Trading Course Day 6: Timeframe Correlation — Transcript

Full transcript

1. 0:01Hi guys. So today we are going to go
2. 0:04over time frames. I think time frames is
3. 0:06pretty pretty easy to understand but you
4. 0:08have to remember everything has to
5. 0:10correlate with each other. If you're
6. 0:12using a 1 hour time frame, everything
7. 0:13under the 1 hour has to correlate with
8. 0:15that 1 hour time frame. But um let's get
9. 0:18into it. Not going to take too much time
10. 0:20on this one, but when it comes to
11. 0:22trading on on different time frames and
12. 0:24being able to cycle through time frames
13. 0:26and know what to look for, what I like
14. 0:28to do is basically mostly I mark up my
15. 0:31charts on the 1 hour or higher. Most of
16. 0:32the times I'm marking it up on the 1
17. 0:34hour and then recently, especially with
18. 0:36the NASDAQ and US30, I've been looking
19. 0:39more of like 4 hour, sometimes daily.
20. 0:41But that one hour time frame is
21. 0:43definitely going to give you a lot of
22. 0:44clarity when it comes to finding those
23. 0:46day trades and then getting into the
24. 0:48trade itself that same day to be able to
25. 0:51hold for those swings that I look for.
26. 0:53So with this being said, the 1 hour time
27. 0:56frame, let's say we have price selling.
28. 0:59We want price to sell under this level.
29. 1:01What we want to do, the only time you
30. 1:03really need to actually look for those
31. 1:06uh those correlations in different time
32. 1:08frames is on the correction and the
33. 1:10continuation. The correction and
34. 1:11continuation should be the only time you
35. 1:13should scale down. Um, so let's say if
36. 1:15we're looking at our charts, we just
37. 1:17woke up, we're getting ready to get on
38. 1:18the charts. The first thing we're going
39. 1:20to do is go to the 1 hour time frame to
40. 1:22mark out our levels. Our levels are
41. 1:24very, very, very important. If we mark
42. 1:26out our levels first, this gives a good
43. 1:28idea of where all the buying and selling
44. 1:31pressure is. So once you find out what
45. 1:33the buying and selling pressure is or
46. 1:35where it's at, then this helps you bring
47. 1:37clarity and it helps you understand what
48. 1:39you need to look for at these certain
49. 1:41levels. So with that being said, if
50. 1:44we're looking at the 1 hour level and we
51. 1:46already have clarity that buyers are
52. 1:48sitting at this level until price breaks
53. 1:50here. So once price breaks here, this
54. 1:52lets us know that there's no more buyers
55. 1:54here, right? So if this is the case, we
56. 1:58want to find that correction. So, we
57. 2:00want that correction to come and then
58. 2:02the continuation to start. But when that
59. 2:04continuation is starting to start, we're
60. 2:07going to take this one hour time frame
61. 2:08and we're going to scale down to that 15
62. 2:10minute time frame. Right? So, since
63. 2:13we're going to scale down to that
64. 2:1415-minut time frame, what we're going to
65. 2:16see right here, so once you're going to
66. 2:18see this right here, you're going to see
67. 2:20I'm going just do one hour time frame
68. 2:25and then we start to see price progress
69. 2:28back up.
70. 2:30And we'll be looking on the 15 minute
71. 2:32time frame at this point, right?
72. 2:35And you'll see price start to progress
73. 2:37back up. And then what you want to see
74. 2:38on the 15m minute or even the five
75. 2:40minute is price fail to go higher.
76. 2:44Once it fails to go higher, you want to
77. 2:46start seeing it break those support
78. 2:48levels that it had. And by this time,
79. 2:50you should already see price well below
80. 2:54this price level. So we're just going to
81. 2:55draw it in the same area. you're going
82. 2:58to start seeing price go well below that
83. 3:00level that that level that you're
84. 3:02looking to sell price under. And the
85. 3:04reason why you can now take a sell is
86. 3:06because everything correlates with each
87. 3:08other. So this 1 hour caused the
88. 3:10indication. It caused the new low,
89. 3:12right? This this 1 hour caused a new
90. 3:15low, right? So since we caused the new
91. 3:18low, this is our new low too as well. So
92. 3:20I'm going to go ahead and drag this
93. 3:22across. This is our new low as well. But
94. 3:24this is our 15-minut time frame. So
95. 3:26let's say 15 minute TF. You can even say
96. 3:30five minute TF. Which one whichever one
97. 3:32you can see it clearly on, right?
