Transcription
I've tested a lot of setups over the years. Different strategies, different indicators, different approaches, and I kept coming back to the same one. Not because it's complicated, not because it's some sort of secret, but because once you understand it properly, nothing else makes sense to trade. It's the market structure setup I will use for the rest of my trading career. And by the end of this video, you'll see exactly why.
Before I show you the setup, I want to explain to you why most traders can never find one they can stick with. They're always looking for the next thing, the next strategy, the new indicator, the next approach. And every time the setup has a losing streak, they abandon it and restart the whole process. I did the same thing for years, and the problem wasn't the setup, it was the trader. Consistency doesn't come from having the best strategy, it comes from understanding one strategy so deeply that you can execute it in market in real time with extreme confidence. And that's exactly what this setup gave me. And it works because it's built around how the market actually moves. Market structure, liquidity, supply and demand.
Every time I take a trade, it starts in the same place, the higher time frame, which for me is mainly my 5-minute time frame. I need to understand what is the structure and what is price doing at this time frame before I drop down to a lower level. The easiest way to get your bias, to get your structure, is look at recent, and I mean recent, highs and lows, okay? This piece of price action here is all I need. I don't need to go back to 10 years ago, etc. I can just look in most recent price action, what do we have? We have a high, a low. We broke a high, okay? We have a high, a higher low. We respected this low, we broke this high, we had a new high, broke this high, new low, respected this low. High, new high. So, we are doing what? Successively, as you can see, even if I draw this little trend line, whatever, we are making, all right, bullish moves. We are taking our highs and we are respecting lows. So, guess what? I want to be bullish and I want to look for longs only. Nothing changes unless we make a lower low, which is this low here. So, I know my whole bias is purely look for longs as long as we respect this low and continue to push higher. You want to be trading with the money. You don't want to be trading against that.
This is what happens when you ignore the time frame. You might see a nice area of supply, a nice six-tap on the lower time frame. You look to take these shorts. You put your stop loss above. You target a lower low. And as you can see, boom, you get stopped out. Why? Because we go back to the higher time frame, we can see price is clearly bullish and we should be only, okay, only looking for longs as long as we continue to make this higher low, higher low, etc.
Okay, now I know the trend, I need to know my trading range, okay? And if I look at that, I can see we had high, low, higher high, higher low, higher high. This, as we know, right previous videos, we do not take into account small structure. So, we big structure, big structure, small structure, higher. We do not take into account big structure. So, my last So, small structure, my last break structure is this. My protected low is here. And my high is up here. This is my trading range from here to here. And I always mark my last breaker structure. That becomes my zone. I need to or have to take my trade in this green zone here, nowhere else. That way I'm buying in a good area. I'm not buying too high and I'm buying where the money is positioned.
Now, of course, this is the part of the setup that made reading the charts so much easier is liquidity. I like to focus between my range low, my range high, and where do I have liquidity, okay? So, in an uptrend, lows are liquidity. In a downtrend, boom, highs are our liquidity. So, what did we notice in this chart here? We are in an uptrend. So, our liquidity is going to be lows. So, we need to look at lows between here and here that we can sweep. Not below this low cuz this is our protected low, but above this low and below this high. And the best liquidity is that that looks like a fake change of character or fake break of structure, whatever. Here we can see a lot of people would have their break of structure here. So, a lot of people would have their protected low here. So, this immediately becomes a super good liquidity spot to use, okay? We want our liquidity to break some sort of structure. This low here, what did it do? Broke this high here. Why is this important? Because now this is juices a lot of early buyers or sellers, whatever. They put their stop loss here. We are going to sweep them out and then get the real move, okay? If we have a leg like this previously mentioned, boom, boom, boom, boom. Boom, right? This is not liquidity. Because this did not make a higher high. It needs to create a sort of break of structure. Now we can label it liquidity. So, we go back to our position here. What can we see that happened? This low actually gave us that many break of structure. So, we can use this here as our liquidity. It becomes validated as soon as we take that high.
