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Price Action Trading Was Hard, Until I Discovered This SIMPLE 3-Step Trick... — Transcript

by Brad Goh (The Trading Geek) · 6,109 words · 860 segments · language en · Watch on YouTube

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0:00Price action trading didn't click for me
0:02for years. Not because it's hard, but
0:05because nobody explained it in the right
0:07order. My name is Brett Go and I've been
0:10trading for nearly 7 years. And this
0:12year alone, I've already crossed over
0:14$1.7 million in trading profits. Every
0:17single trade documented live on my
0:19second channel, Brett Trades. In
0:21addition to that, I've also helped
0:23hundreds of traders became six figure
0:25funded traders inside my mentorship
0:27program, the 1% [music] Club. And I'm
0:29also the founder of Edge Flow, the
0:31trading super app that is built for
0:32discipline and consistency. So quite
0:35simply put in English, I don't want your
0:37money. I don't need your money. I want
0:39you to become a better trader. Now that
0:41you know who I am, let's jump into the
0:43three steps that finally made price
0:45action simple and profitable for me.
0:50Now, when I started trading, I'm just
0:51like you. You know, I watch a bunch of
0:53YouTube videos about price action
0:55trading and I saw these gurus drawing a
0:58thousand different lines on their charts
1:00or they ask us to memorize a bunch of
1:03candlestick patterns like the freaking
1:05engulfing patterns, the the pin bar
1:07patterns and first of all is it's too
1:11overwhelming. Second of all, I could
1:13identify the pin bar candle, but I
1:15realized I still lose money even though
1:17I was following the candle to a tea.
1:19Right? So what I've realized over time
1:21is that most traders don't lose because
1:23they can't read candles. They lose
1:26because they are reading them with zero
1:29context. Which means that if you don't
1:31understand the big picture on why price
1:34move the way it move, it doesn't matter
1:36whether you have the perfect setup or
1:38the perfect candlestick pattern, your
1:40strategy will still fail. And nowadays,
1:42everybody's out here teaching price
1:43action like it's a freaking dictionary.
1:46But the market doesn't move like that.
1:47It move like a story which also means
1:50that if you skip to the last page of the
1:52book nothing will make sense because
1:54once again you are trading without
1:56context when you don't understand the
1:59reality of the market itself. You're
2:01just trading your perception of the
2:03market. So that is when I stop chasing
2:05random candlestick or chart patterns and
2:07I reduce everything to just three simple
2:10steps which I'm going to show you right
2:12now. If you follow these three steps in
2:14order, I triple guarantee that price
2:17action trading will become extremely
2:19boring, methodical, systematic,
2:22mechanical,
2:24but you'll be extremely profitable as
2:26well because profitability in trading
2:29comes from doing the boring repetitive
2:32task for an extended period of time. So
2:34these are basically the three steps that
2:36I want you to be following. Direction,
2:38location, and execution. Let's go
2:41through step by step. The first step is
2:43direction. The first thing you always
2:45want to be doing is to identifying the
2:47overall trend direction of the market.
2:50And at this stage, the only question you
2:52should be asking yourself is who is in
2:54control of price? Buyers or sellers?
2:58Because if it's buyers, then I want to
2:59be looking for longs. If it's sellers, I
3:01want to be looking for shorts. So, you
3:03always do this on the higher time frame,
3:04right? So, this is where I usually go
3:06onto the 4hour time frame and I try to
3:08identify the trend direction. So look at
3:11this price action right here. It's very
3:12obvious that price has went up
3:14significantly for quite some time now.
3:16So obviously the market is in an
3:18uptrend, right? But then what happened
3:20was that price actually pull back, goes
3:22up, pulls back, goes up and then right
3:24now this is where we are at. So the
3:27first thing is identify the trend
3:28direction and we have established that
3:30price is actually bullish right now and
3:32this is our most recent bullish breakoff
3:35structure. Now we always want to make
3:37sure that we map out the most recent
3:39bullish break of structure or bearish
3:41break of structure because we want to
3:43define our swing range. So right now you
3:46can see this is the swing low because
3:47this is the lowest point that led to
3:49this break of structure and then this is
3:50a swing high since this is the highest
3:52point since price starts pulling back.
