Izy Trades
  • 4 months ago
Transcript
00:00What's up Lions of Wall Street? We are still on Module 6.
00:05Previous one we looked into chart patterns.
00:08Now we are looking into candlestick patterns based on price action.
00:13The rules of engagement is still the same.
00:16You are supposed to be on H1 to identify that candlestick pattern.
00:22The first one we're going to look at will be the hammer.
00:25Let's get into the charts and see what we can find.
00:29Let's go.
00:30Nice and easy. Easy tricks. Let's go.
00:35Now over here we can see that we are on US30.
00:394-1-15 is done.
00:41Two sets of H4 support and resistance is done.
00:44One set of H1 support and resistance is done.
00:48And also your H4 trend line is done.
00:52Now that is all being set up, we see where the market takes us to.
00:56We have to focus and only look into the hammer on this particular tutorial.
01:02So we just let the market do whatever it wants, not focusing on anything else.
01:06We can see that the price is reacting on the H4 trend line.
01:11And we hope that we can find a hammer pattern over there.
01:15We look closely that the price indeed is rejecting the H4.
01:19And we can see that no hammer pattern is formed yet.
01:23As of now, we can see that one has already taken place.
01:27That is your hammer over there.
01:29And we just have to identify that there are two confluences here.
01:34One, a hammer has been formed.
01:36Two, a rejection on the H4.
01:39Good enough, that's where I'm going to call for my buy.
01:42My stop loss will be the previous low from the hammer.
01:46My take profit area can be in either of my zones.
01:52So I'm taking a risk to put it on my H4 zone.
01:55And let's see how the price reacts towards it.
01:59If you would have put it on H1, it would have been your TP1.
02:03Taken and backed in.
02:05There we go, TP2.
02:07Backed in profit, as easy as that.
02:10$428.76.
02:12To summarize this, we have to follow the rules.
02:16The rule says, be on H1, stay on H1.
02:20Identify a hammer.
02:21What are the characteristics of a hammer?
02:23A bullish closure with a long wick at the bottom.
02:26If it falls on your H4 or your support or resistance,
02:31or whatever confluence that you see,
02:33then that adds on to a higher confluence.
02:36The more you should enter it.
02:38That is how a H1 hammer is done.
02:41Nice and easy.
02:42Easy trades.
02:43Let's go!