YT YouTube2Text

YouTube2Text → Transcripts → Worlds BEST NQ Scalper Reveals His A+ Trading Strategy

Worlds BEST NQ Scalper Reveals His A+ Trading Strategy — Transcript

by Chart Fanatics · 14,467 words · 752 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00welcome everyone to Chart Fanatics the go-to channel for the most in-depth strategy and
0:05concept breakdowns from the very best verified traders in the world And to kick this off there
0:12is none other than the very best trader in the prop firm space And I would say generally
0:17speaking too I don't know if you you'll take that but I'll throw it in there anyway but
0:21he has the record for the largest payout in prop film history with a total in payouts of 2.3 over
0:29$2.3 million And not only that just to top it off if that wasn't good enough in December he took
0:36$130,000 to over $1.4 million in roughly about a month Absolutely incredible And you probably
0:44already know who it is It is the founder of the lab Trader Kane Appreciate you mate What another
0:51amazing intro Yeah Yeah Yeah It's you really went out all out there So well we're very excited Kane
0:57cuz this is a new concept something that we're very proud of and I know that we're going to you
1:01know really provide so much value to the trading audience and the and the community generally And
1:05we're going to go into your strategy that basically you're using to achieve those
1:10payouts achieve the results Yeah And uh where where should we begin i have a relatively basic
1:16strategy I I think from a high level perspective I always want to see price rebalance into 50% of
1:22the range and then continue with the trend right and I built a model around that The main thing
1:26that I consistently talk about is the daily and the hourly and H4 PO3 And it's just I think we
1:31should really dig into that today because I think that's where a lot of people go wrong They really
1:35marry daily bias of I want to see price trade here but actually I'm more of a I want to see
1:40price trade from here to here if price doesn't get to where I want it to go and I don't engage
1:45and I'll just trade the other way in the coming days weeks months Yeah I think we should should
1:49really really go over that So let's go straight into it then Yeah So I think every single day
1:55when I approach the chart I I am looking for price to I guess manipulate right so if we have if let's
2:01just say the daily open is here and I I want to see price trade higher to trade lower I have two
2:07options right i can either wait for price to trade lower with my draw being higher and then look for
2:14various different things right a change state delivery an inversion I'm saying all of these
2:19words that everybody is familiar with right but typically what I look for is I look for this and
2:25then a much higher range and then there is around 50% Obviously this is wildly inaccurate because
2:3150% would be here but it doesn't look as great What I'm looking for is I'm looking for price to
2:35trade into around 50% And then trade into 50% of this range because I don't need a big move I just
2:43need to grab that base hit every single day and then I'm done I move on And if you know I take a
2:50couple of stabs at this and if I'm wrong I'm wrong That's okay I'm you know I'm wrong sometimes and
2:54that's that's fine But I I really really tried to instill into everybody that all I need to do
3:02is wait for price to trade into and we'll draw it out right is let's just say more recently
3:09we'll use recent price action Price is tumbling Yeah All I want to see is price trade into 50%
3:16of the range here and then 50% of this range Yeah And all I want is this move right here because at
3:27that point even though the trend is this is the trend if this is going to continue to great If
3:34it's not it's most likely going to reverse from here Yeah Yeah So all I need is this move right
3:43here I don't need to trade from here to here because this is a risky move Yeah you know and
3:49I don't need to try and grab this because this is fighting the overall downtrend that we're
3:55currently in Yeah Yeah So I only need to do that So how do I do that right Um and and what do I
4:01look for because obviously it's all well and good just saying I'm looking for 50% of the range And
4:06you're only trading NASDAQ right yeah I'm only trading NASDAQ Obviously I look at um I look
4:10at uh the SP00 ES for for divergence but we'll get into that Right We can take uh the price action of
4:17recent as as a as a good example right let's just say the the daily chart looks like this right um
4:31uh yeah And then this one looks like this And then this is the daily open that we're currently
4:38in Right All I want to see is price either trade And this is obviously just a daily chart is I want
4:45to see price trade into this high which roughly is around 50% of the range Yeah Right So all I'm
4:54looking for is I'm either looking for price to trade below this low Mhm And I can look to trade
5:00at some sort of reversal That is a lot of a much more risky trade because it's fighting the overall
5:06trend Yeah or I wait for price to manipulate at a significant time point and then I'm trading from
5:14here to here Yeah Yeah It's just this tiny little move that I want Why would I look at it like we
5:23can just rub this out So this is the daily time frame right yeah This is the daily time frame
5:30Sorry you do the you do the text Okay So what would I when I approach the chart I would always
5:36look at the the daily candle forming with a wick above this area Okay right if if this is going to
5:44continue typically we continue from previous day highs etc etc right so I would always anticipate
5:51that this daily candle is going to form not like that It's going to form like this and it may end
5:58up looking like that it may go all the way off the table right are you identifying fair value
6:04gap or is that not really is that just an added confluence and you're more focused on the Yeah I
6:08mean this is this would definitely like if there's an imbalance there in price i.e the delivery is so
6:12one-sided then yeah I want to see the delivery rebalance 100% It's the daily high right i don't
6:19care if this wick comes all the way down here and there's no high here I would still frame this as
6:24my version of manipulation right we manipulate above the the previous day high everybody that got
6:30short inside of this move here And forgive me I do speak quite bearish terms quite a lot recently
6:36because I have been quite bearish on the market So it's hard to just suddenly speak more bullish So
6:42everybody that got short in this this candle from previous day that is swinging that's swing trading
6:47etc etc When we get a daily close here the one thing they don't want to see is us trading to
6:52this high So the amount of orders that are being stopped at this point So these would be your stop
6:57losses here Yeah They would be my stop losses Yeah that I'm that I'm anticipating that are getting
7:02run Obviously there are some days that this just never happens right and this wick looks like this
7:11and we trade like that and that's fine There are obviously other confluences that I look for in
7:16this area but this is just like you say the daily time frame right now right i combine the daily
7:22time frame with the the H4 and then from a really from a like a very micro time frame is the the H1
7:31for where I want to see all of those time frames align and once they align we then obviously look
7:36for entries right yes and at that point so I'm anticipating daily P3 H4 PO3 H1 P3 and then I'm
7:46once these are triggered I'm looking at this P3 would power of three So accumulation accumulation
7:54manipulation distribution And so let's just let's just take this and simplify this for a lot of
7:59people right because some people there's multiple different ways that it's done Where's the the
8:05black pen hey guys just a very very quick one If you're enjoying this playbook and you want to get
8:10it sent directly to you make sure to go on chart fanatics.com put your email in and every episode
8:15we drop we will send you a direct PDF breaking down this exact playbook Or alternatively also
8:22the playbooks will be put all together with the rules over on Trade Zella That is an incredible
8:28collaboration So if you want to actually add the playbook to your Tradezella make sure you go check
8:32that out as well But let's get back into this episode Okay So some people support and resistance
8:38traders some people are range traders etc etc So when when we get price typically trade within a
8:43range like this this is just a low This is just a high Typically I'm I really subscribe to market
8:51maker theory right so at this point is where 90% of people get trapped and they're like this is a
8:59retest of the the trend of the range and we and we take a long right that's that break and retest I
9:05don't I'm not a breakout trader so I would never ever look for that I would actually frame this as
9:12some sort of manipulation back inside of the the existing accumulation Yeah To then where's the
9:19green pen you got it There you go And then I would look for this to be distribution to there Yeah
9:25So if we then visualize that as your accumulation this is distribution We got all the bends That's
9:39it And this is manipulation right how can I frame my daily candle within this perspective yeah I'm
9:48looking for the manipulation to trade into an existing high So if we use the blue this is the
