The ONLY Mechanical Daily Bias You Need | Daily & 4H Profile — Transcript

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1. 0:00YouTube, how are we doing? We're back
2. 0:01with a brand new video. This one's going
3. 0:03to be covering the mechanical daily bias
4. 0:05that you can trade every single day. In
5. 0:07this video, we are going to be going
6. 0:08over the introduction, daily candles,
7. 0:10and 4-hour profiles. This is something
8. 0:12that you can align every single day, and
9. 0:14if it doesn't align, you just walk away
10. 0:16from the charts.
11. 0:19>> [bell]
12. 0:20[music]
13. 0:21>> With the introduction, we have an easy
14. 0:23way to form a bias is aligning a daily
15. 0:25candle with 4-hour profiles. So, if we
16. 0:28have a daily candle alignment like right
17. 0:30here to the right, we can see we have a
18. 0:32large expansion right here to the left
19. 0:34on these two examples on the daily time
20. 0:37frame. This candle expands higher,
21. 0:39closes through the candles to the left,
22. 0:41so we're going to assume this candle is
23. 0:43now aligned for continuation. Then, we
24. 0:46align that with a 4-hour chart. Whenever
25. 0:48we have a 4-hour reversal, we look for a
26. 0:51continuation alignment, right? So, these
27. 0:53are just how you can align these
28. 0:55together. So, moving on here, we have
29. 0:58the daily candle reversals. This is
30. 1:00whenever we take out the previous day
31. 1:02low. We have a small enough wick to also
32. 1:05go into an expansion. Now, I know a lot
33. 1:06of people struggle with trading a daily
34. 1:09reversal day. They get confused on how
35. 1:11to align a 4-hour candle with that daily
36. 1:13reversal. So, let me show you exactly
37. 1:16how to do that. So, whenever you're
38. 1:17looking to trade those daily reversal
39. 1:19candles like right here to the left,
40. 1:20whenever we take out that previous day
41. 1:22low, we can align that with a 4-hour
42. 1:25profile. Whenever we make the move below
43. 1:27the previous day low, then the 4-hour
44. 1:30candle takes out the previous candle
45. 1:32low, has an expansion to the upside
46. 1:34closing a C2 candle. That's whenever we
47. 1:37assume that we are now aligned with
48. 1:39lower time frame continuation within the
49. 1:42daily reversal candle. So, we expand
50. 1:45higher closing through this candle and
51. 1:47within the candle's range to create that
52. 1:49reversal C2. Then, we look for a 4-hour
53. 1:52profile that is in a continuation. We We
54. 1:55for the wick to be created inside of a
55. 1:57key level going into an expansion. If we
56. 1:59miss this candle, we look for the next
57. 2:02candle to continue through. Right? So,
58. 2:04whenever we're looking for that daily
59. 2:05reversal, we look for that 4-hour
60. 2:08reversal profile and confirming the low
61. 2:10of day. Then we have the easier daily
62. 2:12candles, which are the continuation
63. 2:14candles. Whenever you're not focused on
64. 2:16trading that daily reversal, we look for
65. 2:18the continuation. So, we create that
66. 2:20daily reversal right here, have that C2
67. 2:23candle close. Now we're aligned on the
68. 2:25daily timeframe to create continuation.
69. 2:28We want to see this wick be created
70. 2:30inside of a key level to then go into an
71. 2:32expansion higher. So, we create that C2.
72. 2:36Now we just look for C3 to continue
73. 2:38higher. And we can do that by looking
74. 2:40for 4-hour reversal profiles and
75. 2:42continuations away from a key level. So,
76. 2:45right here we have that reversal away
77. 2:47from the initial candle's low right
78. 2:48here, closing that C2 candle. Now we are
79. 2:51aligned for daily continuation higher.
80. 2:54Right here's where we create that daily
81. 2:55reversal and go into an expansion to the
82. 2:58upside. Now the new day is opening right
83. 3:00here. We open into a key level, this
84. 3:034-hour fair value gap. We create a
85. 3:054-hour reversal profile. You could
86. 3:08either look to trade it away from this
87. 3:104-hour gap because this is where we
88. 3:11should create the low of day. So, you
89. 3:14can trade this 4-hour reversal candle or
90. 3:16you can just wait for this candle to
91. 3:18close as a reversal C2 candle and look
92. 3:21to align 4-hour profiling continuation
93. 3:25with that daily continuation as well.
