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00:00What's up boys and girls? Welcome to Module 5. This is your tutorial recap.
00:05We're going to look into trading strategies. There are many out there.
00:08Only a couple that are covered in your slides. However, I'm not going to cover everything.
00:13I'm just going to cover the major important ones.
00:16First one will be 4-1-15. That will be your backbone.
00:20You got to master 4-1-15 because in any instrument that you trade,
00:244-1-15 has to be done prior to anything else. That is so-called your ground prep.
00:29How we do that? We are going to look into two different time frames, the H4 and the H1.
00:35On the H4, you're going to have two sets, the major and the sub.
00:38And when you go to H1, you're just going to have one set, which is the resistance and the support.
00:43Now, let's go and take a look into the chart and see how we can do that.
00:48Let's go!
00:54US30, whole structure, it's a lot of noise.
00:57How do we remove that noise is that we're going to change it into a line chart.
01:01On a line chart, you can see things clearer and better.
01:04So now, that is the area that we are going to focus at.
01:08We're not going to focus on that lowest low.
01:10We're not going to focus whatever happened in July. We're going to forget that.
01:13We're just going to focus in that playing area. That will be our trading area.
01:18Because why? That lowest low is so damn far from where the current market is.
01:22It doesn't make sense for us to actually hope that the market will reach there.
01:26First up, your major resistance up there.
01:28Two or more touch points in the bottom area.
01:31And then, we're going to go to the major support, which is just over there.
01:34Multiple touch points. So that makes it a valid one.
01:37There's a breakout on the left and then there's a rejection in the middle over there.
01:41And that makes a very good and a very solid support zone for your H4.
01:45Next, we are going to look for the sub.
01:47We're going to look into multiple touch points and possible rejections.
01:51So we can see over there, rejections, breakout, rejection again.
01:54And then, breakout again. And then, rejection again.
01:57And then, it flies out.
01:58Another sub resistance over there.
02:00You can see that the price rejected around that area multiple times with multiple touch points.
02:06Now, we're done.
02:07And then, we're going to zoom in and zero in to H1.
02:10H1 has to be a point where it is closest to where the current market is.
02:15Currently, the market is resting on the H4.
02:17And the H1 support, it is going to be just over there.
02:20Where can the resistance be?
02:22Just slightly above the H1 support.
02:26You cannot be sharing H4 and H1 resistance together.
02:29So, it has surpassed the H1 and the H1 resistance.
02:33We can see clearly that that will be our playing field.
02:384, 1, 15 is done, right?
02:40Now, we look into H4 and we see how the market corresponded to our setup.
02:44And we have to tidy things up.
02:47Are we going to do that?
02:48We're going to switch to H1.
02:50And when we get to H1, we're going to zoom in and we're going to tidy things up.
02:54From body to wick, body to wick, body to wick.
02:56There, we can have a higher accuracy if the price enters our zone.
03:02Because if it's not tidied up, we can fall into that trap.
03:05We thought it is the zone, but it's actually not.
03:06We look over the H1 from the top of the wick to the body.
03:10And we can confirm and see that there are rejections around the area.
03:16There are also reactions in that zone.
03:18We go into the H1 support.
03:20Look over there.
03:21It is fine.
03:22Multiple rejections.
03:23And then we look into the H4 sub.
03:25The wicks are touching the bottom part of your zone.
03:27There are multiple reactions over there.
03:29Fine.
03:30Now, we go to the H4 major support.
03:32We just have to tidy it a bit up.
03:33Move the zone to where the bottom most wick.
03:36And we can observe a breakout, a retest, a confirmation.
03:39And things just takes its course.
03:41You got your 4, 1, 15 done.
03:43You have tidied up everything.
03:44You can observe multiple breakouts with retest.
03:47And you can be assured that this setup or this ground prep is done.
03:52Now, what is the next step?
03:53Got to see a trend.
03:54Got to observe a trend, right?
03:56You got to know where the market is actually heading towards too.
03:58You can see that currently the market is at its highest point.
04:02We don't know what's going to happen up there.
04:04Perhaps there might be a rejection.
04:05Perhaps not.
04:06So, we're going to draw a tool called Parallel Tool.
04:10Now, Parallel Tool, what are the rules?
04:12It's either in 1 hour or 15 minutes.
04:14Now, we can see that the price is actually playing in a channel.
04:18Just draw and draft up a Parallel Tool first.
04:21And then you can just tidy it up to have more accuracy on where the parallel channel is going to take you.
04:27That is done.
04:28When everything is all set, you can see that the price is indeed in a parallel channel.
04:34So, you know that your game is going to be a bullish game.
04:37Your setup is going to be a bullish setup.
04:39All your calls are going to be a bias or a buy.
04:43So, that is how you set up your phone.
04:46You have to identify the areas of reaction, areas of rejection, areas of breakout, areas of touchpoint.
04:55So, once you identify all those, then the zones can be a valid one.
05:00After plotting everything, you have to tidy it up.
05:03Go back to your H1.
05:04Turn on the candle mode and tidy things up.
05:06Body to it.
05:07There may be a few wicks that are out of place.
05:10You may want to remain.
05:12Okay, I say you may want to drag all the way down.
05:15However, this will be to your disadvantage because those are liquidity sweep areas.
05:21You can only see that in SMCs, but you can't see that before.
05:24If you want to drag and expand your zones, that'll be a fair-ass zone.
05:28And that is going to waste your day if the price stays in the zone.
05:33If market in the zone, you are forbidden to trade inside the zone.
05:37You got to wait for a breakout or wait for a down to happen.
05:40Once that happens, then only you can take action.
05:43Otherwise, stay out of the zone.
05:46After you have finished your 4-1-15, tidy things up, you're going to find a trend.
05:50It can be done in two ways.
05:51You can draw a trend line which is on the H4.
05:54Pull out your H4 time frame.
05:56Use the ray tool, draw a trend line.
05:58There, you can identify the trend on where the market is heading towards to.
06:03Then you can have your bias for the day.
06:05What will be your decision for the day?
06:07If it's a buy, stick to the buying plan.
06:09Even if a sell is presented to you, brush it aside.
06:12Stick to the plan.
06:13Then, you can also use the parallel tool which we have used just now.
06:17The parallel tool will identify the upper band, the mid band and the lower band in a one-hour time frame.
06:23So, you have two confluences now using your parallel tool in a channel and your 4-1-15.
06:30That will have given you a good enough reason for you to enter a trade.
06:33So, that being said, that is how you do your 4-1-15.
06:38Trend line and that's all I have for this module.
06:42We're going to go to the next part of this module and we're going to talk about Dow's Theory.
06:47Nice and easy.
06:48Easy Trades.
06:48Let's go!