Trading is hard until you use this 1 candle (full course) — Transcript

Full transcript

1. 0:00This one candle is all you need in
2. 0:02trading because it gives you everything
3. 0:04you need to take a trade. Direction,
4. 0:06structure, key level, entry, stop loss,
5. 0:08and everything. It's called the
6. 0:10directional candle and it works with any
7. 0:12strategy. In this video, we'll cover
8. 0:14everything you need to trade the
9. 0:16directional candle, the basics, the
10. 0:18three things that create the candle, the
11. 0:20steps, and how to use it with any
12. 0:22strategy with real examples. Let's
13. 0:24start. Now, the first thing we need to
14. 0:26understand is a W 2 S pattern which
15. 0:29creates a high probability range and
16. 0:30we'll learn why is that important. So,
17. 0:32that's a sequence between weakness and
18. 0:35strength, meaning that I would want to
19. 0:36see weakness where failing to close
20. 0:38below or we're not able to displace and
21. 0:41then a strength which is closure with a
22. 0:43displacement. Simply, we're going into
23. 0:46that direction. The moment we have the
24. 0:47sequence, that tells me that this is a
25. 0:49high probability range and we'll be
26. 0:51having a continuation from it. It's
27. 0:53going to hold price higher. Now, why is
28. 0:55that important? Because a high
29. 0:56probability range will give you a stop
30. 0:58loss, a take profit, and then a level to
31. 1:00enter from inside. So, the moment we
32. 1:02understand this, we already understand a
33. 1:04big part of what we want to achieve
34. 1:06today from that single candle. And a
35. 1:08quick thing to mention is that a high
36. 1:10probability range could be a
37. 1:11continuation, meaning that it has a
38. 1:13strength and its signature is a break of
39. 1:16structure. This is simply how it looks,
40. 1:18a break of structure, and then a
41. 1:19continuation. A high probability range
42. 1:22could also be a reversal one. Simply,
43. 1:24the signature is a market structure
44. 1:25shift and we are having a weakness in
45. 1:28the overall direction and it looks like
46. 1:30this. That is the universal pattern and
47. 1:32that's how a universal weakness and
48. 1:34strength pattern looks in candles. So,
49. 1:37we're having a weakness and then we're
50. 1:38having a strength and we're simply
51. 1:40looking for continuation anywhere inside
52. 1:42of this range going higher. And what are
53. 1:44we trying to achieve from this video is
54. 1:46combining between the W 2 S sequence and
55. 1:49the one candle we're talking about
56. 1:50today. The moment we can have both of
57. 1:52these happening at the same time, that
58. 1:55specific candle can actually change the
59. 1:56way you trade and it can give you
60. 1:58basically everything. A structure, a key
61. 2:00level, a direction, all of these things
62. 2:03just based on one candle. Now, the first
63. 2:05thing I want you to do, and that is task
64. 2:07one, is pick your best key level. And it
65. 2:09could be simply anything that you're
66. 2:11mastering. So, if we're looking at smart
67. 2:13money concepts, you could use an
68. 2:14imbalance, liquidity. You could also use
69. 2:17inducement or a block, OTE using
70. 2:19Fibonacci or just Fibonacci by itself,
71. 2:21and even chart patterns. You could use
72. 2:24these or a simple market structure.
73. 2:26Anything could work with this. For now,
74. 2:28for the first task, I want you to pick
75. 2:30one key level and you'll understand why
76. 2:32I'm doing this. Now, if you prefer to
77. 2:34trade based on only one week, where
78. 2:36everything is just based on this single
79. 2:38week, every day you're looking for the
80. 2:39same thing, that's actually what I teach
81. 2:41in H School, specifically this one, the
82. 2:44H Model 2.0, and we have three different
83. 2:46entry models inside of it based on the
84. 2:48same week. And everything around it will
85. 2:50be supporting the H Model 2.0. These are
86. 2:53some of the trades that I've taken using
87. 2:55the exact model, which is this one, the
88. 2:582.0, 10 R trade from a live weekly
89. 3:01meeting, as well as some other trades
90. 3:03also here. And these are also some
91. 3:05results trading based on the same week,
92. 3:07all having the same results. So, feel
93. 3:09free to check out H School, the link is
94. 3:11in the description. And the second task
95. 3:13is pick your time frame alignment. So,
96. 3:16based on your psychology, based on how
97. 3:18you think you're reacting to the market,
98. 3:21and also based on your schedule, if
99. 3:23you're on a full-time job or if you're a
100. 3:25full-time trader, then you pick your
101. 3:26time frame alignment. You'll be picking
102. 3:28one higher time frame and another lower
103. 3:30time frame, and you should be picking
104. 3:32these two, maybe these two, and these
105. 3:34are different ones. For example, if
106. 3:36you're more into swing trading, you
107. 3:38could be using these two. If you're more
108. 3:39into day trading, then these three here.