9:54opening price So this is the daily candle At this point this daily candle looks like this
10:01Yeah Yeah And I want to I want to trade the wick of this candle Yeah And then we fractalize this
10:09right and the fractalizing just means applying the logic to to a different time frame Yeah Is
10:15we then look for this on a H4 Yeah So around those speaking EST times here around 6 10 typically 10
10:25is where I'm looking for I'm looking for 10 a.m to manipulate higher Yeah And then trade lower
10:29That's where if you're looking at the H4 that's where you'll notice some candles next to each
10:33other That's the range And then that as you say that 10 a.m one you want that wick above taking
10:38out those prior wicks That would be your taking out those prior highs those prior lows Yeah that
10:42is my ver that's my manipulation So everybody will always tell me 10 a.m reversal doesn't work
10:47fine then don't trade it Um but it's typically the time frame that I like to trade the most
10:52So that's where I'm most active in the chart 9 around 9:15 to around 11:30 EST because it
10:58has that 9:30 liquidity injection So it's most volatile You can grab a quick move And then at
11:0310:00 a.m it's most likely going to manipulate above the previous 9h hour high Yeah Trade back
11:09into around the 10 a.m open Statistically reverse I believe it does Some people don't believe it
11:14It doesn't But ultimately by this logic if I'm trading here and this is the premium discount
11:20that I want I actually only care for this move I don't care about this right i actually don't
11:25care if we distribute I just want to trade the manipulation into the back into the range
11:29because if it is going to continue I don't want to be caught in it And if I'm expecting bearish
11:35price I will just as soon as we sweep into this I will just trail my stop to break just under break
11:40even so that I'm I'm not losing any money due to fees etc etc So we fractalize that onto a H4
11:46we add in the H1 and when all of the time frames do something like this and they manipulate Yeah
11:52As soon as we get that sweep so say this is um so say this is 9 p uh 900 a.m sorry not PM
11:59This is 900 a.m and this is where 10 a.m opens Yeah I want to see 10 a.m open sweep above the
12:09high and once this candle flips bearish I don't want to see it continue and and suddenly become
12:15bullish again So at that point this would be my logical area to get break even or whatever
12:21And I would look for some sort of reversal in and around this area Mhm And again we can get
12:26into that in a minute around around actually the entry model but that we have charts as well to
12:31go Yeah Yeah Yeah We have we have a bunch Yeah So um and that is typically what I I look for on a a
12:38daily Once that that daily profile where I want to see price trade into is hit I will then do the
12:48exact same thing on the H4 And typically when the H4 and the H1 aligns around that 9:10 a.m
12:54they will typically both hit the same point that I want it to go to and then I'll wait for that
12:58breakdown Obviously I'm not just like oh we traded above the high I'm short or I'm or we trade above
13:04the below the low and I'm long confirmation stacking those layers that creates your high
13:08probable scenario Correct Yeah And that's what I'm always waiting for The reality of this is that
13:14um I guess the pros of it are once when it plays out typically this move can be quite
13:19quick especially to the downside and well actually and the upside once it really hits that level that
13:23we want If you were looking at the upside it would just be the exact same just flipped Yeah We just
13:27turn the chart around Yeah Literally we just flip it the other way Um and it would just be going up
13:34Like I said as of recent times we have been gone down quite a lot I'm staying with the trend Like
13:38I said I want to see price redeliver into that equilibrium that 50% of the range what the premium
13:43discount you name it whatever it is And then once we hit that I want to see it continue with the
13:47trend wait for that confirmation The pros of that are you can really catch like the highs and lows
13:53of the day Yes And you know you can grab that move and it can be very quick and you're in and out The
13:58cons of it are you are trading a reversal It's risky Yeah Right You are trading against current
14:03order flow you are waiting for confirmations but ultimately this is a riskier model which is why
14:09um for those that know me I I am very very fond of break even trades Like I love as soon as I'm
14:16in this trade here let's just say I'm risking $1K right the moment that I can claw this back is a
14:23win for me Yeah Because in my head I just lost 1K And if I can get break even here and I'm suddenly
14:28break even I no longer am down 1K in my head And then if suddenly I'm up 1K or I'm up 2K or I'm up
14:353K it's a win at that point At this point I'm now in my head I'm up 1K I'm actually up 2K because I
14:42risk 1K you know And that for me is the the real differentiator between a lot of people A lot of
14:50people only see the reward and don't focus on the risk I really emphasize the risk and get
14:56break even when I'm like either my intuition is like this doesn't look good because that is also
15:01a real thing Um but also the model is like okay hourly low 15-minute low we're now reclaiming okay
15:07I don't want to see that trade back into the open don't want to see that higher time frame candle
15:11flip bullish after we trade after that candle flips bearish and we take out the high because
15:16statistically if it does I'm I'm wrong right and that's just so technically that this process of
15:21the P3 or the AMD is then almost canceled out in a sense because the manipulation didn't manipulate
15:27yeah most likely you can then obviously look back and this is just how how it works is like
15:33most likely this is some sort of manipulation you know like on a lower time frame I don't really
15:38look for time frames lower than this for the for the AMD I always just want to see you know from
15:44a from a daily time frame this is the wick From a H4 time frame this is the wick And then an hourly
15:50time frame this is the wick I use that to like section off this area as me wanting to to get
15:57um to get short in So like I wait for that daily level to hit Great I then wait for the H4 level
16:02to hit and I wait for the hourly level to hit And this is the area that I want to get short In this
16:07case uh if it gets to the 50% of the range that's your you know original target Yeah What is it
16:11that you look for if ever if in terms of holding longer is there anything in particular or is it
16:17more so just momentum on the day is there anything that sort of stands out to you it depends really
16:21I really adopted this as like a take my trade get out of the market be done for the day And I really
16:27do adopt that mindset I think the reality is is once you start to trade bigger size you realize
16:32that like leaving this move to here is 20K but this move to here is 100K you do start to kick
16:37yourself a little bit because we're humans and we have emotions and it's like wow I could take five
16:42of these trades or I could have just held this one Statistically I've also like held trades out to
16:47lows of day and then got front run and I'm like round tripping my trade Yeah So like over time
16:53I've just realized that statistically if we're going to return it's 50% If we blast through it
16:59then I'll just I'll put my stop loss at 50% I'm that was what I was going to take for the day
17:04And if if it runs into this extreme great you know but you can't you can't play for those 2%
17:10those minus 2% or plus 2% days Yeah Because okay it's great that we've had a week and a half of
17:16backto-back minus one minus 2% days but it's very very you know irregular We typically have plus 0.7
17:24days or a minus 3 0.3% day It's like if you play for those extremes every single day yeah you are
17:30going to get chopped up If you play for the range every day you're going to get your base hit most
17:34of the time Maybe not every day every other day Maybe three days out of five maybe four days out
17:38of five Um but technically this is the area that price trades the reverses from the most
17:45Um but that does like I said doesn't mean that I don't sometimes stay in for here and trail this
17:50aggressively when we have those you know monstrous drops because someone speaks about tariffs or you
17:55know suddenly China decide to return tariffs and we drop a percent on ENQ it's like okay well this
18:02is going to continue It should just fall through here I can just trail my stop loss to here and if
18:05it comes back I'm wrong And sometimes that stops me out and then dies Sometimes it stops me out
18:10and then rallies I'm I I don't get to control that So all I can control is okay I've made this much
18:15money I'm locking that in Whatever happens happens If we continue we continue I'll just consistently
18:21look to trail that Yeah Or I'm happy with that and I'll come look at this at 4:00 when the market's
18:26about to close and I'll see where we are Yeah You know it's I'm a big believer and you know advocate
18:32of everybody wants to be a trader to work less Yes Sits at their charts for 13 hours a day and it's
18:37like and they're working more You're working more losing more and it's just mentally exhausting you
18:43know Um so yeah So that's kind of what I look for Like I said there are pros and cons to it The cons