94. 3:27So, whenever this candle closes, now we
95. 3:30are aligned for 4-hour continuation as
96. 3:33well as daily continuation. And this is
97. 3:35where the extremely high probability
98. 3:38trades come into play. Whenever the
99. 3:40daily is aligned for continuation and
100. 3:42the 4-hour is aligned for continuation
101. 3:45in one direction. So, here we are on our
102. 3:47first example and we're on the Nasdaq
103. 3:49daily chart. We're We're to be starting
104. 3:50out with the reversal examples first,
105. 3:52then we'll be covering the
106. 3:53continuations. And you can see right
107. 3:55here on NQ, we are taking out the
108. 3:56previous day high inside of this daily
109. 3:58fair value gap. And you might be
110. 4:00thinking, "Well, we closed this C2
111. 4:01candle, shouldn't we be looking for C3
112. 4:03to continue higher?" But you guys can
113. 4:05see that Monday opens and we expand to
114. 4:07the downside. We have way too large of a
115. 4:10day weekly wick actually to continue
116. 4:12this expansion higher. So we're just
117. 4:14going to look to trade this back down to
118. 4:16the lows. Right, so looking at this
119. 4:18candle right here, we have taken this
120. 4:20high right here. So we want to see is
121. 4:21this going to be putting in a reversal
122. 4:23candle, and we are going to do that by
123. 4:254-hour profiling. So let's head down to
124. 4:27our 4-hour time frame.
125. 4:29Heading down here to our 4-hour time
126. 4:31frame, do we put in a reversal candle
127. 4:33right here? Right, the answer is no. We
128. 4:35have a full body close. We have not
129. 4:37taken out the previous candle high yet,
130. 4:39so there's nothing here on the 4-hour
131. 4:40time frame to tell us that we're going
132. 4:42to be trading lower. Now, if we take a
133. 4:44look at the Thursday range, we can see
134. 4:46we go into an expansion higher. Now,
135. 4:48where can we target within the Thursday
136. 4:50range? Well, we have this 4-hour fair
137. 4:52value gap right here. So we're going to
138. 4:53be basically trading external to
139. 4:55internal on the 4-hour time frame. Now,
140. 4:58if we align that with the daily time
141. 5:00frame, we're trading internal to
142. 5:01external. So you guys can see how all
143. 5:04these models overlap with each other.
144. 5:06But coming back to the example, we have
145. 5:08a full body close, so we're going to
146. 5:10need the next candle to take out this
147. 5:12high before looking to trade this lower.
148. 5:14So marking out this previous candle
149. 5:16high, let's play this out.
150. 5:18You guys can see we do not take out the
151. 5:20previous candle high. But if we flip
152. 5:22over to the ES, what does the ES do? It
153. 5:26takes out this previous candle high,
154. 5:28closes a 4-hour reversal candle, so now
155. 5:30we have a valid C2 candle close with an
156. 5:33SMT, and now ES can also expand to the
157. 5:36downside to this 4-hour gap. So this is
158. 5:39where you would look to get involved
159. 5:41with C3 continuation because we have
160. 5:43this SMT. So what What we look for
161. 5:45within the next candle? Well, we would
162. 5:47want to measure out this candle right
163. 5:49here, look for the next candle to create
164. 5:51its wick inside of the 50% and get that
165. 5:53expansion lower. So, let's play this
166. 5:55candle out. You can see that the wick
167. 5:57formation is formed within the lower
168. 5:59half of the 50% and we get that
169. 6:01expansion to the downside. Now, if we
170. 6:04play the next candle out, we actually
171. 6:05take out the Thursday low, which I would
172. 6:07not be expecting for a Friday to take
173. 6:09out this low. I would have just expected
174. 6:11this 4-hour gap. But, you guys can see
175. 6:13how we can frame that daily reversal
176. 6:15candle with a 4-hour profile and get our
177. 6:18daily bias to get the expansion lower.
178. 6:21Now, here we are in our next example for
179. 6:23reversals. You guys can see that we have
180. 6:25formed a valid reversal down here at the
181. 6:27lows. We engage a relevant level. We go
182. 6:29into an expansion higher. We have
183. 6:31another expansion day and another
184. 6:33expansion day. So, after 3 days of
185. 6:35expansion, what do we look for? Well,
186. 6:37we're going to look for a retracement
187. 6:39back into the range after engaging this
188. 6:42relevant key level as well. So, not only
189. 6:44have we had three days of expansion, we
190. 6:46have also engaged a relevant key level.
191. 6:49So, this day failed to reverse away from
192. 6:51the previous day high, right? We closed
193. 6:53very close to the high, so you would
194. 6:55either wait for the reversal to be
195. 6:57formed or just wait for this previous
196. 6:59high to be taken to then trade this
197. 7:01lower. You guys can see we are taking
198. 7:03out this high and if we look to the
199. 7:05left, we have no draws on liquidity
200. 7:07higher, right? So, what do we do if we
201. 7:09have no draws on liquidity? Well, we're
202. 7:11just going to look to trade this back
203. 7:12into the range. So, to pair that, we
204. 7:15want to align a 4-hour profile with it.
205. 7:17So, let's head down to the 4-hour chart.