Let's go into some chart examples. Let's look at price on the way up. What did we do, right? If we're going up, we expect some price to sweep liquidity to the upside, sweep lows and then push up. Swept this liquidity, pushed up, all right? Let's keep going, more examples. What did we do here? Swept these lows, pushed up, okay? Swept this low, pushed up. In a downtrend, what are we expecting? Swept this high, pushed down. Swept this high, pushed down, okay? Over and over again. What did we do? We swept this high up here, pushed down, okay? So, it's the same concept. We will need to get into this trade after the liquidity has been swept, not before.
Now, for high probability, we need to know is there a point of interest underneath this liquidity? That can be an area demand, or that can be a fair value gap. Well, in this situation here, we have a completely fresh gap, right? Fresh fair value gap. If I drop down to the lower time frame, we'll see we're in area of demand. And yes, we can see that this is where price went from bearish to bullish. So, this is also an area of demand or origin, okay? Where price kicked in. We call it the origin of the move. Where price went from bearish back to bullish and expended higher. So, boom, now we can refine it to these specific areas here. We have POIs. This is becoming an A+ setup.
Now, here is what most traders get wrong. They simply enter on this sweep and target like that. You can get a lot better risk to reward and a lot better RR by using the method where I'm about to show you. Because the POI, this all tells me where to enter. I know to enter after the sweep somewhere here, but it does not tell me if I should enter or not and why I should enter or not. So, I need to see some sort of reaction coming. Again, we haven't made a new break of structure, so I can keep my zone here. I need to see some sort of reaction after sweeping this liquidity here. Boom. We swept this liquidity, we're coming to it. What can tell me that if we break, we are now bullish? Well, let me check. Let me go back to my lower time frame. Let's see. We don't really have a clear protected low here. So, if we go back to the entry confirmation video I dropped on this channel a couple days ago, what else can we use? We can use an inverse fair value gap. So, I'm currently watching this gap to be inversed. Let's see what we do. Boom. Inversed with extreme lovely displacement. So, we've come into our liquidity, right? We've come into our demand, we've swept liquidity, come into our zone, right? We respected a bullish fair value gap. We respected a bearish fair value gap. Can you see how this is now a higher quality A+ confirmation? Everything is telling you that you should long this trade here.
Now, you don't have to put your stop loss all the way below here. Remember, we are in an uptrend. We're trying to catch the higher low that give us the higher high, higher low that give us the higher high. So, if we are expecting, if we're reading structure, we're seeing high low, high low, high we are expecting this to be the higher low that's going to give us the higher high. We don't need to put our stop loss below this zone. Put it below this low cuz if this is not the higher low, then we're going to be wrong, we'll out. If this is the higher low, then price should not come below here and we can target higher prices. I like to go for at least a 1 to 1.5 to keep it simple. Play this out. Boom. As you can see, price just rockets and smashes TP.
This is the exact setup I use every single day. Now, this isn't a case of oh, this is the only setup that works in the world. What I'm telling you is this is a setup that personally changed my life. The clarity to jump on any chart, know exactly what I'm looking for, where I'm looking for it, and why I'm looking for it. No confusion and it takes me minutes. The patience to wait for my setup and the confidence to pull my trigger when I see those exact steps I just showed. And the consistency to repeat that process every single day without second-guessing myself.
And if you're serious about taking this to the next level, I will work with you one-on-one until you are guaranteed profitability and I will not stop working with you until so. The link for that is in the description. You can also join the premium Discord where you can get 3 months access to my live streams, watch me trade every single day, see the exact trades I'm taking, and daily breakdowns, etc. Whole lot of stuff in that community, too. Link is also in the description. Other than that, appreciate any likes, comments, subscribes. As always, anything you want me to drop a video on, drop it in the comment section below. Thank you for watching and I'll catch you in the next one.