Stupid Simple Multi Time Frame Trading Strategy — Transcript

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1. 0:00The reason you keep losing trades is
2. 0:01because you see the market go up and you
3. 0:03start to place a buy position right here
4. 0:05just for the market to retrace and then
5. 0:07you get out of the trade here because
6. 0:09you see that you're in drawdown just to
7. 0:11see the market go right back up again
8. 0:13and then you feel bad. But this is just
9. 0:15forming an uptrend on the daily
10. 0:17timeframe. But what I want you to
11. 0:18understand is what happened between
12. 0:21where you entered and where you got out
13. 0:22because this is the area I want you to
14. 0:25focus on. Now this looks like the market
15. 0:27is going down but in reality if you go
16. 0:29down to the 4-hour timeframe
17. 0:32you'll see that the market is making
18. 0:34lower highs and lower lows which is
19. 0:37creating this pullback on the daily
20. 0:40timeframe. So what you should do instead
21. 0:42is wait for this most relevant lower
22. 0:45high to be broken. That will give you
23. 0:48confirmation that we are about to now
24. 0:51start creating this next leg up on the
25. 0:53daily timeframe. Now you want to wait
26. 0:55for a nice pullback so that you can get
27. 0:57a prime entry, place your stop loss
28. 0:59below this lowest point of the pullback
29. 1:01and now start to buy the market back up
30. 1:03so that you can catch this full leg here
31. 1:07on the higher timeframe. All right, so
32. 1:08it's simple multi-timeframe market
33. 1:10structure. The best part about it is
34. 1:12that he's using these high timeframes
35. 1:14which can usually guarantee some really
36. 1:15nice swing. But let's make it even
37. 1:17simpler than that by building an
38. 1:19indicator that goes around the daily
39. 1:21trend and tradeable on the 4-hour. Using
40. 1:24LuxAlgo Quant I easily built this
41. 1:26indicator. It involves EMAs as well as
42. 1:29market structure and pullback detection.
43. 1:32What it does is that it uses the higher
44. 1:34timeframe EMA. We're using the 50 EMA.
45. 1:37You can switch it to the 200 EMA if you
46. 1:39want. But essentially it's using that 50
47. 1:41EMA off the daily timeframe on whatever
48. 1:43timeframe you use. This is the 4-hour.
49. 1:46Here's that daily 50 EMA. It identifies
50. 1:49the current market structure you want to
51. 1:50be trading which would be bearish market
52. 1:52structure. It only generates a retrace
53. 1:55setup when it detects bullish momentum
54. 1:59inside that bearish trend. Then once a
55. 2:01change of character occurs, it plots a
56. 2:0350% retracement as you can see here, and
57. 2:05then a signal when price hits that 50%
58. 2:08retracement. Here's that signal to
59. 2:10continue that trend for a very nice
60. 2:134-hour trade. It can also work on any
61. 2:15timeframe and any asset. As you can see
62. 2:17here, we have changed the higher
63. 2:18timeframe to a 1-hour with a 50 EMA.
64. 2:21Just got the change of character with
65. 2:22the 50% retracement. We end up getting
66. 2:25that signal there, a very nice reaction.
67. 2:28That's where you would end up plopping
68. 2:29your short, putting your stop somewhere
69. 2:31around that EMA there, targeting a new
70. 2:33low for that continuation. Ends up
71. 2:35creating that low very nicely. A few
72. 2:37things I would recommend is watching for
73. 2:38reaction and playing around with the
74. 2:40settings a bit to figure out what works
75. 2:42best for the asset and timeframe you're
76. 2:44on. If you want to get this indicator on
77. 2:45your chart for completely free, just
78. 2:47comment the word swing and I'll send you
79. 2:49a link.