3:54So as a result I can define my 4hour
3:57swing range just like this. And once
3:59again, the reason why we actually define
4:01our swing range is so that we can
4:04further narrow our focus, time and
4:07resources into a tight range, right?
4:10Because early on when you are looking at
4:12this, you don't know what's going on and
4:14you don't know whether to buy here or
4:15sell here or buy here or sell here. But
4:17when you just map out a swing range, it
4:19becomes crystal clear that this is the
4:21range that you want to be trading
4:23within. Which means anything outside of
4:25this swing range is simply noise. is
4:28simply a distraction because it doesn't
4:30allow you to formulate your bias. And
4:33that's it, right? Step one is pretty
4:34much done, right? You just identify the
4:36direction which is bullish and we know
4:38that we want to enter for longs because
4:40we want to trade in alignment with the
4:42higher time frame trend direction. The
4:45next step is location. Now that you know
4:48whether you want to buy or sell, the
4:49next thing you should be asking yourself
4:50is where? Where do I buy? Where do I
4:54sell? And the answer to that question is
4:56going to be at a point of interest.
4:58We don't want to be trading when price
5:00is in the middle of nowhere. For
5:02example, right now, this is where price
5:04at over here, right? So, if I try to
5:05enter for a sell right here, I would
5:07have to place my stop loss above this
5:11high right here and place my takeprofit
5:12right here at this swing low. And you
5:14can see this is not an intelligent
5:16risk-to-re decision, right? because this
5:19is you risking $10 to make back $10,
5:22which is quite simply not worth it
5:23because we always want to make sure that
5:25we get the best entries possible so that
5:27we can minimize our dial side and
5:28maximize our upside. And the only way
5:31you can do that is by trading at the
5:33best location by trading at the best
5:35price. So you pretty much can establish
5:37your location by identifying your point
5:40of interest. There's various type of
5:42point of interest. I've already done a
5:43video covering each one of these point
5:45of interest, each type of these point of
5:47interest. But basically, there's your
5:48supply and demand zones, your flip
5:50zones, your order blocks, your flip plus
5:52sweep zones. There's a bunch of like
5:54different zones out there, right? Once
5:56again, if you want to learn more about
5:57each one of these point of interest,
5:59just go to my market mechanics playlist
6:01on YouTube and you will see a very
6:02in-depth tutorial on each one of this.
6:05But basically, next step is to look for
6:06the location, right? Where to buy, where
6:08to sell. And over here, what you want to
6:11do is to identify the most obvious
6:14supply and demand zones. Okay? So over
6:17here, since you want to enter for a buy,
6:19we don't want to care about supply
6:20zones, right? Because supply zones is
6:22for people who want to enter for a sell.
6:23We want to look for demand zones. So you
6:26always start from the extreme swing low
6:28all the way to the extreme high, right?
6:30So over here, when I look at this, let
6:32me jump down to the 1 hour time frame,
6:33which is my medium time frame. I see
6:35that this entire thing right here is the
6:37extreme low, right? Like you can see
6:39this entire candlestick right here. This
6:41is where what happened was that price
6:43came down, pull back, comes down, sip
6:45liquidity right here below this low and
6:47then later on it went up there and broke
6:48structure. So this is the extreme demand
6:51zone. Okay. And then there is also
6:54another demand zone right hereish,
6:56right? But this one has already been
6:58broken, right? So this is quite
6:59irrelevant. All right. So this pretty
7:01much leave us with like this demand zone
7:03that we have marked up right here which
7:05is also the extreme demand zone. Okay.
7:08And another thing that you want to do is
7:10to actually map out your premium and
7:11discount. So this right here is the
7:15premium and discount too. And if you
7:17want to copy the settings, I've put it
7:19on the screen itself. You can like just
7:20take a screenshot of this or like pause
7:22this video and try to copy the settings
7:23right here. But basically what it does
7:25is that it allows you to understand
7:28where to enter for a sell and where to
7:29enter for a buy or what's the best price
7:31point to do so. So above here, this is
7:34your premium level, right? So when price
7:36is in the premium level itself, you want
7:38to be looking for sells because price is
7:40considered as expensive or overbought.