98. 3:35Whichever one you can see your swings
99. 3:37clearly on is the one that you can use.
100. 3:39Right? So with this being said, we see
101. 3:42that price ends up failing to make a
102. 3:44high. So this is our highest point. And
103. 3:47then we see price make a lower high and
104. 3:50then a lower high again. And then we
105. 3:53have this support right here too that it
106. 3:55broke. So not only is price building
107. 3:58lower highs, but it's breaking supports
108. 4:00on the 15 minute time frame. And now
109. 4:03it's breaking below the 1 hour time
110. 4:05frame. So that gives us enough
111. 4:06confluence to enter a sell trade. It
112. 4:09gives us enough confluence to enter a
113. 4:11sell trade when price starts breaking
114. 4:13that level. And then we can put our stop
115. 4:15loss here. And then we can target Oops.
116. 4:18We can target all the way down here.
117. 4:20Right? So that's what we're looking for
118. 4:22when it comes to trading this way. We're
119. 4:25just waiting for that correction to
120. 4:26happen. Looking at it on the 15 minute
121. 4:29time frame, scaling in. Well, you're
122. 4:31already on the 15-minut time frame, but
123. 4:33when you scale in, you want to find that
124. 4:36same bearish structure that you had
125. 4:38before. So, you're basically looking for
126. 4:40ICC, but on a 15-minut time frame. And
127. 4:43if once again, if you don't know what
128. 4:44ICC is, go back and watch all the other
129. 4:46videos. ICC is basically the indication,
130. 4:50the correction and continuation. No,
131. 4:53it's not breaking retest or supply and
132. 4:55demand. No, I'm not trying to make it
133. 4:57seem like this is something brand new.
134. 4:58This is not brand new. I've just broken
135. 5:01it down because I've been trading for
136. 5:03four years. And I've found that best for
137. 5:05me to make a three-step process or even
138. 5:08four steps or five steps. But I found
139. 5:10the more the less steps that I have, the
140. 5:12easier it is for me to get into a trade
141. 5:14and be able to profit off that trade. So
142. 5:16once again, I'm not saying I'm a
143. 5:18freaking philosopher. Oops. Excuse me.
144. 5:21I'm not saying I'm a philosopher. I'm
145. 5:22just telling you this is the best way
146. 5:24that I see trading. And it's a simple
147. 5:28way for me to be able to get in and
148. 5:30understand the markets. So if you want
149. 5:32to trade the same way, you can. But if
150. 5:34you don't want to trade this way or if
151. 5:35you think it's too simple or you think
152. 5:37it's a joke or this and that, then you
153. 5:38can you can just leave. But um yeah. So
154. 5:42this is the way that I take my entries.