109. 3:42And if you're more into scalping, then
110. 3:44use the 15-minute and 1-minute. The
111. 3:46higher time frame would give you the
112. 3:47bias, the stop loss, and the entry zone,
113. 3:50and the lower time frame would going to
114. 3:51the structure, the key levels, and then
115. 3:53the entry. So, we can get a higher
116. 3:55reward to risk. Now, the candle that
117. 3:56we're talking about is called the
118. 3:58directional candle. And it's a simple
119. 4:00candle pattern that has three things
120. 4:03that needs to be happening at the same
121. 4:04time. The first one is a key level
122. 4:07respect. This candle actually reacting
123. 4:09off a key level. This could be a higher
124. 4:11time frame key level, could be the same
125. 4:12time frame key level. It does not matter
126. 4:14much. I really prefer a higher time
127. 4:16frame one. And then, we need to see a
128. 4:18sweep or a weakness relative to the
129. 4:21previous candle. So, this candle is
130. 4:22going lower. At this point, what
131. 4:24happened is taking the previous candle
132. 4:26low. And then, the third thing, and also
133. 4:28the most important one, because with
134. 4:30these two, when you don't have this one,
135. 4:32the candle is not complete. This one is
136. 4:35an engulfing or a displacement above the
137. 4:38previous candle high. This is in a
138. 4:40bullish scenario. The moment we close
139. 4:41above, this becomes our directional
140. 4:43candle, and this is the candle that will
141. 4:46change the way you trade, simply because
142. 4:48it gives you everything. And this is a
143. 4:49strong candle, because if we zoom in
144. 4:51here, you would notice that it's a
145. 4:53strong impulse going up, and that's what
146. 4:55I want to see inside the second candle.
147. 4:58It actually sets the direction and do
148. 5:01everything at the same time. So, this is
149. 5:03what we see on the higher time frame. If
150. 5:05this is a 4-hour, for example, then on
151. 5:07the 15-minute, this is how it's going to
152. 5:09look like. Now, this is probably the
153. 5:11previous candle, what it did. And on
154. 5:13this candle, we have weakness and
155. 5:15strength and displacement. These three
156. 5:17things are what creates our directional
157. 5:20candle. So, on the lower time frame,
158. 5:21this is what I want to see. And based on
159. 5:22this, we'll be trading and we'll be
160. 5:24taking our trades. Okay, so, let's take
161. 5:26a minute just looking at how to identify
162. 5:29the directional candle. It's going to be
163. 5:31on every pair, but the best ones are
164. 5:33going to be the one that moves fast. So,
165. 5:36for example, gold, we have Nasdaq, we
166. 5:38have pound yen, and we have pound
167. 5:40dollar, for example. All of these
168. 5:42sometime have strong moves that we could
169. 5:44be having everything happening in one
170. 5:46candle. and simply this is our
171. 5:48directional candle. And why? If we zoom
172. 5:50in here, we are going into an imbalance,
173. 5:53we're taking a high into an imbalance,
174. 5:55and we've already covered this a lot
175. 5:57that this is actually, even though I
176. 5:59don't trade ICT mainly, but this is a
177. 6:01strong level to trade from. Taking the
178. 6:03previous candle high and closing below
179. 6:06the previous candle low. These three
180. 6:08things told me that this is our
181. 6:10directional candle going lower, and
182. 6:12we're expecting that the next candle
183. 6:15would probably go lower. And actually,
184. 6:17we can see it also here. Notice how this
185. 6:18is not a directional candle, but this
186. 6:21one is going into an imbalance, taking
187. 6:23previous candle high, and then closing
188. 6:26below the previous candle low. These are
189. 6:28two clear ones here. Now, example one is
190. 6:31this one, which we've covered
191. 6:33previously, okay, on the examples of
192. 6:35identifying the candle. We have taken
193. 6:37the high, closing below the low. Now,
194. 6:40this specific candle here becomes our
195. 6:42high-probability range. So, from the
196. 6:45high to the low, this is our
197. 6:47high-probability range. And what I'm
198. 6:49seeing from this is that on the lower
199. 6:51time frame, and we've already understand
200. 6:53this from the past few minutes, is that
201. 6:56this is going to be looking like this on
202. 6:58the lower time frame. And this is what
203. 7:00actually creates a high-probability
204. 7:01range from here to here. So, what I'm
205. 7:03expecting is this, and then going lower.