7:43And then once price gets below the
7:45equilibrium level, which is the 50%
7:47level and it comes down to the discount
7:49area, this is where you want to start
7:50looking for longs because this is where
7:52price is considered as cheap, considered
7:55as oversold. Looking at this particular
7:57case itself, I pretty much mapped out my
8:00premium and discount by dragging it from
8:02the swing low all the way up to the
8:04swing high. And I've established that
8:06price is still in the premium pricing.
8:08It's still considered as overbought. So
8:10I shouldn't be entering for a buy
8:12anywhere right here. Which means I'm
8:14much more better off waiting for price
8:16to actually come down below this
8:19equilibrium level, right? Coming into
8:21the discount range. Then I start looking
8:23for longs. And it's not a coincidence
8:26that this demand zone is actually in the
8:29discount pricing as well. And that
8:31pretty much just tell us the location
8:33where we want to enter for our buy.
8:34Right? That's the price point that price
8:36is most likely going to react and start
8:39reversing and give us the next move to
8:41the upside. And another thing is that
8:44this is also the swing low, right? It's
8:46really like the lowest point that price
8:48has to hold. It's really the last line
8:49of defense that price has to hold in
8:52order for price to remain bullish.
8:54Because in a bullish structure, we're
8:56assuming that price is going to be
8:57creating higher highs and higher lows.
8:59Which means that this low cannot be
9:01lower than the previous low. If it
9:03becomes lower than the previous low,
9:05then the bullish market structure has
9:07broken and right now we are shifting
9:09bearish. So that's pretty much how you
9:11establish the the location, right? You
9:13look for a significant point of
9:14interest. You may up your premium and
9:16discount. You want to make sure that you
9:19are trading below the equilibrium level
9:22if you're entering for longs. And the
9:24lower the point of interest is within
9:27the discount pricing, the more likely is
9:30going to hold because once again is the
9:33last line of defense that price has to
9:35hold in order for price to remain
9:36bullish. All right, so that's pretty
9:37much the second step, right? The reason
9:39why we want to look for the best
9:40location is because we don't want to
9:42enter in the middle of nowhere because
9:44when we try to enter in the middle of
9:45nowhere, we tend to get trades which
9:48give us a very bad risk-to-reward ratio,
9:50right? So that's not a good opportunity
9:52that you should be capitalizing on. Now
9:55basically your job as a trader is to
9:57allocate resources is to allocate your
10:00capital is to determine which trades are
10:03worth taking and which trades are not
10:05worth taking. So in this particular case
10:07itself like I said when price in the
10:09middle of nowhere not worth taking when
10:12price is at a good point of interest is
10:13at a good price point worth taking.
10:16Yeah. So we always want to make sure
10:17that we focus on preserving our capital
10:20and deploying it when we see our A+
10:22setups which are extremely high
10:24probability which brings us to the third
10:27step. Right? But before we go to the
10:28third step remember price have not
10:31reached our location yet. We want to
10:34wait very patiently for price to come
10:35down to our location. This is where you
10:38can either set an alert right here on
10:39Trading View, right? I set an alert at
10:40this 1.32. So once price comes down,
10:43trigger your alert, you go onto the
10:45charts and you actually look for your
10:46entry models, which is step three. Or
10:48you can just wait very patiently for
10:50price to tap into that point of
10:52interest. So right here, do nothing, do
10:54nothing. As tempting as it might be to,
10:57you know, start entering for a buy and
10:58sell, no, you stay calm. You do nothing.
11:00You do nothing and you wait and wait and
11:02wait and then eventually price comes
11:05down to your point of interest and your
11:07patience pays off. Which brings us to
11:09step three. Remember, you only go to
11:12step three, which is the execution step
11:14once price has entered into the point of
11:17interest. Once price has entered into
11:20the location, which means that before
11:22price does this, you shouldn't be going
11:24down to the lower time frame. You
11:26shouldn't be looking for entries. Okay?