206. 7:20You can see right here, this is where we
207. 7:22take out the previous day high. What do
208. 7:24we have right here? We have a 4-hour
209. 7:26gap. So, this can be our target for the
210. 7:28day, right? So, once again, you guys are
211. 7:29seeing the models are overlapping. We
212. 7:31have external to internal on the 4-hour
213. 7:34time frame. Now, if we want to look at
214. 7:36the YM, we can see YM is not having any
215. 7:39SMT with this. So, we would need to wait
216. 7:42for this candle to close. So, let's play
217. 7:44this out. You can see that we have that
218. 7:46candle to close. So, we would be looking
219. 7:48for this candle to continue to the
220. 7:50downside. We no longer need SMT. We can
221. 7:53just look to enter on the continuation
222. 7:56lower. Where would we want the 10:00
223. 7:57a.m. wick to be formed? We would want it
224. 7:59to be formed within the 50% of this
225. 8:01previous candle to then get the
226. 8:03expansion lower. So, now we have aligned
227. 8:06the daily candle as a reversal away from
228. 8:09the relevant high, which is this high
229. 8:11right here, and the previous day high
230. 8:13being taken. Not only did we do that, we
231. 8:16also aligned a 4-hour profile with it to
232. 8:19have a high probability daily bias. So,
233. 8:22now we have this C2 close. Now, we would
234. 8:24be looking to get involved with C3
235. 8:26continuation. And if we play this out,
236. 8:29you can see that we get that expansion
237. 8:31to the downside. Where is the wick
238. 8:33created? It is created in the lower half
239. 8:35of that 50%, and that's how we can get
240. 8:38aligned with a daily bias for the
241. 8:40expansion lower. So, here we are in our
242. 8:42next example, and now we're going to be
243. 8:44looking at the continuations. You guys
244. 8:46can see we have a valid C2 close. Did we
245. 8:48engage a relevant level? Well, we have
246. 8:50an SMT with this low. If we hop over to
247. 8:53gold, you can see that we have an SMT
248. 8:55with that low. So, we have a valid C2
249. 8:57candle close after putting in an SMT
250. 9:00with a relevant level, and now we want
251. 9:01to see this candle have C3 expansion.
252. 9:04Where can we look to target? Well, we
253. 9:05have these two failure swings up here.
254. 9:08So, we could look to target both of
255. 9:09these highs as a draw on liquidity on
256. 9:12the daily time frame. So, now that we
257. 9:14have a daily bias, we want to measure
258. 9:16out this candle's EQ, and we want to see
259. 9:18the wick be formed in the upper portion
260. 9:21of the 50%. So, let's go down to the
261. 9:234-hour time frame. Here on the 4-hour
262. 9:25time frame, do we have a relevant key
263. 9:26level to create the wick inside of?
264. 9:28Well, we have the daily open right here,
265. 9:30and we do have a 4-hour fair value gap
266. 9:32below. But you guys can see we never
267. 9:34tagged that 4-hour gap, and we have no
268. 9:36SMT within that gap. So, the overnight
269. 9:39session actually creates a key level for
270. 9:41us to get a New York reversal to go
271. 9:43higher from. So, we can see right here
272. 9:46at 6:00 a.m. we tag this gap. We have a
273. 9:48valid C2 candle close, and now the
274. 9:504-hour is aligned for a continuation at
275. 9:5310:00 a.m. with the daily time frame.
276. 9:56So, now we have the 4-hour aligned for a
277. 9:58continuation with a daily time frame
278. 10:01aligned for a continuation, and this is
279. 10:03where high probability expansion
280. 10:05expansions come into play. So, let's
281. 10:07play this candle out.
282. 10:08And you can see that we take out this
283. 10:10low, go into an expansion higher, and
284. 10:13now we're going to look for 10:00 a.m.
285. 10:14to continue. What do we want to see it
286. 10:16continue from? The EQ of the previous
287. 10:18candle. So, let's play this out, and you
288. 10:21guys can see that 10:00 a.m. candle
289. 10:22creates its wick in the upper portion of
290. 10:25that 6:00 a.m. candle, and goes into an
291. 10:28expansion higher. Could you look for
292. 10:302:00 p.m. to continue higher? You could,
293. 10:32but we've had two candles of expansion
294. 10:34higher. So, let's play this next candle
295. 10:36out. You can see that it just goes into
296. 10:38a consolidation after having these two
297. 10:40candles of expansion, but you guys can
298. 10:43see how we aligned both of these time
299. 10:45frames for a high probability
300. 10:47continuation in one direction. We have
301. 10:49the 6:00 a.m. candle creating its low
302. 10:51inside of a key level, and we have the
303. 10:54daily time frame creating that valid C2
304. 10:56candle close after hitting that relevant
305. 10:59level with SMT, and then both time
306. 11:02frames were aligned for continuation to
307. 11:04the upside for a high probability daily
308. 11:07bias. So, here we are in our final
309. 11:09example, and we're going to be looking
310. 11:11at oil. You guys can see we have this
311. 11:13valid C2 candle close, and if we take a
312. 11:15look at the initial reversal, we have a
313. 11:17valid C2 candle close after hitting a
314. 11:19relevant key level, and then we finally
315. 11:21start to get the move away from the
316. 11:23lows. Right here on this day we take out
317. 11:25the previous day low, and go into an
318. 11:27expansion higher. So, now we're going to
319. 11:29be looking for this candle to create its
320. 11:31wick in the 50% to then continue to
321. 11:34these failure swing highs, this high in
322. 11:36this high right here. We also have
323. 11:38failure swings above which lie right
324. 11:40here. Would I expect the candle to get
325. 11:42all the way up here on this day? Well,
326. 11:43the likelihood is probably not, but it
327. 11:45also could get up there. But this is the
328. 11:48high likelihood of a draw on liquidity.