206. 7:06How do we decide what level to take from
207. 7:09here? You could be using any level based
208. 7:12on the discretion that what do you see
209. 7:14on the market? Is it logical to go on a
210. 7:17key level other than the other? Now,
211. 7:19what I want to do here is something fun.
212. 7:21I want you to just tell me in the
213. 7:23comments that, "Okay, I'll be using an
214. 7:25imbalance. I'll be using a fib. I'll be
215. 7:27using I don't know, anything." Whatever
216. 7:30level that you're using here, you'll be
217. 7:32taking a short from. Now, what I will do
218. 7:34in this case is simply taking a fib.
219. 7:37I'll be taking a fib and I'll execute on
220. 7:40on 618. Now, going to the hourly because
221. 7:43this is our time frame alignment. If
222. 7:44this is on a daily time frame, valid
223. 7:46time frame alignment is an hourly.
224. 7:48Notice what we have. We simply have this
225. 7:50high probability range. Weakness
226. 7:52followed by a string. And I'll not be
227. 7:55looking for short from here or here, but
228. 7:57I want to see a valid retracement that I
229. 7:59want to be selling from. And notice how
230. 8:01this candle actually tells you where to
231. 8:04enter from, simply inside of here. But
232. 8:06then you can refine to your key levels
233. 8:09or base on the way you trade. And
234. 8:11another thing is it's giving you an
235. 8:13automatic bias. So, we can say that we
236. 8:17are bearish here. The bias is bearish
237. 8:19and I'm looking for a continuation
238. 8:21lower. That's without going on a lower
239. 8:23time frame and analyzing the structure
240. 8:25and anything, but it's based on one
241. 8:27mechanical candle. So, for here, in this
242. 8:30case, I'll just be taking a fib from the
243. 8:32high to the low, and I'll be selling
244. 8:35from the 618. I can see that it's
245. 8:37actually aligning to some of the levels
246. 8:40that I usually use. So, this zone here
247. 8:43is actually one that I'll be always
248. 8:45looking to trade from. So, I can take
249. 8:47from the 618 or I can refine it to this
250. 8:51one. Maybe just put it above here, but
251. 8:53you know, it depends on your performance
252. 8:55and then stop loss above the high. And
253. 8:57what I'm looking for after is maybe a
254. 8:59break of structure here or into this key
255. 9:02level or a fixed reward to risk. So,
256. 9:05let's just take three to one for today's
257. 9:07video. I'll just take to three to one
258. 9:09every trade. Playing the price action,
259. 9:11we notice that price actually goes
260. 9:12there. Let's say you pick an imbalance.
261. 9:15So, let's say you pick an imbalance.
262. 9:16This is the imbalance that you're
263. 9:18having. 50% of this is where? So, if I
264. 9:22enable the middle line, it's right here.
265. 9:24You'll be entering from here and it
266. 9:26seems that we're actually looking at the
267. 9:27same thing. If you use an SNR, then
268. 9:30that's an SNR or a key level that I'm
269. 9:33thinking price will be reacting from.
270. 9:35And if you're looking for anything else,
271. 9:37then yeah, do that and based on this
272. 9:40signature in price, just tell me where
273. 9:42you'll be selling from and would it work
274. 9:44for you or not. Now, sometime you'd be
275. 9:47maybe entering from here and price will
276. 9:48not reach that and it's totally normal.