11:28This trick alone will save you thousands
11:30of dollars. It will save you from making
11:33a bunch of stupid trades, rushing into
11:36the trades early, forcing trades when
11:37there is no opportunity, overtrading and
11:40all all that stupid amateur mistakes
11:42that you will make if you are trading.
11:44So right now the price has stepped into
11:46our point of interest. brings us to step
11:48three which is execution. This is where
11:50you want to ask yourself when when to
11:53buy when to sell. Early on we have
11:56established the direction which is the
11:58what which is buy or sell right which
12:00one right which one and then we have
12:02established the location which is
12:04exactly where right like where to buy
12:06and where to sell. And last but not
12:08least the execution tell us when right
12:10this is the timing when to buy when to
12:13sell. So once again we can get in at the
12:16optimal price point and can have minimal
12:18downside and maximum upside in English
12:22basically means how do I make a lot of
12:24money while risking a small amount of
12:26money. So once price has stepped into a
12:29point of interest you jump down to your
12:31lower time frame which in this case I'm
12:33going to be using the 15minut time frame
12:34itself. So at this point I'm looking for
12:38a few things right because I don't just
12:40want to enter for a buy and sell
12:42randomly just because price has stepped
12:43into my point of interest because what
12:45can happen is that price can just
12:47continue crashing down just like this.
12:49So I want to look for my confluences. I
12:51want to look for my confirmations so
12:53that once again I can get in at a
12:55perfect timing. So my confluences that
12:58I'm going to be using today is these
13:00three confluences that is all based on
13:02pure price action. Number one, a strong
13:04rejection candle. Number two, a break
13:07and close in the buyers direction. And
13:09number three, a failure to close
13:10continue against the buyers. I'm going
13:12to explain everything. All right? So,
13:14don't worry. Don't worry if you don't
13:15understand anything that I just
13:16mentioned right there. Okay? So, what
13:18happened right here is that price has
13:19just mitigated the point of interest,
13:21but it did not go up. There was
13:24insufficient liquidity, insufficient
13:26demand for the market to go up. How do
13:28we know that? Well, we know when price
13:30actually came down here, mitigate it,
13:32use some demand, use some buy orders in
13:35the market to cause price to fuel all
13:37the way up here, right? But once it
13:40actually fueled all the way up here, it
13:41continue crashing down. Price did not
13:44broke structure. Price did not took out
13:46this last lower high. If price is able
13:49to take out that last lower high, then
13:50that is where we know that demand has
13:52overpowered supply and the buyers are in
13:54control again. So this pullback is over
13:57and right now we are most likely
13:58shifting bullish. Okay, so that's pretty
14:01much the confirmation that we need. We
14:03need a very strong rejection candle as
14:06well, right? And also like a break and
14:08close in the bias direction. So at this
14:11point of time, what happened was that
14:12price has came all the way down here and
14:14let's observe what price does next.
14:16Okay, because this to me is a sign that
14:18I should be entering for the position
14:20already because what happened is that
14:22price already came down here and swept
14:24liquidity. Obviously, we are not going
14:25to cover too much about liquidity
14:27because I really want to make sure that
14:28this three steps is as simple as humanly
14:31possible. If you want to learn more
14:32about liquidity, how to get the optimal
14:34price points, uh how to get the perfect
14:36sniper entries using liquidity, once
14:39again check out my other videos about
14:40liquidity. But basically, right here,
14:42there was a liquidity sweep over here.
14:44And we also got what I call a strong
14:47rejection candle, which is either a
14:50engulfing candle or a pin with
14:52displacement. So a engulfing candle is
14:54something like this, right? Where
14:56there's like a huge bullish candlestick
14:58just like this, which is much more
15:00bigger than the previous candlestick and
15:02it's simply engulfing it. And a pin with
15:05displacement is something like this as
15:06well where you got like a pin bar
15:08candlestick over here, right? It just
15:10looks like a pin bar and then the next
15:11candlestick it give you like a huge
15:13bullish candlestick just like this which
15:15signal to you that there's a lot of
15:17bullish momentum in the market itself.
