This NEW Price Action Strategy Signals Momentum Perfectly — Transcript

Full transcript

1. 0:00This is the easiest trading setup that I
2. 0:02use live on stream [music] every single
3. 0:04day when I'm taking a buy position from
4. 0:07a support level. So, as you can see
5. 0:09here, we have candles moving down, but
6. 0:11the bodies of the candles are getting
7. 0:12smaller, indicating weakening. All I
8. 0:15need is one candle to flip and close
9. 0:18green. Okay, perfect. There's the candle
10. 0:20closure. Next step is I need the current
11. 0:22candle to create a bottom wick, and then
12. 0:24when it flips green, I'll take a buy
13. 0:26position. Perfect. So, there's
14. 0:28potentially a bottom wick. Yep. I'll
15. 0:30take a buy position right here. My stop
16. 0:33loss will go below the current candle
17. 0:35wick, and my take profit [music] will be
18. 0:37at 20 pips.
19. 0:40There's full take profit hit.
20. 0:42>> Okay, this is awesome. So, it's just a
21. 0:43momentum strategy into support showing
22. 0:45reaction off that support, but noticing
23. 0:47the candles [music] slowing as they
24. 0:49close into a nice reaction and then
25. 0:51trading off of that. Okay, so one thing
26. 0:53I did want to go back to is when he was
27. 0:54talking about the bodies of the candles
28. 0:56slowing into a support. So, here it is.
29. 0:58Bodies of the candles are getting
30. 0:59smaller going into that support level.
31. 1:00And that's a really good indication for
32. 1:02momentum slowing. So, that actually gave
33. 1:04me a really interesting idea. I wanted
34. 1:05to do an inverse PO3 type indicator that
35. 1:08isn't higher time frame, but is lower
36. 1:10time frame. And all I did was take this
37. 1:12higher time frame PO3 indicator and
38. 1:14clicked using Quant. With this, I was
39. 1:16able to invert the logic and actually
40. 1:17display the lower time frame to the
41. 1:19right of the higher time frame. So, I
42. 1:21built this with Lux Algo Quant, and what
43. 1:23I did was just pull an indicator from
44. 1:25the Lux Algo library and update it. But,
45. 1:27if you have any idea, you can actually
46. 1:29chat with the AI and build an indicator
47. 1:31to your liking. So, he was looking for
48. 1:33setups at support and resistance, but
49. 1:34with this indicator, we can literally
50. 1:36find setups anywhere. But, support and
51. 1:38resistance will always be the strongest.
52. 1:40The way the indicator works is it
53. 1:41identifies slowing in momentum and then
54. 1:43a shift in momentum, and that's when you
55. 1:45get that signal. We want to trade the
56. 1:47candle after the signal. And after we
57. 1:49get that signal, this is where this
58. 1:51lower time frame projection comes into
59. 1:53play. Because all we're looking for is
60. 1:54price to open and then immediately go
61. 1:56opposite of the signal. And then once
62. 1:58price crosses back over that open price,
63. 2:01we would take the trade in that
64. 2:02direction. So, this would not be a valid
65. 2:04setup. But, if we go back, we can look
66. 2:06for valid setups like this one right
67. 2:08here. So, in this case, we need price to
68. 2:09open and go opposite the signal, which
69. 2:11is bearish here, so we need a bullish
70. 2:13move out of the gate on these lower
71. 2:14timeframe candles. And then we wait for
72. 2:16price to close on the other side of
73. 2:18open. That's where we take our trade,
74. 2:19stop above the high, target a 1:1 or a
75. 2:221:1.5. So, here we are on the 1-hour
76. 2:24with a signal that happened at a support
77. 2:26level. Once that signal occurs, we trade
78. 2:28the next candle. And what we're looking
79. 2:29for is price to open up and immediately
80. 2:31go against the signal, and then wait for
81. 2:33price to close back over. Take your
82. 2:35long, stop below the low, 1:1 or 1:1.5
83. 2:39[music]
84. 2:40in a really strong confident play. And
85. 2:42now I can actually give you instant
86. 2:43access to that indicator I just built
87. 2:45through the Lux Algo library. All you
88. 2:46have to do is comment LTF, and I'll give
89. 2:49you this link. What you can do is click
90. 2:50get access on TradingView, or if you
91. 2:52want to add more to the indicator,
92. 2:54[music] click use in Quant, and you can
93. 2:55add anything to the indicator that you
94. 2:57want.