Stupid Simple Equal High and Low Breakout Strategy — Transcript

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1. 0:00When price is in the middle of nowhere,
2. 0:01there is no reason to enter. Price is
3. 0:03simply looking for liquidity. We don't
4. 0:05try to guess if it will go up or down.
5. 0:07We just wait. When price reaches
6. 0:09liquidity, it reacts. Think of liquidity
7. 0:12as fuel. Price is like a supercar that
8. 0:14slowed down because the tank was almost
9. 0:16empty. Once liquidity is taken, the tank
10. 0:19is full again, and now price is ready to
11. 0:21move. Here is the big move. We get a
12. 0:24strong bullish breakout. We don't enter
13. 0:26the breakout. We wait for confirmation.
14. 0:28Price pulls back into the order block.
15. 0:30This is our confirmation. That's where
16. 0:32we enter long. Stop loss slightly below
17. 0:35the order block, and we let it go.
18. 0:37>> I love how simple these videos are. They
19. 0:38break down just very simple concepts
20. 0:41very well, and usually the simpler the
21. 0:43better. In this case, it's liquidity on
22. 0:44equal highs and liquidities on previous
23. 0:47session lows. This is a equal high
24. 0:48breakout, which is really nice. The
25. 0:50order block thing throws me off a bit. I
26. 0:52In my opinion, if you're going to have a
27. 0:53big breakout like this, you probably
28. 0:55want to trade the momentum and not wait
29. 0:58for a pullback under those equal highs
30. 1:00again. So, there is some adjustments I
31. 1:02want to do, but what we can do is build
32. 1:03this in Quant and actually create a
33. 1:06super sick indicator that identifies the
34. 1:08setup every single day. So, before I
35. 1:09started building in Quant, I actually
36. 1:11went to the LuxAlgo library, and I typed
37. 1:13in equal highs. And on here, it pulled
38. 1:15up all the equal high and low type
39. 1:17indicators that came up. We actually
40. 1:18have this one right here called equal
41. 1:21high equal low, which identifies these
42. 1:23absolutely perfectly. So, I clicked
43. 1:25using Quant, and then what that does is
44. 1:27it pulls this indicator in there, and we
45. 1:29can actually add or adjust the indicator
46. 1:32to our liking. So, what I did from there
47. 1:33is actually quite simple. I gave it a
48. 1:35screenshot of what we saw in the video.
49. 1:37So, I just said I need a breakout that
50. 1:39forms an FVG, and we would play off of
51. 1:41that gap for a continuation. And it
52. 1:44slowly started to build this indicator
53. 1:46to where I only get a signal when
54. 1:48there's an FVG that forms. As you can
55. 1:50see here, there was these equal highs
56. 1:52right here. It was having strong
57. 1:53resistance. We had a nice impulse
58. 1:54breakout. It tapped into the FVG gap,
59. 1:57and then it actually made a run for
60. 1:59another high. So, this indicator
61. 2:01actually ended up showing us some pretty
62. 2:02ideal setup. So, let's go look at it
63. 2:04some more.
64. 2:05So, here we go. A very significant break
65. 2:07with a nice gap left behind. We're
66. 2:09starting to see slowing in price off the
67. 2:11gap, waiting for a bearish signal.
68. 2:12There's our bearish signal. We can take
69. 2:14our short right here, stop above the
70. 2:16high or above the gap. I would usually
71. 2:18like to target a new low. So, we're
72. 2:20looking at a 1.48 to 1. We let it play
73. 2:23out.
74. 2:24Perfect. It ends up running right
75. 2:25through that low. So, just a simple
76. 2:27concept like that and utilizing the Lux
77. 2:29Algo library to tweak an indicator to
78. 2:31fit the setup I want is actually very
79. 2:33nice. But, if you want the source code
80. 2:35of this indicator, I want to give you
81. 2:36this quant chat completely free. It'll
82. 2:38show you the exact indicator that I used
83. 2:40here to build on top of and add to it.
84. 2:44Just comment EQ and I'll send you a
85. 2:46link.