18:48are that it is a risky Yeah it's a risky setup and it requires a lot of patience and that is probably
18:54the number one thing that 95% of people really really lack in this market They open the chart
18:59as soon as they wake up That's right I had the cons for the people Yep 100% Like I think not only
19:06the patience but because it's shorter term trading uh a lot of people assume that you don't need the
19:11patience right because that's for swing traders that's for the position Oh I wrote this the wrong
19:16way It still requires patience to let as you say the model to play out and present itself first
19:20Let's take a break for a minute there guys because I want to tell you about our preferred prop firm
19:24Apex Trader Funding Now Apex is no stranger to the podcast or even chart fanatics because we've done
19:30two incredible episode with two record holders in terms of trader Kane who got a record payout at
19:37$2.3 million at Apex And then beating that record in the end was Jadecap aka Kyle who also then
19:45has a record payout now of over $2.5 million in a single payout with Apex And that really just shows
19:52the infinite possibilities you can achieve at Apex Trader Funding Now what traders love about Apex is
19:59that you can get up to 20 accounts So whether you get the 25K account ranging all the way up to the
20:06300K account you can get 20 of those So if it's 20 300k accounts that is 6 million in tradable
20:13capital which is absolutely incredible Not only that it's only a one-phase evaluation There's no
20:20daily draw down and up to $25,000 per account It's 100% yours and after that it's a 90% split in your
20:30favor That's right At Apex you can actually trade with Wealth Charts Traderate and Ninja Trader So
20:36you can choose your favorite trading platform And not only that you will actually get realtime data
20:41included when purchasing your evaluation with Apex What I personally love about Apex is that as long
20:48as you're trading your day-to-day strategy you don't have to worry about trading the news You
20:52can actually request your payouts every 8 days and there's actually no cap to your max payout
20:58which really shows the infinite possibilities you can have at Apex Thanks to Chart fanatics
21:03you can get the best offer available at Apex They are always running sales So make sure to use the
21:09code CF That will automatically give you the best offer available at Apex The link for Apex Trader
21:16funding is in the description below So click that link use the code CF and you will get
21:21the best offer available Become an Apex trader today Now let's get back to the episode This
21:27is it's a riskier trade because it's a reversal and price typically as we can you know open the
21:33ENQ chart you can see when it runs it runs you know we're up nearly 50% from co lows probably
21:38more actually when it runs it runs and typically if you try and catch a reversal on a very bullish
21:43asset historically it's it's you know it's dumb many many would argue at least um it's risky
21:51um it requires a lot of patience so would you say most of your trades even though ENQ has been quite
21:57bullish over you the last year Um you're still looking at sells Yeah I'm been because ultimately
22:04if price is going to continue higher it redelivers into that's where that 50% thing come because even
22:09if it's going to go long you're just getting that that base hit Uh yeah And some days like price is
22:15you know really overextended for like a week and I will wait for it to come down to that 50 around
22:19that 50% and then I'll trade the reversal back into the 50% of the drop Okay You know I'm only
22:24I'm basically trading 50% of the 50% Mhm You know I'm waiting for the higher time frame pullback So
22:28that fractal nature that fractal nature Yeah So it requires a lot of patience It's risky Um and
22:35if managed correctly you will have a lot of break even trades Okay Um and that is to combat this Yes
22:44Yeah Yes That's the only reason And people look at this as a negative thing which is why I'm
22:48putting it in the cons Well I think it's important because a lot of people would struggle with that
22:52And if they're not or at least that if they're not mindful of it they may not be as aggressive with
22:57their break even as they should be So then they end up taking unnecessary loss after loss And in
23:02reality if you manage aggressively as you're meant to uh then that allows obviously for the pros to
23:06take place afterwards Yeah Like I I really you know about four months ago I heard Pax a guy that
23:12traded the pits obviously he said "You either need to be right or right out." And I I thought about
23:16it and was like "That doesn't really make much sense at the time." And I was like "Well actually
23:20he's right like you if you're wrong you need to be out of that trade as fast as you can You don't
23:24want to be in it or waiting or being emotional about oh but I have a gut feel The market doesn't
23:29care about your gut feel It doesn't care what you think And you can do that over time So I put this
23:34in the cons but I would put a green bracket around this because I actually think that this is most
23:38of the Well this is what makes it profitable is by doing it aggressively but it's just as
23:42you as you say it's in the cons because you need to be mindful of it You have to know that that's
23:47something you have to accept Yeah And uh for some people it might be hard to accept but that is is
23:51so important People that don't do this correctly that pick up my model will consistently tell me
23:56the model is not profitable Yes Right And this is where it's like the model is profitable You're
24:01just not managing it correctly because you're not looking you're looking at all the reasons it could
24:05play out and you're not looking at all the reasons it could not play out You know suddenly the this
24:09area of support over here and we can rub this out is like you're playing that reversal This area of
24:13support where price really like did this before going higher you're trading it here and then
24:19this is you know 50% of this range this low and suddenly price picks back up and you're like well
24:24that shouldn't play out Well actually this area of support is just a basic support and resistance
24:30and you could have been out of this trade net zero But a lot of people don't do that and they're like
24:35oh it didn't just getting married to the buyers It didn't play out It's wrong The model doesn't
24:39work etc etc So the pros of this though are you can catch high of the day High uh/ low of the day
24:46Yeah Um and you can really catch a monster trade if managed correctly It is highly profitable
24:54because but again um it comes back into this point It's only profitable when the break evens are
25:01managed are managed correctly and you are trading that you the the pros are the higher time frame
25:08alignment and you can manage that You can really get into this trade on a very low time frame Yeah
25:13um time frame Would you class this uh strategy and what we've gone over as sort of rule based
25:21as well yeah Yeah There are rules to the there are definitely rules to the strategy How much how much
25:27would you say is in terms of mechanical versus discretion in this i think a robot could pick
25:31up the model and with the right if I could really if I sat down and wrote the logic out correctly
25:35it could be quite man mechanical The reality is is that I think the discretion is my edge Like
25:40that is just part of it right and everybody that like I've ever taught or will ever teach the first
25:46thing I say to them is this is going to really suck because I can't teach my intuition And part
25:52of my edge is my intuition But I can teach you the model and help you learn the intuition over
25:55times But the only way you can do that is through the reps Yeah Yeah Reps is the most important The
25:59reps One thing I will ask in terms of this model is it purely obviously you're trading it on NQ
26:05Um but is have you had traders or anyone that you know who's taken that model and used it elsewhere
26:10as well i traded a bitcoin short from 100k to to literally to 80k for this exact so you could say
26:15I don't know if the right term is fractal but it is something that can be applied elsewhere as well
26:19multiasset like because ultimately I like I said I subscribe to market maker theory the market just
26:24across the board from a liquidity standpoint means that price should always be offered at fair value
26:29which means it should be distributed into 50% of the range yes and omally that doesn't mean that
26:33price doesn't can't can't just suddenly go 50% of the range it could just trade all the way to very
26:39close to the new low and then redeliver into 50% of the range right and we've seen that you know
26:43like euro euro USD for example it trades you know sits in this range forever breaks out everyone's
26:48thinking it's going to the range low and then it just returns to the range EQ and it's like okay
26:54what do you do you just not sit in that trade and wait for the EQ Okay you probably look for
26:56a fractal range inside of there that you then look to trade So the pros for me right are you
27:01can manage the train the the the trade on the it's basically multiple time frame but it's
27:06fractal You can get into a low time frame trade There's a con to that is that it's more risky