329. 11:50So, we want to see this candle to
330. 11:52continue from the previous candle's
331. 11:53equilibrium, and we can measure that out
332. 11:55right here. So, now we have a daily
333. 11:58continuation candle alignment, right? We
334. 12:01have taken this candle's low, went into
335. 12:02an expansion higher, and now we want to
336. 12:04see C3 continuation. But now we want to
337. 12:07align the 4-hour candle with it. So,
338. 12:09let's go down to the lower time frame.
339. 12:11Here we are on the 4-hour chart, and
340. 12:13what do we want to see on the 4-hour
341. 12:14time frame? We want to see a key level
342. 12:16for the candle to create its wick inside
343. 12:19of. So, we have the new candle opening
344. 12:21right here, and we make this move lower.
345. 12:23What do we make a move lower into? A
346. 12:254-hour fair value gap. This is exactly
347. 12:28where we want to see the candle continue
348. 12:30from. Doesn't matter that we went a
349. 12:31little bit below the previous day's
350. 12:33equilibrium? The answer is no. We still
351. 12:35can look to target the previous day
352. 12:37high. And what do we have right above
353. 12:39that? We have that draw on liquidity,
354. 12:41which was that failure swing. What do we
355. 12:43have down here at the lows? We have a
356. 12:45reversal candle being printed, right? We
357. 12:47have taken out the previous candle low.
358. 12:49We have a C2 candle close, and now we
359. 12:52want to see C3 continuation. So, let's
360. 12:54play the rest of this candle out.
361. 12:56Playing the rest of that candle out, you
362. 12:58can see that we get a high expansion to
363. 13:00the upside closing well above these
364. 13:02candles highs, and now we have a high
365. 13:04likelihood for C3 continuation, right?
366. 13:07Why did this candle go into an
367. 13:08expansion? Well, take a look at the wick
368. 13:10size, right? We have a very small wick,
369. 13:12and if you guys have watched my past
370. 13:13videos, you know that a small wick means
371. 13:16that we can go into an expansion higher.
372. 13:18Do we have an SMT with the previous
373. 13:20candle low? Well, let's head over to RB.
374. 13:23We do not have an SMT with this candle's
375. 13:25low, so let's head over to HL.
376. 13:27We have an SMT with this candle's low,
377. 13:29so this means that this candle is
378. 13:31tradeable. And this is actually where I
379. 13:33took an entry within CL, right? We had
380. 13:35an SMT with this previous candle low, so
381. 13:38you could look to get aligned with it
382. 13:39within this candle right here, so you
383. 13:42don't miss the expansion to the upside.
384. 13:44So now we have a 4-hour profile
385. 13:46alignment, we have a 6:00 a.m. reversal,
386. 13:49so now we look for 10:00 a.m. C3
387. 13:51continuation higher, and that is also
388. 13:53aligned with the daily continuation with
389. 13:56this C2 candle close and C3
390. 13:59continuation. So let's play the 10:00
391. 14:01a.m. candle out, and you can see that we
392. 14:03get that expansion higher from the 50%
393. 14:07of the previous candle, right? So we put
394. 14:09in that C2 reversal, expansion higher.
395. 14:1210:00 a.m. has a small wick, but it goes
396. 14:15into an expansion to the upside away
397. 14:17from the 50%, and that's how you can
398. 14:19align all these profiles and daily
399. 14:22candles together for a high probability
400. 14:25daily bias, right? So if you guys have
401. 14:27any questions, leave them in the
402. 14:28comments below. Also, if you guys want
403. 14:30to go to my website to get free PDFs and
404. 14:32the trades that I take every month, you
405. 14:34guys can head over, it's in the link
406. 14:36down below. Also, if you guys want to
407. 14:37join the enrollment for class one, it is
408. 14:40also in the description below. So I hope
409. 14:42you guys enjoyed this video. I'm going
410. 14:43to head out. Peace.