277. 9:51We're dealing with randomness and that
278. 9:53is a normal thing. So, notice how price
279. 9:56after that just goes to 3 to 1
280. 9:57immediately. And then if we play the
281. 9:59price action, we have the bit of a
282. 10:01retracement, but if I go to the daily
283. 10:03time frame to just notice what happens
284. 10:05and it gives you more than 5 to 1. Now,
285. 10:08another example here and you would
286. 10:10notice that sometime we'd be having a
287. 10:12sweep or a weakness and then the
288. 10:15strength will be just about the closing
289. 10:17price of the previous candle. Close
290. 10:19above the body and not the wick. This
291. 10:21could work partially and I would
292. 10:23actually explain at the end of the video
293. 10:25why this would work sometime. I would
294. 10:28also go over few things that if you
295. 10:31change and if you're able to avoid some
296. 10:34of these directional candles, you would
297. 10:36lose much less. So, be sure to watch
298. 10:38that one. Just right now, what is
299. 10:41happening? This is actually live. We
300. 10:43have price taking the previous candle
301. 10:45low and then closing above the previous
302. 10:47candle high. Now, going back using the
303. 10:49replay, I'm not really sure where price
304. 10:52is going there. Okay, so we might be
305. 10:53doing it together in this case, but you
306. 10:55can't pick your key level because it's
307. 10:57all about probability. Price would go to
308. 10:59different key levels every time and you
309. 11:02can either change the key levels only if
310. 11:05you have the experience or stick to one
311. 11:07and then let the probability works in
312. 11:09your favor. We'll be going to 5 minutes
313. 11:12and notice how we have that pattern. We
314. 11:14have a break of structure and then
315. 11:16before that, a weakness. What I'll do in
316. 11:19this case is either look for this
317. 11:20imbalance or even stick to my fib. So, I
318. 11:23could take my fib from the low to the
319. 11:26high. 618 is here, but I'm noticing
320. 11:29another level that is very strong.
321. 11:30Notice how we do have a lot of
322. 11:34reactions of this level. So from here to
323. 11:37here, you notice that price has reacted
324. 11:39a lot of times. And I'm not really sure
325. 11:41where price is going to go to, but I I'm
326. 11:43thinking about more into this other than
327. 11:45this one. Now if you're using liquidity
328. 11:48or inducements, you could be looking for
329. 11:50this one. This is where you'd be looking
330. 11:52for longs and it's between 618 and 705.
331. 11:56So what I would say is in this case, I
332. 11:58would have you could have multiple
333. 12:00entries in this case or just enter based
334. 12:02on this, which I think is a strong
335. 12:04level. And after that, looking for a
336. 12:073:2:1. A 3:2:1 is around here. For this
337. 12:10one, I might not be Maybe for me at
338. 12:13least, I would always look for 618 and
339. 12:16below it. I don't prefer to enter
340. 12:19just at the beginning of the range. So
341. 12:22we could look for this one. Okay, I'm
342. 12:23really curious on what's going to
343. 12:25happen. Okay, so it actually goes Okay,
344. 12:28so that was a beautiful entry right here
345. 12:30where we predicted the inducement. Now
346. 12:32starting to go higher. If we go back to
347. 12:34the hourly, we see what will happen. And
348. 12:36then going all the way up here. Now
349. 12:38where is 3:2:1? Right here. If you're
350. 12:40taking this entry. If it was the
351. 12:42previous one, then the entry was the 618
352. 12:46and 3:2:1 would be around here. So
353. 12:48exactly price reacting almost at 3:2:1.
354. 12:51If we go to 15 minute, you would also
355. 12:52notice that we do have some other
356. 12:54directional candle. So we have one here.
357. 12:57Now if we zoom into this one and also
358. 12:59take it as an example, okay? Pick your
359. 13:02key level in this case. That is your
360. 13:04range, which is the candle itself
361. 13:05because this candle does everything. And
362. 13:08remember, you don't need to focus only
363. 13:10on one pair. You could be having
364. 13:11multiple ones. And then whenever you
365. 13:13have this specific candle happening in a
366. 13:16good placement, then you could take it
367. 13:18on any pair. Actually, we have also
368. 13:19another one here. So how about we take
369. 13:21this one first? This is a 15 minute. Now
370. 13:24we'll be going to 1 minute time frame.
371. 13:26Where could price actually react from?