27:11Yeah you can get into a higher time frame trade They're higher probability but again they're wider
27:16So they're more swing trades right you can't trade them on more futures assets It's more
27:20um like lowle leverage products um that you would look to trade Um so it's multiple multiple time
27:26frame Um so it suits both traders Some traders I get come to me and go I got a real job I don't you
27:32know I can't be at the market all time every day Well the model works on a higher time frame I took
27:36a Bitcoin short based on the daily literally the daily chart I didn't look at anything else just
27:40the daily chart and I took that and it ran minus 20% You know so if you necessarily can't be active
27:45during that time window because of the fractual nature of it is still not a problem You just take
27:50that viewpoint higher Yeah And therefore able to swing trade/position trade Correct Yeah Ultimately
27:55like I said I subscribe to market maker theory I really believe that the market just delivers
28:00into 50% of ranges and and redelivers into a 50% of another range And sometimes that won't
28:05hold and it will just go lower and it's a higher time frame range all the way on the left Right i
28:10built a model around just grabbing that 50% to 50% And that's all I need And if I do that on a
28:16lower time frame I can look for a trade most days Not every day is a trading day of course just like
28:22everybody But I can look for that trade most days And if it's managed correctly I will most likely
28:28get at minimum a break even trade or some sort of profit And if price is very you know I'm grabbing
28:34that reversal based on that confirmation and price just reruns the high it'll be a loss But
28:38statistically over time it's profitable And that's you know you only get that from doing
28:42the reps like we said Yeah I love that And in terms of um off the back of that what would you
28:47look for entry- wise is that a confirmation based entry that you look for or Yeah So I look for uh
28:54because I'm trading the indices The indices are very you know they're very well aligned
28:59So if if ES let's just use ES for red um ES is red NQ is green If NQ does this right mhm ES should
29:09also do this right they may not look completely like in terms of you know this one's a bit lower
29:17but they took the same low For me this is a well delivered market okay right I don't like this I
29:24look for the divergences between the two because it shows relative weakness on a single asset
29:28Right Okay So and we and we can go I can actually show you an example about
29:32this Um I can show you the exact example and we'll draw the entire chart is that
29:39um ENQ rallied again this is say this is 9:00 a.m This is 10 Yeah And then trades lower trades
29:49higher and then does this and then trades into around 50% of that range Okay But at this specific
29:56point ES does this Okay So ES runs this existing high So then that happening that divergence is
30:11then telling you the the weakness on ENQ is much stronger than ES at that time Yeah So I I care
30:20more about this chart from a volume perspective because this chart has the most volume It's
30:25the most traded asset in the world other than bonds right so if this is going to just do this
30:34it can do that And this could just do this as well
30:38right it's getting very uh very crowded I love it So it could just do that Mhm I my invalidation for
30:49this is that why because this shouldn't then go on to break this high Yeah This should continue below
30:57here Okay Right And this is what I'm looking for again 50% of this around there Yeah Right
31:05I'm looking for that And then I'm looking for a breakdown in and around this area Okay more so
31:16this area because it's the wick on the hourly time frame Yeah I want to be positioned in this wick
31:26Well obviously this doesn't look like that but you get the point right i want to be positioned
31:30in here in any capacity So with that in mind I more or less just look for an imbalance in
31:37here that has impulsed higher Mhm Right And then I want to look for an entry once we once this SMT
31:46SMT divergence again call it what you want It's just a cracking correlation Um trades below this
31:52level I will either limit a re a retap into this area or I'll sell stop this with my invalidation
31:59here targeting 50% of this Yes there are other things that I could that I use to have higher time
32:07frame targets or actually we're most likely to trade into the low But the basis of what I teach
32:12is this right because you like I keep saying you only need this move from here to here You don't
32:20need from here to here You don't need that And most of the time this is just a motion hoping
32:26this plays out you know it's not doesn't have the logic of it continuing higher And like I
32:32said keep we'll keep saying it Everybody will look at why it wants to play out over here and not look
32:37at this as the reason why it won't play out Um so yeah So ultimately just to confirm right mhm
32:44Divergence a uh a weakness in market structure Yeah In this in this example
32:55it's an inversion Yep And an inversion is just a previous gap that should be used
33:02as support gets traded below and used as resistance and used as resistance
33:07Beautiful Yeah Yeah And then um and then just this is basically everything Higher
33:14time frame pre higher time frame premium discount that H4 PO3 So higher time frame
33:22uh P3 Yeah So in this instance it would be the the
33:29daily plus the H4 Yeah Yeah And then at that point my trade would be entry
33:42uh at inversion Oh my handwriting is awful No it's great At inversion and then uh my stop loss
33:55Oh that was awful At uh divergence Yeah Oh yeah At divergence Um and then my my TP is just
34:08um% 50% Love that Would you say uh one maybe not a con but something to be aware of do you think
34:16it takes certain adjustments for some people if they haven't been maybe utilizing you the fractal
34:21nature of the markets and that higher time frame sort of viewpoint so for example in this case the
34:26P3 from daily 4hour obviously still looking at POV um POV P3 sorry for the H1 Y um do you feel like
34:34sometimes people have to get used to being able to see the market in that way by keeping still
34:39keeping in mind the the daily when they're on the H1 for example and the 4 hour yeah I always advise
34:44people to to where do you if you had to tell me right now where you want to see price manipulate
34:50into on the daily chart where would that be mark it out Just create your little box Now do the H4
34:56Now do the H1 And now just create a box where they all align and figure out that that's where you
35:00want to see it manipulate You need logic for doing that The logic for me is the range right that
35:06range And it's understanding there are obviously there are some other confluences like I say that
35:11you that I use to say okay we might trade a little bit further than the 50% of the range It might be
35:1560% It might be 58% I don't look at it that way It's just 50% zero 100 Once we're above 50 I'm
35:22looking at that breakdown from there because that's where I'm looking at that And then I
35:25fractalize that from a okay well if the H4 candle frames in here I want to see a push above the
35:31previous H4 candle And that H4 candle has four 1 hour candles So I want to wait for that push above
35:36and that break down So then you're trading the H1 PO3 inside of a H4 P3 inside of a daily P3 And if
35:43you combine them you can get much larger targets Why because the daily P3 should technically that's
35:49the high of the day it should technically go to the low but for most people this is enough if you
35:55want to swing trade and do all that you have to really really understand the P3 fractility very
36:00well do you feel like the best way to start is to start with the base hit yeah over time build that
36:05confidence with that base hit get the results with that base hit as you're doing so you will start to
36:10pick up on more of that higher time frame you'll start to pick up on when does price actually play
36:15out for the higher time frame over time But what a lot of people unfortunately do is just try and
36:20focus on this straight away before they've even got the base hit done Look I'm a big believer in
36:24base hits right base hits have made me millions of dollars in the market Um and like I say if managed
36:30correctly you can really avoid a lot of silly losses and get break even days maybe a little
36:36bit positive days which for a lot of people still hits your daily requirement for most prop firms
36:41for payouts etc etc Everyone would like to trade the high and the low of the candle Yeah If you
36:46could do that you would be a trillionaire right so the reality is you can't do that And you may catch
36:52it once in a blue moon or once a month or twice a week I don't know Or not twice a week twice a
36:56month you know twice a week you're probably still a billionaire You may be able to do that but over
37:01time if you consistently look for that you'll take a lot of losers So it's better to have a set of
37:06rules that say "This is where I want to see price trade to." And if price is really you know moving
37:11or hey the volume is insane here hey trail your trail your stop loss move your TP target to the
37:18extreme and aggressively trail that stop loss And who knows you might get 20 30% more profit
37:23But don't be upset that it didn't hit the extreme because it's still past your POI that you should