15:19So that is my first confluence a strong
15:22rejection candle which is either a
15:24engulfing candlestick pin with
15:26displacement of both and ideally this
15:28case we got both and then you also want
15:30a break and close in the bias direction.
15:32Now bear in mind what's our bias right
15:34now our bias right now is that we want
15:36to look for longs. We want to actually
15:37enter for buys. So this means that we
15:40want to look for a break and close in
15:43the bullish direction. Do we have that
15:46yet? Well, we did right. We got price
15:49pretty much breaking uh this previous
15:51candlestick just like this and then it
15:54closed above it in the bullish trend
15:56direction just like this. All right,
15:59it's really just as simple as that. You
16:01basically want to identify the bullish
16:03candlestick closing above the previous
16:05bearish candlestick in a direction that
16:07you want to be trading in. And the next
16:09thing is failure to continue against
16:11buyers. Now, right here, what's the
16:16bias? The bias right now is longs which
16:18means against bias means shorts. So when
16:21this actually happen over here this tell
16:24us that there is insufficient selling
16:26pressure in the market for price to
16:28continue going down because if price
16:30want to continue going down it's going
16:31to create more bearish candlesticks just
16:34like this and just cause price to
16:36absolutely collapse and continue going
16:38down. But that did not happen. What we
16:41do have is price came down retesting
16:44this level over here on the left hand
16:47side right here. But then there was
16:48insufficient sell orders. There's not
16:51enough sellers in the market and that
16:53cost price is just start reversing. So
16:55that to me is a failure to continue
16:58against the buyers and that's pretty
17:00much all the confences that I need.
17:02Right? So I pretty much got these three
17:04confirmations right here. Once again,
17:06all based on pure price action. No
17:08indicators, no complicated jargon
17:11whatsoever. Just clean price action. And
17:14this allows me to know, okay, this is
17:17the right time to enter. This is my
17:19entry signal when I got all of these
17:21criteria being checked off in my trade
17:23plan itself. So, this is where you can
17:25easily enter for a long ride here. You
17:27can either enter for a buy on the close
17:29of the candlestick itself or you can
17:32even place like a limit order like above
17:33this candlestick itself, right? But in
17:35this case, just going to keep things
17:36simple. Enter for a buy right here.
17:38Place my stop loss below this low here
17:41and place my takeprofit at let's say
17:42like 3 R
17:44just like this. Now you basically want
17:47to be placing a stop loss at a price
17:48point that will invalidate your trade
17:50ideal. So in this particular case itself
17:53like I said we have established that
17:55price is reversing right now right we
17:57are assuming that there is more buyers
17:59and the sellers in the market right now
18:01or it's about to reverse so this means
18:04that if price later on come down here
18:06and take out this low and just continue
18:08going down this means that our bias is
18:10wrong right this means that our bias is
18:12wrong and we get stopped out with like a
18:151% loss all right just like a small loss
18:18just like this and I have like a hidden
18:20rule which says that if I cannot define
18:22my stop before I enter, I don't take the
18:25trade. So I always make sure I think
18:27about what could possibly go wrong,
18:29right? And place my stop loss at that
18:32price point itself. And then in terms of
18:33the take profit, right, like I said,
18:35just to keep things simple, you just
18:36place it at three times your stop-loss
18:39distance. So you drag this position two
18:42thing all the way up to like three just
18:44like this until it shows three over here
18:46like the risk to ratio. And that is
18:48where we want to take profit, right?
18:49Once again, just to keep things simple
18:50for this video itself. So, let's see
18:53what price does next, right? Price
18:54continue going up just like this, right?
18:56Continue trickling up and slowly but
18:59surely it eventually comes out there and
19:01smash our TP. Really just as simple as
19:04that. And all we did was that we used
19:06three simple time frames which is the
19:084hour for direction, the 1 hour for
19:11location and the 15-inut for execution.