155. 5:44All I'm doing is scaling down seeing if
156. 5:47I can find some kind of, you know, extra
157. 5:50confluence of price doing the same thing
158. 5:52that I'm looking for. So if I'm looking
159. 5:54for sales, I need to see all the time
160. 5:56frames line up with each other. So if
161. 5:58I'm I'm seeing sales on the one hour, so
162. 6:00that means that new low, this this new
163. 6:03low also means like wherever this new
164. 6:06low was c coming from. So that
165. 6:07indication part, this is where your sell
166. 6:09entry should be. So if price is still
167. 6:12correcting up, let it correct up. And as
168. 6:14it's correcting up, just monitor it on
169. 6:16the 15-minut time frame. So, I'm going
170. 6:18to show you a prime example going to be
171. 6:20an example of how I use time frames to
172. 6:22my advantage and how you can basically,
173. 6:25you know, overall help you with your
174. 6:27entries and basically knowing where you
175. 6:29need to be in the markets. So, first
176. 6:31we're going to start by looking at the
177. 6:33fact that price made this indication
178. 6:34right here. So, price is on an
179. 6:36indication right now. We can see on the
180. 6:381 hour time frame that it is breaking
181. 6:40above a swing high. So overall, these
182. 6:43are my swing highs. Let's go ahead and
183. 6:44make this blue to All right. So we have
184. 6:47our swing highs right here. And since we
185. 6:49have our swing highs here, we know that
186. 6:51there are sellers pushing the market
187. 6:53down at the this level. So since we know
188. 6:56that, we know that above this level,
189. 6:58this is telling us buyers are taking
190. 7:01control anywhere above this level until
191. 7:03it finds a level of sellers. Now, how do
192. 7:06we know when a level of sellers are are
193. 7:08here, right? How do we know when that is
194. 7:09here? So once we start seeing that price
195. 7:12is making some rejections, what we're
196. 7:14going to do is we're going to now say,
197. 7:16"Hey, let me jump on to that 15-minute
198. 7:19time frame." So when price is making a
199. 7:21new high, so as price is going up and
200. 7:24you see that it's a new high, so you see
201. 7:26it's breaking swing highs, then you need
202. 7:28to go ahead and just scale into that
203. 7:3015-minute time frame. So you can already
204. 7:32see when the correction is happening
205. 7:34because the correction could happen
206. 7:35pretty fast, it can happen pretty slow,
207. 7:37but you always want to keep note. So,
208. 7:39what you want to do is keep marking your
209. 7:41highs. Every time you see price keep
210. 7:42making a little bit of highs throughout
211. 7:43the session, keep marking them. So, this
212. 7:45one only kind of did it once and then it
213. 7:47kind of just went up the whole session.
214. 7:49So, then we can see that price gets to
215. 7:50this level and then it starts making a
216. 7:52fall. It ends up holding. So, it ends up
217. 7:56stalling for a little bit and then we
218. 7:57can see price makes a support but ends
219. 7:59up breaking it again. So, this is
220. 8:01letting us know that price is still on a
221. 8:04downtrend on a 15-minut time frame.
222. 8:05Right? So remember also as well we're
223. 8:08looking for buys. So all we're doing is
224. 8:11waiting for the structure to change back
225. 8:13bullish, right? So here we have a lower
226. 8:16high. So that means as long as price is
227. 8:19still under here, price is still
228. 8:20considered bearish, right? So continue
229. 8:23and then we can see that price still
230. 8:25makes more lower highs, another level of
231. 8:28support that ends up being broken. So
232. 8:30price is still on a downtrend. And then
233. 8:32as we continue,
234. 8:34we can see that price once again still
235. 8:37breaking support, not going over the
236. 8:40lower high. So we still have this. So
237. 8:43once again, we still have more supports
238. 8:45being broken. Price is still going down.
239. 8:47So let's wait until Okay, boom. Now we
240. 8:51have price make this low. We can see
241. 8:54here that price pushed up. So from this
242. 8:56low, buyers kicked in a little bit,
243. 8:58tried to push price up, and it failed to
244. 9:00do so. So this is another lower high,
245. 9:04right? So since we have this lower high
246. 9:06here, we can even scale down to that
247. 9:08five minute time frame if need be.
248. 9:11So since we have this lower high here,
249. 9:13and you can even see here, since we have
250. 9:15this,
251. 9:17I don't know what that was, but since we
252. 9:20have this lower high here, I'm going to
253. 9:22go back to the 15. But since we have the
254. 9:23lower high here, we now can see that
255. 9:26price has the support. Same on that five
256. 9:28minute time frame. We can see that price
257. 9:30was holding the support. We're above the
258. 9:32So remember once again, we're above that
259. 9:34level where bullish potential pushed
260. 9:37price up anyways. So now we're just
261. 9:39looking for price to change trends. So
262. 9:41remember, if price is breaking above a
263. 9:44lower high, this is letting us know that
264. 9:46there are no sellers to keep the market
265. 9:48down. So remember,
266. 9:51this is our lower high. This is our
267. 9:53lower high. This is our lower high.