37:27be out at Yeah Yeah And that's your line in the sand We go there for any reason you're out You
37:32want to see it really fall through Again to to quote Pax you want to be right or right out Yeah
37:38So but yeah this is what I look for And then like I say you fractalize this and say this is the you
37:44know this is the daily open You just imagine that the H4 opens the same way You want to see
37:50the exact same thing The hourly opens the same way You want to see the exact same thing trading above
37:54that previous hour that previous day that previous 4hour candle because when they all align and it's
38:01the 4hour wick inside of a daily wick inside of an hourly wick when that next hourly candle
38:06opens bang it will just fly Um so yeah let's take a break for a minute there guys because I want to
38:12tell you about our incredible sponsor Tradezeller Tradezella is the number one trading tool in the
38:18entire trading industry Tradezella allows you to become a more profitable trader Allows you to make
38:24immense progress as a trader no matter if you're a beginner or an advanced level trader because
38:29it makes journaling easy It makes journaling something that is fun and enjoyable and something
38:34that is interactive So no matter if you're a crypto trader no matter if you're a futures trader
38:39no matter if you're a forex trader no matter if you're a stock trader all you have to do is select
38:44your broker your platform of choice and connect it to Tradzella and it will automatically sync
38:50your trades and pull all of that data onto the dashboard making journaling and finding your edge
38:56and adapting your edge so easy In collaboration with Tradzella and Chart Fanatic specifically
39:03we are actually getting the playbooks from the episodes that we're filming with these incredible
39:08verified traders and adding them as playbooks onto Tradezella So you can actually go on there and see
39:13the rule sets already predefined So make sure you check that out as well Now you can actually get
39:1910% off your monthly subscription using CF10 on Tradella right now But more importantly I would
39:26say CF20 for 20% off your yearly subscription with Tradezella The links for Tradzella are in the
39:33description below So make sure you go check them out Use CF20 Get 20% off your yearly subscription
39:39Become a better trader today Now let's get back to the episode Love that Hola Let's take a look at
39:44the charts now Um now that we've done all the the visuals and explainer I'm sure people are excited
39:49for that So we're in the chart now When I when I approach the chart I will go on the daily time
39:54frame like we just discussed that daily that daily fractal P3 I will mark out the current high the
40:01current low I will see that since trading into this low we failed to trade we failed to trade
40:07into 50% of this existing range Yeah And then from a again a much much higher time frame perspective
40:15Um sorry this is the high Yeah there is uh no leave it Um we are currently in a much higher
40:26time frame 50% Mhm Yep So right now typically I am looking for some sort of reversal from here up to
40:36here Okay Right So from a now we you know taking off the whiteboard onto the chart Yeah Overall I'm
40:41waiting for some sort of reversal characteristic on a daily time frame to then have my bias that
40:47we're looking that we're looking to trade up into that area Right let's take these drawings
40:53off So now we just drop down to the H4 Right and we'll go over a trade example from yesterday Right
41:01so if I just replay uh if I just replay this to yesterday So Thursday 10:00 a.m We'll do it from
41:15Thursday Uh this is Wednesday so we can just leave it on Wednesday right um Wednesday 2:00
41:28I would then go to that 4 hour and then I would mark out this high This made a high So if we were
41:33to mark out all of the four hours from the drop right This was how how it happened We
41:38didn't we failed to distribute into EQ We then make a new low So this then just becomes this
41:43We failed to distribute into EQ So this becomes a new low So you can see that we've built up an
41:48engineered liquidity around that resting EQ now Yeah So this is the overall 4hour r that
41:54that daily range Sorry So then from that 4hour perspective when we make a new low
41:59when we consistently do this and we just make a high make a low make a high make a low what
42:04it's delivering in is to 50% of this Yes Yeah So if we just go ahead and mark those out right so
42:10from this just put the magnet back on If we deliver from here to here you'll notice 50%
42:16some sort of higher time frame sweep that 4hour PO3 is in here Yeah You can see that with the
42:224our candles next to it sort of the range then the wick and then obviously the manipulation
42:28the distribution If we just drag this to the side everything we just discussed is in in here
42:34that 4hour that high that low 50% of the range 4hour P3 And then if we fractalize that again
42:42H1 I want to trade in here Oh and look I have an indicator that automatically prints S&P So
42:50there's your divergence There's my divergence So at that point I'm looking to trade this
42:54This is on this is this is on Monday actually So again before we've even gone and I'm just using
42:59I'm just immediately I've just jumped to that just from drawing this premium discount range
43:03It's not even the trade we're going to show Right So again here we failed to we did we
43:08fail to distribute into it yeah because we made a new low Right So here Tuesday right again 50%
43:16Now what are we looking for if we fractalize that premium discount right from here to here 50% we
43:24trade into it that H4 wick that PO3 you know again we'll just get to the the Thursday bit but I'm
43:31just showing you how I mark out premium discounts right so Thursday uh yeah this is Thursday at 10
43:38Okay So we have previous day low Yeah Yeah So this is uh sorry not previous day low This is previous
43:45previous day low and this is um previous day low So you got two from Wednesday right so ultimately
43:53from from this drop to here right that's the the current when I'm approaching the chart on
43:59Thursday at 2:00 Um yeah at 2:00 I would then go to a lower time frame This little gray box here
44:10is just marking out the Asian range It's the most lowest probability conditions I just mark it out
44:14as a when we sweep one of these areas typically we reverse from it Everyone should be familiar with
44:19the Asian range If not you can Google it It's very very very well documented about what it
44:23is Right So this is a similar concept in terms of like uh building up a range liquidity either side
44:28Building of the range sweep reverse and typically this doesn't sweep it today but it reverses right
44:35what happens is we end up sweeping that We get that divergence at 2 o'clock which is
44:41what the 2 am EST which is when I consider a London open Yeah ES sweeps that because of
44:46this little red line that prints It sweeps it and then it reverses So this is a good example
44:50of accumulation manipulation distribution to the downside right i'm not trading this
44:55because it's low probability conditions for me right so where is price most likely going
45:00to end up based on this and this mhm We can also just mark out because we would also mark
45:07out the hourly I can I can tell you that this is the hourly range So if we mark out this low
45:14uh right I refer to this as the logical liquidity target which is basically if
45:20we're marking a premium discount range is the first high or low in thatif that 50% drop Right
45:27so I want to see price trade into that area Once we hit that area overall I'm waiting for price
45:33to show a characteristic for us to reverse And ultimately what I'm looking for is I'm looking
45:38for that characteristic to form Right do we get something what's the time let's just mark this
45:45out Again this will just consistently move until we hit that 50% of that of that range Right do we
45:54get it do we get it nope We just keep going lower Right again some people would draw it
45:59from here the premium discount from here to here But because ES actually took the high here in my
46:05head this high right here is the high Okay Yeah So I don't care that this is the high or I don't
46:10care about this one I care about this is because this at 2:00 that's where you use that swept that
46:15liquidity Where I use that divergence because in my head from a logical perspective I'm treating
46:20this as that this liquidity has been swept and we should not return there Okay So that is the
46:25new dealing range Premium discount range that I want to see right so we've traded way into
46:31discount right or premium if you're well it's discount because it's 50% lower Right And then
46:37what I'm waiting for is I'm waiting for we frant ran previous day low Yeah Right So to me this is
46:48just engineered liquidity Yeah We're now inside of premium premium right we've got that 10 a.m
46:57right so if we mark out the previous 9:00 a.m high which is right here that's our hourly PO3
47:06So right now this is the area that I want to see price manipulate into and trade away
47:11But we're skipping something So what is that that is the the daily Did we take a previous
47:16day high no I'm still expecting to trade into some sort of low right and then if we go on to
47:22the 4 hour and again it's probably just going to skip forward but we mark out that previous