372. 13:28Now, if you're using your fib, then from
373. 13:30here to here, that is where you'll be
374. 13:32entering from. However, I see this as a
375. 13:34strong level, as well as this one. So,
376. 13:36instead of entering on a 618, I'd be
377. 13:39entering from here or at this low, stop
378. 13:42loss below. Okay? So, these are two
379. 13:44entries and then looking for again a
380. 13:473:1. Now, the stop loss in this case is
381. 13:49too big. That's at least how I see it.
382. 13:52Now, in this case, it does not go there,
383. 13:54but only does partially inside, not into
384. 13:57a good price position, and then goes
385. 13:58higher. So, this one is mostly invalid,
386. 14:01and then price goes higher, and I'll
387. 14:03show you why I'm not taking or I'm not
388. 14:05keeping my limit order after this. Now,
389. 14:08into the next one, and this one is So,
390. 14:10this is the range going to 1-minute
391. 14:12timeframe, and now to see where could we
392. 14:15looking for an entry from. So, taking my
393. 14:17fib again from here to here, 618 is
394. 14:20here, and it makes sense for price to
395. 14:22maybe come here. Why is this one a
396. 14:24strong one instead of considering it as
397. 14:28a weak one? The reason is the respect
398. 14:30here of these strong levels. So, we
399. 14:32actually go to both of these levels and
400. 14:35retest. So, this one tells me that this
401. 14:36is a strong one instead of a weak one.
402. 14:39So, what I can do is still have it maybe
403. 14:41here or take a trade just from this
404. 14:44level, okay? And then continuing lower.
405. 14:47Targeting Is a 3:1 possible in this
406. 14:50case? It looks possible. I might
407. 14:52actually just keep it at 2.5:1, but
408. 14:55again, it looks like we have no retest.
409. 14:57Yeah, very close to it, but no retest,
410. 14:59and then it goes lower. So, again, this
411. 15:01is just an example of how sometimes
412. 15:03you'll do everything right, but then the
413. 15:04retracement is not there, and no trade.
414. 15:07Now, two things I want you to understand
415. 15:09about these directional candles is that
416. 15:11this is how it looks on the lower
417. 15:13timeframe, right? So, two candles here,
418. 15:15this is the candle that we're looking
419. 15:16for. If we have the retest within the
420. 15:20next candle, so this is the first
421. 15:21candle, and the second candle comes
422. 15:24down, retests, and goes goes higher,
423. 15:26then this one is a higher probability
424. 15:28one other than few candles passing.
425. 15:32Okay, so this is the second candle, and
426. 15:34then we have the third candle going
427. 15:36higher, and then the fourth candle, and
428. 15:38then price actually coming to our key
429. 15:40level that is inside of the first
430. 15:42candle. In this case, this is not valid,
431. 15:45and most likely this will fail a lot of
432. 15:47time or will it pass? And also, what
433. 15:49matters here is that if we have this, if
434. 15:52we have price going lower, and then
435. 15:54going higher, and then we have a strong
436. 15:56market structure shift, then I would
437. 15:58consider this as a bit weaker, not
438. 16:01invalid, but a weaker one. Instead, a
439. 16:04better one would be something like this
440. 16:06where we have just price retracing into
441. 16:09the level. This is a better one to trade
442. 16:11other than the reversal pattern. And the
443. 16:13last thing I want to also mention is the
444. 16:16rejection of the candle. So, let's
445. 16:18assume this is the candle going higher.
446. 16:20It closes above the previous candle
447. 16:22high, but one thing that is not good
448. 16:25about it is the wick. So, it goes all
449. 16:27the way there, and then within the same
450. 16:29candle, it also rejects. So, this is
451. 16:31more of a rejection candle, a weakness
452. 16:34candle lower instead of a strong candle
453. 16:38going higher. Even if it engulfs the
454. 16:40previous candle high, it's still a
455. 16:42weakness candle. So, these type of
456. 16:44candles I would avoid because this is a
457. 16:47sign that we're reversing. So, next
458. 16:49candle will start and go lower. This is
459. 16:51something you want to avoid. You want to
460. 16:52stick with these. So, that's it for this
461. 16:54video. Make sure to leave a comment with
462. 16:57a question or just if you think this
463. 16:58video is good, I would really love to
464. 17:00see your comments. Subscribe to the
465. 17:02channel, and make sure to check out Edge
466. 17:04School, my community, and my strategy,
467. 17:06my one-week strategy if you want to
468. 17:08learn from me. That's it, and I'll see
469. 17:09you next one.