19:15And on a 15-inut for execution, we look
19:18for three confluences, right? So, three
19:20steps, three time frames, three
19:23confluences, simple methodical strategy
19:26that you can execute consistently for a
19:28longest time. And that's how you get
19:30consistent results. Now, before we look
19:32at the next trade example, I want you to
19:34understand something. The hard part
19:36about trading is not in spotting A+
19:38setups. It's in ignoring everything
19:40else. Like right here what you can see
19:42on the screen this is an obvious A plus
19:44setup because yes checked off every
19:46single entry criteria and I've done
19:48sufficient preparation and analysis by
19:50looking for my three steps before I
19:51actually enter for the trade. But there
19:54are going to be days where you do the
19:57three steps and price does not get to
19:59your desired location or price enter
20:01into your desired location but it does
20:03not give you a confirmation signal which
20:06means you don't get all of these
20:07confluences on those days. It's very
20:11important that you stay away. You remove
20:15your hands physically from the keyboard
20:17and you do not trade. So, it's important
20:20to know when to trade, but it's also
20:21more important to know when not to
20:23trade. Because if you trade during those
20:25times where you shouldn't be trading,
20:27you're going to make a bunch of stupid
20:28decisions, make a bunch of unnecessary
20:31losses, and it's just not worth it. So,
20:36here's when not to trade. I personally
20:38do not enter when price is in the middle
20:41of nowhere. Right? Like I said, when
20:42price middle of nowhere, just like this,
20:44not at a optimal price point, not at a
20:46location, I don't enter. I'm much more
20:48better off waiting for price to come
20:50down to the location, come down to a
20:52point of interest, then I look for my
20:53entry. That's non-negotiable. Another
20:56thing is I don't anticipate candles. So
20:58over here when price is like coming down
21:02here, I don't sit here and think, "Oh my
21:04god, I'm going to enter for a buy right
21:05now." I'm going to assume that price is
21:07going to go up and reverse right here.
21:09No, you don't do that, right? You always
21:10wait for your confirmation candle
21:12because if you do this, what happens is
21:14that if you don't get a confirmation,
21:16price can just continue collapsing and
21:18it will get stopped out. Once again,
21:20unnecessary loss that could be avoided
21:22if you were a little bit more patient
21:24and you wait for your confirmation
21:26candle. And number three, I don't enter
21:29just because price looks good. Remember,
21:32you don't want to be trading your bias.
21:34You don't want to be trading your belief
21:36about the market. You want to be trading
21:37the market itself. You don't want to be
21:41imposing your will onto the market. What
21:44I mean by that is that when price comes
21:46down to this discount pricing, you
21:47shouldn't assume that price is going to
21:49reverse immediately. Oh, price has came
21:51down below this 50% equilibrium level,
21:53time to buy. No, it doesn't work that
21:55way. You always want to make sure that
21:57once again you look for your extra
21:59confirmations, right? So don't enter
22:01just because price looks good or price
22:03looks cheap or price looks expensive.