47:264hour high And then if we go back to the hourly that previous 4hour high is resting just around
47:32the EQ Yeah Right And then what I would do is I would say okay we've hit that hourly high at
47:389 at 10:00 a.m Right Now what I want to see is I want to see price breakdown This is the hour
47:46This is the hourly P3 What I'm looking for right Hourly P3 That is aligning with the H4 P3 Yeah
47:56Yeah This is at 10 So right now we also have our eye on 10 a.m high So as we approach into that
48:0611:00 area so this is 10:30 So we can just keep moving this There's no confirmation breakdown
48:12right now right okay we trade lower The H4 PO3 is looking good But in five minutes time because
48:21I'm looking at the bottom of my screen right now down here in five minutes time this candle is 1055
48:27In 5 minutes time if I look at this do I want to see a reversal from here or do I want to see this
48:32high taken most most of the time I want to see this high taken Okay but I would wait for some
48:40sort of confirmation here right so I would wait I would typically drop to a lower time frame at
48:47this point once this SMT prints because it's it will show you a dotted line because it's
48:51saying the ES is trading above this high Okay we have dual SMT so or dual divergence which means
48:57there's divergence at the lows and divergences at the high which means the range is getting tighter
49:01And now what I would look for is I would look for this inversion that's that either to hold Yeah or
49:09us to take the high follow through and then trade back through this inversion and my trade would
49:15look like this Right so at this point you would have a sell stop So at this point I would have I
49:22would be anticipating and again this is again due to my intuition is I'd be anticipating that this
49:28high would would hold right again SMT SMT at the low to to here This would be my logical liquidity
49:38target And again a lot of people are going to not really like this but this trade isn't the sexiest
49:43of trades right again this is what I would look for right now This is what my sell stop would
49:48look like right anticipating that if we reverse from here this this will confirm the divergence
49:53between these two Yeah Right What happens i'm in this trade now And at that point this will
49:59now be my stop loss Okay Right And then price will you get you get a chance to enter because
50:06price trades and we can just zoom in Price trades closes below the inversion right here You get to
50:13enter here and you get to enter here Right so this is right now we are entering inside of that 4hour
50:20wick Right because this is the previous 4hour high and we're still in that 4hour candle We don't get
50:25a new 4hour candle until 2 o'clock Right so we're entering inside of that 4hour wick And also you
50:32have to remember where did 11:00 open up right here We are also entering inside of that hourly
50:39wick Yes Right So the H4 previous 4hour high and the new hourly candle opened This this as
50:48of right now is um is the area that I would want to want to go break even right because this hourly
50:56candle just flipped bearish and that's just really showcasing the aggressiveness of that Correct Even
51:01Yeah I mean this is not even ran This has just ran one R It's just purely coincidental that it's
51:081 R Yeah It's I don't care that it's 1 R I just care that this hourly candle was flip break even
51:13Uh slip bearish Sorry It's hard to show that with trading view replay mode So it's a bit difficult
51:18Right So but if you envisage that let's just drag this out of the way The 11:00 a.m candle opened
51:26here Yeah And this is where it it opened And now this is what the candle looks like This is the
51:32wick This is the body Right So this would be my trade and I would be out Right And omally I get
51:39out of this low Yeah I can tell you what happened Trump tweeted about tariffs Uh tariffs pausing
51:45Yeah Right Um but if you missed this trade for any reason would you enter here now no because it hit
51:53discount and ultimately we're anticipating the high The reality is I closed my trade right here
52:01I don't care about this Yes Because if I for whatever reason was break even here and I was
52:06aiming for this low I would have got stopped out and then the move went went against me Yeah So I
52:12would have missed out on Okay A monstrous move but I still caught 381 ticks on one contract
52:22That's quite a lot of money right 381 times five I'm bad at math We know that right it's a lot of
52:28money right i'm trading more than one contract That is enough for a good amount of time And
52:33and again we can show you my trade seller in a minute for the trade that I took there and and
52:37how much that uh how much that looks like right so ultimately and that is that that is the trade
52:43from uh from Thursday So fits that 4hour hourly P3 Yeah trading it back to discount and I'm done
52:52This trade this trade runs like really really runs like you know I could I could have stayed in this
52:58pretty much all day until the close You know the closes all the way over here Mhm All I need is
53:03this tiny little move in the market waiting and waiting I could have tried to long the bottom
53:09here here here here here I could have shorted once we just trade above this high No confirmation And
53:14this could have ran all the way up here Yeah just like it ran all the way down here before trading
53:19higher right i don't I don't like to enter around the open as much as possible I entered twice this
53:26week and I took two losers around the open So on this specific day I avoided this move Okay And
53:33also there's no confirmation This is if you could rate it out of 10 this is a 12 plus This is a 12
53:40setup It's the best ever SMT 4hour high trading above into discount with that inversion straight
53:47into discount and if you really wanted to get back in you could I would never ever advise anyone to
53:52do it especially after something driven like Trump tweeting about tariffs It could have just
53:58gone skyhigh You know we got we got a monstrous run over here because of some tariff tweet and it
54:03was just like the thing is by doing the base hits over and over for the time that you do then feel
54:07the intuition you feel the market's in the right place and you decide to hold you've already banked
54:12a buffer to do that Exactly You know once Yeah exactly Once you've done the reps enough time it's
54:17like hey I actually know that this is or I have a gut feeling it's going to play out I've made
54:22a bunch of money I can take a bit more of a risk That is purely purely intuition It's not it's not
54:28anything of like okay there's some confirmational factors there but it's betting on your your draw
54:33more often than not this is purely just the model the low as you said that that's more than enough
54:38to make a good income and it might not be where you start you might start with micros you might
54:42start with a smaller capital but it's a through focusing on the the process and focusing on
54:49uh the strategy and sticking to it and getting those basics in that's the only way to scale
54:53right you have to start somewhere and build up that repetitions build up their repetitions and
54:57then that's the only way really to scale Let's take a break for a minute though guys cuz I
55:00want to tell you about our incredible partnership with propfirmtrader.com Majority of you out there
55:05are prop firm traders You're using prop firms to leverage your trading skills to be able to
55:10get more capital and to be able to absolutely change your life So what's important to you to
55:14be able to find the right challenge for you with the best firms and most of all the best
55:19prices And that is exactly what propertrader.com does propertrader.coms allows you to compare prop
55:26firms be able to find the best challenge suited to your trading style and get you the exclusive best
55:32discounts in the entire industry so that you're paying the cheapest price possible for your prop
55:38firm challenge So on proper.com you'll be able to use filters to be able to do that and find
55:42the exact challenge for you be able to find your favorite prop firms On the futures side we have
55:47the biggest futures firm in the entire industry with Apex Trader funding giving us the best
55:52discount possible Right now it's actually 80% off using the code PFT On the CFD side on Forex side
55:59we actually have a brokerbacked prop firm called Atmos Funded backed by Torex and they are giving
56:06an exclusive offer at 50% off all challenges again using the code PFT So make sure you go
56:13do that And not only that another exclusive offer only on Propirm Trader is with Bright
56:19Funded Bright Funded are giving up to 30% off all challenges and a free account of the same size on
56:25your first payout And on top of that you can get an exclusive offer only on propertrader.com with
56:31Alpha Capital on their one-step challenge 25% off using PFT1 So make sure you go and do that
56:39And there's so many more exclusive discounts only on propertrader.com It is the go-to site for all
56:46proper traders out there And one thing I'm really excited about that I personally helped to organize
56:52was the giveaway of giveaways the 7figure giveaway just through purchasing your challenges for the
56:58best price through propertrader.com Every single week you will automatically be entered into an
57:04incredible giveaway a collaborative effort across all of these firms on screen between 100 to 200k