268. 9:55Lower high. Notice how when price buys
269. 9:57up, it hits that lower high, sells. Hits
270. 10:00that lower high, sells. Hits that lower
271. 10:02high, sells. This whole time, price was
272. 10:04fighting between buyers and sellers.
273. 10:06Sellers kept control. Boom. Sells. And
274. 10:10then price makes a lower high, sells.
275. 10:13Now, price buys up above the lower high.
276. 10:15So, now we're going to think in the
277. 10:17mindset of, okay, price is now back
278. 10:20above this lower high. This lets me know
279. 10:22that price is becoming bullish. We can
280. 10:24see rejections to the downside too as
281. 10:26well. So now I feel comfortable with
282. 10:28being able to take a trade because we
283. 10:30are one above that 1 hour resistance
284. 10:33level. And then we are seeing that on
285. 10:37this 15-minut time frame the trend is
286. 10:39starting to change back. And even then
287. 10:41we can say target here and then overall
288. 10:44scale out to that 1 hour time frame
289. 10:47and then target this overall because
290. 10:50this is where everything started in the
291. 10:52first place. This is our new high. This
292. 10:54was our This was our swing high. Price
293. 10:56went on a correction. So if we go to the
294. 10:594 hour time frame, we can see
295. 11:02that this was a whole indication for the
296. 11:054our time frame. So this was a whole
297. 11:07trend for the 4 hour time frame and then
298. 11:09we had a correction and then we scaled
299. 11:11from the four. So let's say we scaled
300. 11:13from the 4 hour seen this indication.
301. 11:16Then we see that price ended up
302. 11:18correcting. Once it corrected, we then
303. 11:21scaled down to a one hour time frame. So
304. 11:24now we keeping in our heads, oh, the 4
305. 11:26hour is bullish because it has a new
306. 11:28high. So all we're doing now is waiting
307. 11:30for the 1 hour to go back bullish, which
308. 11:33then it did. So then the 1 hour went
309. 11:36back bullish because we can see price
310. 11:38sold off here, made a support, right? So
311. 11:42one made a support
312. 11:45and this is for the 4 hour, right? 4
313. 11:46hour makes a new high, sells off. We're
314. 11:49looking at the 1 hour, we see that the 1
315. 11:51hour made a support, tried to come up,
316. 11:53made a resistance, sellers are sitting
317. 11:55at this level. So now, since we know
318. 11:57sellers are sitting at this level, we
319. 11:59know that this is the level that price
320. 12:01needs to break above. It ends up selling
321. 12:04new low comes back up to this
322. 12:06resistance. Sellers kick in. Sellers try
323. 12:08to kick in, but it's out of session,
324. 12:10right? Notice how at the end of this
325. 12:13session, price starts to buy up super
326. 12:15strong at the end of the session. That's
327. 12:17what price did this time, price ended up
328. 12:20finishing off what it started from
329. 12:23yesterday, right? So all this right here
330. 12:25is fake fake news. Fake. It's just fake
331. 12:28volume. You want to normally trade
332. 12:30around two two hours most. You if you
333. 12:34want to trade out of session, try to
334. 12:36trade around like six. If you're trading
335. 12:38NASDAQ, maybe six, seven. But you really
336. 12:40just want to be careful and trade that
337. 12:429:30, 8 o'clock. Those are the times you
338. 12:44really just kind of want to be in the
339. 12:45markets. But overall, just stay away
340. 12:47from trading the fake volume. So with
341. 12:50this being said, we can see that price
342. 12:52finishes off and becomes bullish. So now
343. 12:56the 1 hour is aligning with the 4 hour.
344. 12:59So the 4 hour is bullish. It ended up
345. 13:02correcting. Now the 1 hour is back
346. 13:04bullish. All we do is scale down to a
347. 13:0615-minut time frame, even a five minute
348. 13:08time frame, and wait for the 15-minut
349. 13:10time frame to align with the same
350. 13:12bullish pattern. So, remember that 4
351. 13:15hour was that 4 hour was correcting.
