Transcription
You see, trading isn't hard. You just need to repeat the same strategy every single day and keep it simple. It's the same strategy that has allowed all these traders to finally see success within their trading journey.
And all you are going to do is find the trend and the range, find the area of demand or supply you want to enter from, and then use a lower time frame change character for your entry. Now, let me show you exactly what I mean. For example, this isn't cherrypicked. This is literally from yesterday because this happens every single day.
You want to find the trend and the trading range. I can see we have a low, high, lower low. This gives me a bearish trend and a bearish range. As long as we stay below this high, I'm expecting price to continue to put in lower lows. If price breaks this high, I start looking for longs. It's pretty simple.
Can I find areas of supply? Well, the first thing that I can see is if I draw my zone where my breaker structure was, right? This becomes my zone. I want to enter in here. I can see we left a zone. Tap back lower low. This simply becomes liquidity. This means if this is my liquidity, I'm looking for an area of supply or demand above here. I don't want to look for one below here because I'm expecting this to be swept.
Now, my area of supply, as we've talked about in previous videos, is simply a swing high. So, do I have any swing highs to the left of it? I have a swing high here and a close below the highest bullish to the left of this swing high. This is my highest bullish. We have closed below. This then becomes an area of supply. Do I have any more? Well, I have another swing high here. What is the highest bullish candle? Well, this is also the highest bullish candle as it closed above this bullish candle here. And look what happens as soon as we close below that candle. That becomes a valid area of supply. It is super super quick and super super simple.
So now that is all the steps done. I just need my lower time frame change of character either in here in here or we don't get one at all and I flip bullish. Let's see what price does. Price right we put in a low. We have now come and swept this liquidity and tapped into this area of supply. Let's play price.
As you can see in this first area of supply, if we drop down to the lower time frame, there was absolutely no change of character. We made a high low, high, low, high. So, no confirmation to enter that trade there. When I go back and find this higher area of supply we had here, this is a good area. Why? Because it is still unmitigated as we can see, right? 50% is my mitigation line. It has not been filled. So the zone is still valid. If we had done this, then this zone is now invalid because price has filled in all these orders. But this is still valid. And this first tap simply becomes new liquidity. So if I show it on the lower time frame, we can see we have an area of supply with liquidity within it and unmitigated 50% still fresh. Perfect.
Now I can drop down to my lower time frame and look for that change of character which happens once we close below this low as now we have done a high low high high lower lower low. This is my area to enter short. So I will enter my short position here. Stop loss above always above this swing high here because I'm expecting this high to hold. And I like to target a simple yes. Where am I expecting price to go? All the way back down to this higher time frame low. Do I target that? No. I go for a simple one to 1.5 risk-to-reward. That way I only need a 40% win rate and I am still profitable. Let's pray play this out. Boom. We can see price has smashed the TP. I don't care about this bullish fair value gap here, etc. Because we're bearish. We've got all our confirmations. That is all I need. And as we can play pass out, nice.
I can see it has actually come and breaking this low. Broken this low. And what did we do before breaking this low? Well, we came back to where? Well, we have this swing high. Oops, that's the wrong button. We had this swing high here. This highest bullish candle. We close below it. Comes a new area of supply and a downtrend. We come to fill it and we dump back down. If you wanted a continuation play there, back towards these lows. Simple stuff.
So now let's look at an uptrend. So we always start with the exact same thing. Let's look at the trend and the uh break last range. Well, we are clearly in an uptrend and this is my breaker structure. So we are still bullish as long as this low here holds giving me my zone from here to here. Now where is my liquidity? Well, where did we leave this zone? Tap back in and then make a higher high. So you can see that we left this zone here. Tapped back in, made a higher high. This tap simply becomes my liquidity. So now I know I am in an uptrend. Okay, I have my liquidity. I want to find an area of demand below this liquidity here.
The first step is find a swing low. So obviously if it's below this liquidity, I'm going to go from anything to the left. This uh no swing lows. The first swing low we have is actually this candle here. Now, is it the lowest bearish candle? No, because it did not close below this candle here. So, this is actually my lowest bearish candle. This again is another example from yesterday because it happens every day. So, we didn't close below this bearish candle. This is my lowest bearish candle. So, as soon as we close above that like we have done so here, that validates this as an area of demand. So, this is a bit of a different example. Well, same example but looks a bit different because we actually have now this as our whole area of demand. But if I know that I only want to insert after this as liquidity has been swept, I can just minimize it to this area here like that. So now I know I want to look for a long here.
The last step is a change of character. Again, this is a good zone because we have liquidity. And can you see again completely fresh and unmititigated. If price had did this then this zone would be invalid to me. I need to wait for price to come and sweep that liquidity. Boom. There is the sweep. Let's now drop down to a lower time frame and look for a shift in structure. Well, currently I can see that we have a low high low. So what do I need? I need a close above this high here, but that would be too high in this scenario. I don't want to be buying so high. So, can I find an earlier sign? Well, in this situation, I can see that we pulled back. If this high fails to make a new low and we break that, that for me is a sign that we about to get a shift in structure and buyers are back in control.
So if we do a recap, we go back to our higher time frame and we can see that price okay is bullish come into our area of demand swept liquidity. And now although this isn't technically a shift in structure because this high didn't make a lower low. So this is our protected high based on the context. I can see we came into this area here, right? We couldn't make a new low. We tried to we failed. We even inverse this bearish fair value gap and we have taken this high leaving a bullish fair value gap. This is my sign or my lower time frame confirmation that I am willing to take this long position stop loss below and again go for that one to 1.5. Even though I am expecting price to come and take out the external high all the way up here, I don't care. Let's play price out. Boom. You get a better entry and nice. It smashes the one to 1.5 and takes out that external high. So, all we're doing is trading the structure, trading the trend, and life is good.
So, if you like this video, I appreciate any likes and subscribes. Any questions you have, please feel free to drop it in the comments section below. If you do want to work with me oneonone, the link for that is also in the description below. First come, first serve. It is launching on January the 14th. And yeah, apart from that, appreciate your time as always and I'll catch you in the next.