57:10accounts over seven figures It means that one person every single week who's made a purchase
57:15through proper.com will be getting seven figures in challenges that could completely revolutionize
57:21your trading journey Again all you do is for any of the firms on propertrader.com use the code PFT
57:29at checkout and you will automatically be entered every single week The link for propertrader.com
57:35is in the description below Now let's get back to the episode Yeah but even if you took this
57:40with one micro it's 200 bucks you know is that it's not in a day right in a day Like in a day if
57:45you want to class the actual time let's just say it's a day right because it's you waited around
57:49you were patient you did all those things You you made 200 bucks Like where can you make 200 bucks
57:54by clicking a button and being a bit patient and practicing all of those things it's really hard
57:59to just get that out of nowhere So a lot of people go and work a very manual labor job for 12 hours
58:04a day 10 hours 9 hours a day whatever to make that money We do it and okay fine You may have
58:10some losers occasionally on the days but over time you're going to make more than 190 bucks
58:15over time because you take one trade you take two true two trades that scales and scales and scales
58:19then suddenly you're making you know daily wages in minutes and weekly wages in hours you know So
58:26um and then also so this is obviously around the open So uh I'm just going to remove all
58:31my drawings again So that was that trade And then on Monday I actually took a a long
58:38uh no no I didn't actually That's a lie Okay So we get a drop at Monday at 9:30 We get a drop
58:44and then we get that push up into discount here Right Again we just did the daily and the 4hour
58:49the fractility But this is the 9:30 drop Big build up throughout Asia We have a big drop
58:56here This is really showing that Asia side now where we've taken the high then we could target
58:59the low as well Took the high target the low Yeah So if we just mark out this to here Yeah
59:05Aiming for that 50% 50% pull back into 50% to then trade lower and then the Asia low sits above that
59:1250% as well Exactly Yeah So um again I'm just going to We obviously know how that plays out
59:19because so again right so a lot of people could just take this inversion right here right like I
59:33said 50% that breakdown What we're really missing is the key piece sometimes is that that divergence
59:39right so if we break this down H4 trade above the high This is the H4 PO3 The daily P3 looks
59:48like this We're trading above that daily high Yeah We're trading above that that 4hour resting high
59:57Yeah And if we go to that hourly it happened at 9:30 We manipulated higher and then traded lower
1:00:03again I know some people that caught this trade from a very low time frame perspective where you
1:00:08know they sell stop like this inversion with this being some sort of SMT and they sell stop it and
1:00:13they get into it and it and it falls off We can't catch those every day and I didn't personally
1:00:17catch it Right So based on this this 5 minute I'm waiting for that SMT to form Yes Right And
1:00:28it's at 3 minute Right waiting for it to form and as soon as we close back below with that
1:00:38SMT Yeah All I'm looking for is the first low inside of that discount I wouldn't necessarily
1:00:50include this This trade is definitely not the sexiest of trades It's 1.26 right but it happens
1:00:57more or less straight away ah this was actually the one that I got stopped on and then I re and
1:01:03I re-entered over here because we got again we get that confirmation of SMT and that happens
1:01:07sometimes right and based on that it's just it is just the laws of probabilities right I would
1:01:13always just leave this because it's so such a low risk-to-reward trade I would always just wait it
1:01:18out and then with the second trade uh I would sell stop this bas area because my bias doesn't change
1:01:28the only way that this changes is If we continue higher right and I would take I would always take
1:01:32two You got SMT then off the back of that as well Yeah Because this this was SMT Yeah Yeah And then
1:01:38this went on to create SMT again right with NQ taking the high and ES failing right and then I
1:01:45would just sell stop this this trade at this point because of my risk-to-reward and I got stopped I
1:01:51would just a I would aim for a larger target But more or less because it's on the three minute as
1:01:56soon as we take out the 15minute low yes I would just be break even Okay Right So as soon as we
1:02:02take this low on this I'm now break even My risk is nothing I'm not risking anything If I now get
1:02:10stopped to break even on the day my risk-to-reward is nothing And that was that And that was it And I
1:02:15walked away with a loser on the day You know not every day can be a winner Um and we can go from
1:02:21there That is the the the trade And then again in the PM session and we'll come on to it Again
1:02:27in the PM session I did a I joined a stream with a one of my one of my friends a guy that I you
1:02:31know I trade with sometimes in terms of I check in on his content He does a PM session every
1:02:36single day Um and then later on at like 2:00 with that H4 PO3 again uh we took another short and I
1:02:43literally finished just above break even on the day on Monday actually No it was quite That's a
1:02:48lie It was quite a big day That's a lie That's a straight up lie Um but we can go into the trades
1:02:52report There are quite a bit of break even trades in there and we can again we can we can show that
1:02:57and there are also some losers right but the the number one thing is that I that I always wanted
1:03:02to highlight by coming here and having this is that if we just respect 50% of the ranges and
1:03:09the ranges are marked out correctly Yeah We can really really really manage our risk You
1:03:13know I would always take this trade with this SMT We don't trade into 50% Well we trade into
1:03:1950% here but because of that this is the first low in discount I would never ever go break even
1:03:25on this trade because it's bad or um and I would just accept my risk Yeah And then I would always
1:03:30know that I will get another shot at it or I'll be wrong and I'll walk away you know So I love
1:03:35that It's great to highlight as well Yeah And um just before we move on to the trades a bit could
1:03:40I just ask in ter chart could we just see the P on the daily okay So the Bitcoin it's actually
1:03:48already on my chart right so okay beautiful So this is just a very higher time frame It's
1:03:52funny because I actually tweeted at Casper about he was like "Give me a give me a fair value gap
1:03:57Please make it work." So I uh I actually had that on So you can see this is the I can just come out
1:04:03of replay mode so we know that it's up to date So here I I used the divergence for um for ETH right
1:04:11so this is actually just a weekly PO3 I'm trying to trade that that weekly wick right i don't get
1:04:17an entry in here in this wick And then what I'm looking for is that daily imbalance with that SMT
1:04:25to be traded through right yes And then basically what happens is we trade through it It's a fractal
1:04:33I'm short right and just for everybody there's a tweet all the way over here The day I got short
1:04:39bare market confirmed It's over losers Be happy be sad you bought more Right and that's obviously
1:04:45timestamped You know I can't move that That's literally the day that I got short on that And
1:04:49that is that SMT We can get rid of this because we didn't go over that It's that daily imbalance
1:04:55And then I'm looking for that 50% of that range This is a weekly imbalance right so I wanted a
1:05:03good reaction out of here Again this is this this trade took a while right it's a more of a swing
1:05:08trade It did take a while Yeah Yeah Consolidated for a while This trade took you know took nearly
1:05:14a month to play out I was in it for a while Paid quite a bit in fees as well because at some point
1:05:20the funding switch So um yeah ultimately it took a while but it's my model to a te that divergence
1:05:26You could have tighter risk I don't really need that cuz I'm happy with this risk-to-reward I'm
1:05:30happy with two 2.25 How are you in terms of um you going from like really speedy scalp trades
1:05:37to then holding this sort of trade is it more was it any anything or was it more so because
1:05:41you know the model got all those reps you just let the model play out It's a mixture of things right
1:05:47i would I love to trade NQ on a higher time frame Yeah The margin requirements to do that are silly
1:05:54So like the leveraged opportunities to day trade and intraday trade uh indices and specifically in
1:06:00my case NQ are are really beneficial right so I have to get in I have to frame those lower time
1:06:06frame trades because I have to get in and out of the market within the same day Yeah Or I have to
1:06:11have millions of dollars in the account to to fund a margin requirement to hold that Um with
1:06:17this I don't need that I can trade this all day every day because the market is open all of the
1:06:21time And the margin requirements are the same no matter what time or day So I would I would like
1:06:27to swing trade ENQ a bit more I don't because I want to if I'm going to trade a regulated asset