352. 13:18What did we do? We scaled to the 1 hour
353. 13:21and we waited for the 1 hour to go
354. 13:22bullish. Now, we're on the 1 hour. The 1
355. 13:25hour goes bullish. So, our indication
356. 13:27starts here and ends up correcting here.
357. 13:30What do we do now? Since it's
358. 13:31correcting, what do we do? We scaled to
359. 13:34the 15-minut time frame. So, same thing.
360. 13:364 hour made a new high and it started
361. 13:38correcting. So, we went to the 1 hour
362. 13:40time frame. 1 hour time frame made a new
363. 13:42high. So, now we scale to the 15-minut
364. 13:45time frame and we look for that entry.
365. 13:4815-minut time frame goes bullish. So,
366. 13:50then we know it's above that four I mean
367. 13:52it's above that one hour time frame. And
368. 13:55if you want to be safe, you can also use
369. 13:57that 4 hour time frame. So above this
370. 13:59level, you can even place a position
371. 14:01here too as well because it's above that
372. 14:034 hour level. First look for this target
373. 14:06because that is where the initial
374. 14:07indication started. But overall, you
375. 14:09want to target that 4hour high. So go
376. 14:11back up and target that 4hour high
377. 14:15because whenever you're buying price,
378. 14:17you always want to take your buys to the
379. 14:19sellers. Like I said in my live the
380. 14:21other day, normally whenever you're
381. 14:23trading, let me see. Make sure I'm good.
382. 14:27All right. So, normally when you're
383. 14:28trading, you want to think about it like
384. 14:30this. You're not go So, if you have a
385. 14:32iPhone, right? So, if you have an iPhone
386. 14:35and you're trying to sell it, let's say
387. 14:37you have an iPhone 16, you don't want to
388. 14:39sell your iPhone 16 to somebody who
389. 14:42already has an iPhone 16. You're going
390. 14:44to sell it to somebody that doesn't have
391. 14:46an iPhone 16 because they're looking to
392. 14:48buy it. So, same thing with your trades.
393. 14:51You're not going to take your buys to
394. 14:52somebody who already has buys. You're
395. 14:54going to take your buys to sellers. And
396. 14:56if you're a seller, you're going to take
397. 14:57your sales to a buyer because they're
398. 14:59looking to buy your sales. So, just, you
399. 15:03know, go rewatch my um YouTube live that
400. 15:05I did the other day if it doesn't make
401. 15:07sense because I I went more in depth.
402. 15:09So, this is our setup and this is how we
403. 15:11correlated all the time frames together
404. 15:14and used it to our advantage to be able
405. 15:16to place these trades. And then overall,
406. 15:18we're going to look for that volume to
407. 15:20kick in. So once again that volume as
408. 15:23you can see New York session came in and
409. 15:25everything is following with the volume
410. 15:28and then longterm we're going to look
411. 15:29for price to get to that level.
412. 15:33Oops.
413. 15:35Yeah, it can just play through.
414. 15:37It's okay if it plays through. But yeah,
415. 15:40so overall we're just looking for price
416. 15:42to target these highs and we're looking
417. 15:46for that move itself.
418. 15:49And as we can see,
419. 15:51we get there. All right. So, with that
420. 15:55being said, that is basically how time
421. 15:57frames work. So, if you guys have any
422. 15:59questions, let me know. But that is how
423. 16:02time frames work and how you're able to
424. 16:04basically, you know, scale from one time
425. 16:07frame to make it correlate with the
426. 16:09other time frame. So, if you're going if
427. 16:11you're starting with the one hour or if
428. 16:12you're starting with the 4 hour and
429. 16:13you're marking up, you need to make sure
430. 16:15that the one hour is aligned with the 4
431. 16:17hour. and the the one hour is or the 15
432. 16:21minute is aligned with the one hour. So
433. 16:23just take your step down. So the 4 hour
434. 16:261 hour shall align with the 4 hour. 15
435. 16:28minutes shall align with the 4 hour and
436. 16:301 hour. Five minute shall align with the
437. 16:3215 and 1 hour as well. So everything
438. 16:34should align just the way I explained
439. 16:36it.