22:06You don't decide whether the market is
22:08going to move up or down. Value is
22:11subjective. Price is objective and we
22:15always want to be trading price. We
22:17don't want to be trading our perception
22:19of price which is value that we attach
22:22to price. And last but not least, I
22:25don't take trades where it's too
22:27confusing, right? which means there is a
22:30lot of different conflicting biases like
22:32for example I have spot all of these
22:35three confluences itself but the thing
22:37is somewhere in my gut says that price
22:39is going to continue going down and the
22:41internal structure is showing me that
22:43it's heavily bearish right now maybe
22:44because there's a lot of like bearish
22:46candlestick just like this when you have
22:47such a conflicting bias just like this
22:50where you don't know whether you also
22:51enter for a buy or sell that's probably
22:53a trade that is worth passing on because
22:56when a good trade ideal present itself
22:58like a A+ setup. It usually hits your
23:01head like a 2x4 truck like just thinging
23:04and then you will know that that's the
23:06trade worth taking because like I said
23:08your job as a trader is to allocate
23:10resources wisely efficiently. So you
23:13want to make sure that you deploy
23:14capital only on A+ setups. So those are
23:18the scenarios that I personally do not
23:20trade. Like I said, very important for
23:22you to understand these scenarios so
23:23that you can catch yourself in one of
23:26those scenarios and you can stay out of
23:28the market instead of getting itchy
23:30fingers and taking a bunch of stupid
23:32trades, playing stupid games, winning
23:34stupid prizes. All right, so for the
23:36next example, I'm just going to like
23:38speedrun it because by now you should
23:40have a very clear understanding of this
23:42three-step framework and how to properly
23:44utilize it. So first step, look for the
23:47direction. We have established that
23:48price is going down, lower highs, lower
23:50lows, blah blah blah. You've heard me
23:52say that a million times by now. And you
23:54want to map out the most recent break of
23:56structure so that we can get our most
23:58recent swing range. Uh this is the swing
24:01high right here. And then this is the
24:02swing low here. And you can also map
24:06this high over here as well because this
24:08is also a very obvious high or you you
24:10don't need to as well. But yeah, let's
24:12just remove that. Anyways, when that
24:13actually happens, you can actually look
24:15for your location next, right? Map out
24:17your premium discount. You will see that
24:19right now price has came above the
24:21equilibrium level, which is good news
24:22for us. Okay, this tell us that price is
24:25potentially going to reverse anytime
24:26soon right now. But how do we know
24:28where, right? Well, we map out our
24:30supply and demand zones. So, we always
24:32start from the extreme. This is the
24:34extreme supply zone over here. And then
24:37followed by this supply zone that we
24:40have marked up right here. But you can
24:42see this is already mitigated which
24:43means price came down mitigate that
24:45supply zone fill up the sell orders that
24:47was within the supply zone just continue
24:48dumping just like this. So most likely
24:50price is not going to respect this zone.
24:52What I do want is the unmititigated
24:54supply zone like this one right here.
24:57Okay. So that's the unmitigated supply
24:58zone that price is approaching. So this
25:00is where this is the point of interest
25:02that I want to pay attention to number
25:04one and number two. So at any point of
25:07interest right once I can see these
25:10three confluences I'm going to enter for
25:12a sell that's it as simple as that and I
25:14do nothing until any one of these point
25:17of interest get mitigated so over here
25:19price came up here that's it tap our
25:21zone boom finally tap our zone the
25:23minute tap our zone drop down to the 1
25:25hour time frame itself and once again
25:27price has already entered into our
25:29desired location we have already
25:32established the direction which is down
25:33and we want to enter for a
25:35Now comes down to execution. Execution
25:38very simple. You just look for once
25:40again these three sort of confluences
25:43that you can see right here. So at this
25:46point of time price mitigated the supply
25:48zone came down. Do we have a strong
25:50rejection candle, a engulfing candle or
25:53a pin with displacement? Yes, we do.
25:55Right? This is a pin with displacement.
25:57Price came up there, rejected it and
25:59started coming down uh very heavily. Do
26:02we have a break and close in bias
26:04direction? Yes, we do. Right. Price
26:06pretty much came down here and took out
26:09this last low right here and pretty much
26:11broke the last low and it closed below
26:14it. Is there a failure to continue
26:17against the buyers a trap candle? Yes,
26:20we do. Right. What will happen is that
26:21when price went up there pulls back, it
26:24wanted to go up and continue. Right. If
26:26it were to continue with this uh bullish
26:29short-term trend direction, what could
26:31happen is that price would just continue
26:32doing this. But that did not happen. It
26:34actually failed, right? Supply
26:36overpowered demand. We got pretty much
26:39price crashing down here. So that is
26:41where we got our three confluences. As
26:43simple as that. We can look for shorts
26:44any point of time right here. So over
26:46here, if I would enter for a sell here,
26:49once again, you want to be placing your
26:50stop loss at a price point that
26:52invalidate this trade idea itself.