1:06:31I want to trade it on a regulated broker Yes of course With crypto it's a bit more risky as we
1:06:36know and as people will know I've been burned with this a few times but this was like almost too good
1:06:41to pass up on You know we dropped so heavily and then bought back and it's just like okay
1:06:48well maybe we go to the high My risk is my risk and it is is what it is And you know was there
1:06:53a po a part where you went break even here or or adjust the stop i actually never moved this trade
1:06:58I just left it and because it was just like a I didn't even look at it you know It was like a I
1:07:03would check up on it every couple of days Oh we're up this much We're up that much Oh I could move
1:07:07a break even But it's just like especially the last couple of weeks Yeah The Trump tweets the
1:07:11crypto tweets you know it's hard to keep up Yeah It's hard to keep up Like we we we drop and then
1:07:16suddenly they announce American crypto reserve and it pumps 10% And it's like at that point I
1:07:21was already out of the trade but ultimately I was I was really wanting to see this and I you
1:07:28know people ask me do you think Bitcoin is a good buy right here i don't know because there's a lot
1:07:34to go after right but all I know is right here Oh right here this was the area that I want to see NQ
1:07:44trade into up here create that SMT that stalling that side that floating sideways action a drop
1:07:52and then if we continue higher great if we don't great you say did you mean Bitcoin you said ENQ
1:07:57sorry yeah I meant meant Bitcoin yeah too much ENQ on too much ENQ yeah but that divergence in this
1:08:02case you said was ETH right with ETH yeah within Ethereum but Ethereum's very weak right so it's
1:08:06again like there's divergence at the bottom here and there was divergences along here which I I
1:08:11knew and I accepted that my bias was lower overall with indices and just in general the market Yes
1:08:19Yeah You know and and we've seen over the recent weeks the market has heavily heavily corrected So
1:08:25yeah Well let's let's finish up with the Tradzella stat Yeah We'll show you the overall uh stats on
1:08:30Trade Zella Okay So this is the the Trade Zella dashboard Uh we'll just reync it So there's no
1:08:36you know reason As you can see here that it's a a Ninja Trader account The balance shows here as as
1:08:4326,988 Um and if we go to the dashboard um you'll see that the P&L is 26,988 Um it is a it was a 25k
1:08:53deposit Um for those that don't know I recently announced a a partnership and a basically a live
1:08:59trading program with Ninja So Ninja my my broker of choice I guess now Um and normally I deposited
1:09:0625K and they trad the the autosync feature So we can just sync all of the trades Um and then it
1:09:13will just show the statistics So over the period of the week you know relatively low trading volume
1:09:18because obviously these count as in and out in and out in and out Um and as you can see my win rate
1:09:24is 50% 50% 85 83 right and this is just this week There is obviously last week as well Um it's just
1:09:31very low week I was trying to ramp that up but as you can see the volatility from the the week
1:09:36commencing 2nd of March volatility is crazy at the moment VIX is crazy crazy high Um and these are my
1:09:42statistics right the average win loss because of that break even rate and I don't mess with the
1:09:48if it's right now my trades that are settings are if it's a minus it's classed as a loss okay so um
1:09:54some of those break even trades that I get wicked out on due to volatility do count as losses and
1:09:59that's just how it is but overall um you know max draw down consistency winning rate my winning rate
1:10:05it says trade winning percentage here obviously I haven't had a losing day but that's just because
1:10:09my break even percentages are so high and that why is why my average when loss is so low and then net
1:10:15daily P&L We obviously had that spike on on Monday as I was speaking about in the PM session where
1:10:19price really ran But overall it was just trying to get that nice equity curve Yeah Spir you know
1:10:26spiking I guess to some degree here Spiked with that 8K that 8K day Um and then the rest of the
1:10:32days are around that 5K 2K Again this was so using those base hits to build up the capital
1:10:38and then over time it will start to exponentially grow as well as when you get those larger trades
1:10:43that you use that intuition and have the base hits for Exactly this trade like I said uh like
1:10:48I explained earlier in in the video sometimes when price really really moving quite heavy you
1:10:53can just trail that and trail that aggressive stop loss and that was what happened there we
1:10:57trailed it once it hit around that 10k mark that 10k floating P&L I trailed it to just under nine
1:11:03um and literally as soon it just reverse wicked me out and continued a little bit and it is what
1:11:07it is I didn't need to get back into that move or have FOMO because based on the account performance
1:11:128K on you know one day on a 25k account it's crazy And it's purely down to volatility It's not down
1:11:19to anything else It's just I'm in the trade at the right time and price really starts to move
1:11:23quite heavy and the volume the volume just picks up and I just trail But the reality is I could
1:11:28have got out of that trade at 3K at 2K at 1K but it's purely my intuition that allows me to go this
1:11:34is really moving It's not slowing down So because even though showcasing the model as you have today
1:11:39um how important do you feel it is for traders whe whether it's your model or any model that
1:11:43they're learning from someone or come across yeah How important is it for them to collect
1:11:47the data to be able to have the confidence in it i've said this loads right it's all about the reps
1:11:52It's having the confidence that the the model is profitable over a period of time It doesn't
1:11:57need to play out every day And sometimes you may take a loser for back to back You know like my
1:12:02live streams the last couple of days I've taken a loser both times Yeah And then you know later on
1:12:07in the day I've looked at the market and gone "Oh my model's about to appear." Or I've set alerts
1:12:11and my model has appeared and I've clicked the button And that's just how it is That's you know
1:12:15the devil of the beast right so but the average person will probably stick around on the chart
1:12:20a lot more and take those silly little trades because they're they're like the daily the H4 or
1:12:26they'll be like "Oh we're trading into that daily POI." and then they'll be trading a very low time
1:12:31frame confirmation It's like but that could just pull back and continue You haven't got the layers
1:12:36to that You need that confirmation of that daily It's above it's above your area on a daily It's
1:12:41above your daily your area on a H1 And doing all of that consistently over you know years of data
1:12:48Yeah You know couple of times three four times should take you a while And once you do that in
1:12:53that repetition you'll spot it You'll be like "Oh skipped a step." Yeah I took a loser there
1:13:00I can't skip that step Those steps are there for a reason And the logic of getting out getting in
1:13:05and out at 50% of the the the relative ranges is because the market is going if it's going
1:13:11to continue it's going to continue from there And if it's going to continue without it it's a loser
1:13:16Congratulations It is what it is It's part of the game So putting those reps in is for me is
1:13:22the most important thing And that you know is why I personally use Trazella And you know I
1:13:28know you guys obviously work with them but um the journaling stuff inside of Tradeller allows you to
1:13:33journal your bad trades The back testing stuff you know they're one of the best futures back testing
1:13:38And obviously the automatic journaling for me is the the creme de la creme I like to just
1:13:43I guess show off my statistics or or showcase my statistics We love it They're great stats But yeah
1:13:48they're they're good stats But who knows Tuesday because I don't really trade Mondays and Fridays
1:13:53on Tuesday I could have a loser and these statistics look worse of course right this
1:13:57is a great run so far and it's no period of data to be you know oh an amazing trader because I got
1:14:03six seven eight winning days back to back great I could have four losers next week but overall
1:14:08I'm okay with that as long as over a period of three four five six months the model the
1:14:14model is profitable and I don't care about losing short term it's it just is what it is so well Kane
1:14:19I want to thank you again for breaking this all down for us I know that there's so much value and
1:14:23there so much for people to take away and drop a comment with your biggest takeaway from this
1:14:28first initial chart fanatics episode So this is our first of many to come and no better way than
1:14:34having Kane with us today The links for Kane and the lab will be in the description So make sure
1:14:38you go check those out Hit subscribe and until next time everyone it's been Chart forex Take care

About this transcript

This page contains the full transcript of Worlds BEST NQ Scalper Reveals His A+ Trading Strategy by Chart Fanatics, generated from the public captions YouTube serves with the video. The transcript has 14,467 words across 752 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.