.
128. 5:03Huge profit on the account. I mean, it's
129. 5:06a $122 account. So, I'm happy.
130. 5:11And that's kind of how I want you guys
131. 5:12to trade. I want you guys to trust the
132. 5:15buyers and the sellers. And I want you
133. 5:18to trust their interest in the market.
134. 5:21You are not trying to guess which
135. 5:24direction the price is going to go. You
136. 5:27are following the momentum.
137. 5:30And following the momentum means being
138. 5:32able to read between the lines. Being
139. 5:35able to see when buyers don't want to
140. 5:38buy anymore. You want to see when
141. 5:42sellers are no longer interested in
142. 5:44selling anymore. The RSI is a momentum
143. 5:48indicator. People that are heavy sellers
144. 5:50aren't usually going to get into new
145. 5:53sell orders at the bottom of the RSI
146. 5:56range on that specific time frame.
147. 5:59They're going to get in when the buyers
148. 6:02are already exhausted. The buyers were
149. 6:04exhausted here. They were no longer
150. 6:06interested in buying, bringing the price
151. 6:08up. So that's when sellers get in and
152. 6:11they take it down until they've run
153. 6:14their race, their section of the chart.
154. 6:17And that's what the RSI tells you. It
155. 6:19goes out of the range when price is
156. 6:21going up above the 70 range and then it
157. 6:24goes down below the 30 and now the
158. 6:27buyers are going to look into getting
159. 6:29into price at these levels. But they're
160. 6:32also going to wait for the sellers to
161. 6:33get exhausted. So there's going to be a
162. 6:35little bit of buying pressure like there
163. 6:37is right now with the 30. Sellers might
164. 6:39get a second win to push it down, but
165. 6:42they're not going to push it down
166. 6:44enough. And we'll probably end up seeing
167. 6:47another RSI divergence here as price
168. 6:50potentially makes another lower low and
169. 6:52then goes up while the RSI makes a
170. 6:55higher low. And that's going to be your
171. 6:59bullish divergence for a long position.
172. 7:01I really wanted to make this example for
173. 7:03you guys so that you can see not only
174. 7:05one how boring trading is, but how you
175. 7:08just have to be in the market and sit on
176. 7:11your hands. Because most traders when
177. 7:14they see chop like this, they would have
178. 7:16been stopped out here, stopped out here.
179. 7:18And this back and forth makes them start
180. 7:21buying and selling without trusting the
181. 7:24direction of the previous signal that
182. 7:26the market's buyers and sellers were
183. 7:29showing you. loss of interest in buying
184. 7:31and loss of interest in selling at
185. 7:34specific levels based on the RSI, which
186. 7:37is the momentum of the markets. That's
187. 7:39the whole point of this video. I just
188. 7:41wanted to show you a real life example
189. 7:43of a real life trade on a real life
190. 7:45small account and how all it takes is
191. 7:48the ability to identify something, trust
192. 7:52that you've identified it correctly, and
193. 7:54wait for a specific target that you've
194. 7:57predicated based on the momentum based
195. 8:00on the interest of buyers and sellers. I
196. 8:02felt like it was important to make this
197. 8:03video to show you guys the process of
198. 8:05trading and how you use your knowledge
199. 8:09to identify what the market is doing.
200. 8:12And what the market is doing is what the
201. 8:14buyers and the sellers are doing.
202. 8:16They're always both active all the time.
203. 8:19They're just looking for their
204. 8:20opportunities. And when enough of them
205. 8:22start doing it, you just follow their
206. 8:24coattails. Don't try to get a zero draw
207. 8:27down trade. Don't try to time the
208. 8:29perfect market. Watch the momentum. If
209. 8:32bullish momentum dies off, that's when
210. 8:34sellers get interested. Once they start
211. 8:36selling, that's when you should get
212. 8:38interested. And you know that sellers
213. 8:40get less interested on the bottom part
214. 8:43of the RSI range as we saw in the
215. 8:45example on the chart. And that's why I
216. 8:47held the trade without a defined
217. 8:49takerit, but manually closing when RSI
218. 8:52hit the 30 level. You do this
219. 8:54consistently week after week, month
220. 8:56after month, year after year, you'll be
221. 8:58in a good position. If you want the full
222. 9:00in-depth tutorial of this trading
223. 9:02strategy, watch this video right here.
224. 9:04Make sure to share this video with your
225. 9:05friends.