26:54>> [snorts]
26:54>> So right here, where is the pin with
26:58displacement? Where is the strong
27:00rejection candle? As much as possible,
27:02you want to place your stop loss above
27:04the rejection candle. Because right now,
27:06we are assuming that
27:08if price were to remain bearish, it's
27:11going to continue crashing down just
27:12like this. But if price were to continue
27:14bullish, right, it might mitigate some
27:16demand level right here, continue going
27:18up and take out this high right here,
27:19take out the rejection candle. So that
27:22is like the highest point that price has
27:25to hold in order for price to remain
27:27bearish. So that is the price point
27:28which invalid the trade ideal. I'll
27:30place it right here above the rejection
27:31candle and once again place a stop loss
27:34at 3R just like this. Okay. So let's see
27:38what happens next. All right. Later on
27:40price went up there. You can see what
27:41happened over here was that price went
27:43up there and tried to retest the
27:46previous rejection candle itself. Which
27:49means that if you place your stop loss
27:50at the wrong place, like let's say below
27:51or above here, you would be stopped out
27:54just for price to go in your way. All
27:55right. So in this case, we are still in
27:57the position itself, right? Let's just
27:59continue to see how price react whether
28:01there is sufficient supply in the
28:02market. Okay, there is sufficient supply
28:04in the market and then price just
28:05continue going down and slowly and
28:08surely let me just go up to the 4hour
28:09time frame. Let's see whether hit TP or
28:11not. Come down and smash our TP. As
28:15simple as that. And once again, it all
28:17comes down to these three simple steps.
28:20Direction, location, execution, and
28:22waiting for your three confluences.
28:25Tada. That's it. And if you watch my
28:27videos, you will know that I like to
28:28make trading simple. I try to simplify
28:30it in a way where like a 5-year-old can
28:32understand because I fundamentally
28:34believe that when the rules are simple,
28:37emotions have nowhere to hide. If you
28:40have a very clear systematic framework
28:42in terms of how you map out your charts,
28:44analyze the charts from top to bottom
28:46and you have a very clear criteria on
28:48where to enter or rather when to enter.
28:52Once each one of these criteria has been
28:53met, then there is no room for
28:56guesswork, secondguing or emotion
28:59whatsoever. You just follow the
29:01mechanical trading system like a
29:03freaking robot. And when you do that,
29:05that is where you realize that you
29:07actually take much fewer trades because
29:09now you're focusing on quality instead
29:11of quantity. And that is where you tend
29:13to spend less time overthinking and
29:16thinking uh should I enter for a buy,
29:17should I enter for sell because now you
29:19actually have a structured system. And
29:21that is where you stop chasing sellup.
29:22You stop forcing trades and you know
29:24exactly what constitute as a A+ setup
29:27and you just ignore everything else.
29:29Like to me that's the holy grail right
29:32there. is just a mechanical trading
29:34system that works and you do it and you
29:37keep on iterate on it, keep on making it
29:39better, doing more of what works and
29:41less of what doesn't. And as time
29:42passes, as long as you put in the
29:44consistent actions, your results will be
29:47consistent as well. Now, once again, I'm
29:49not saying that this is the only way to
29:50trade price action. This is just like 1%
29:53of my entire market mechanics trading
29:56strategy. There's a lot of different
29:58confluences that you can take into
30:00account of. There's also a lot of
30:01different market conditions that you
30:02need to be aware of because this type of
30:04strategy, it might work here and there,
30:07but it's not going to work if the market
30:09conditions start changing. Which is why
30:11if you want to learn more about market
30:13mechanics, which is the trading strategy
30:14that I personally use, you can check out
30:16this playlist right here. You can go and
30:18binge watch every single video in here.
30:20And I can triple guarantee if you apply
30:22everything you learn here, you will
30:24become a master at analyzing the charts.
30:26And to me, learning market mechanics is
30:28like taking the red pill. Once you see
30:30it, you can't unsee it. So, go and check
30:32that out yet. Nothing to sell you here.
30:34Just go and watch those free courses and
30:36I'll see you guys in the next video. And
30:37as always, remember, you're just one
30:40trade away.

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